28/03/2026
Asia Faces Energy Crisis, Indonesian Coal Tycoons Quietly Reap the Benefits
Asia is being swept into a deepening energy crisis—but behind the scenes, Indonesian coal producers are finding reasons to smile.
Coal prices are surging once again, fueled by a sharp spike in oil and natural gas prices. April coal futures closed at US$142 per ton on Thursday (March 26, 2026), jumping 3.3% and snapping a three-day losing streak that had dragged prices down by 6.1%. The latest close also marks the highest level since March 20.
The rally comes amid growing fears of an energy crunch, particularly across Asia, as oil prices continue to climb. Brent crude futures soared 5.66% to US$108.01 per barrel, while West Texas Intermediate rose 4.61% to US$94.48 in the same session.
Coal prices have already surged by around 20% since the outbreak of the Iran conflict, as prolonged disruptions to global oil and gas flows force major economies to fall back on coal-fired power.
The looming energy crisis is pushing many Asian countries to return to coal as a reliable backup.
The region remains highly vulnerable due to its heavy reliance on energy imports—much of which passes through the critical Strait of Hormuz, a chokepoint for roughly one-fifth of global oil and gas trade.
Liquefied natural gas (LNG), long promoted as a “transition fuel” toward cleaner energy, is now under pressure. While LNG burns cleaner than coal, it still produces emissions, particularly methane. The United States has been actively expanding LNG exports to Asia, but ongoing disruptions have limited its impact.
As the conflict drags on, many countries are being forced to abandon cleaner alternatives and revert to coal to fill the growing supply gap.