Japan's LNG Imports Fall 7% as Utilities Chase Cheaper Coal

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Japan decreased its LNG-fired power generation by 16% in June 2025, favoring coal-fired plants which increased by 4.6%, as LNG prices remained high despite improved energy flows through the Strait of Hormuz. This shift reflects changing energy consumption patterns amid Middle East conflicts.

Japan last month reduced gas-fired generation in favor of coal as the price of liquefied natural gas remained elevated despite multiple reports of energy flows out of the Strait of Hormuz improving. The country generated 17.3 terawatt-hours from gas-fired power plants in June, Bloomberg reported, which was down by 16% on June 2025. Coal-fired generation, meanwhile, went up by 4.6%, according to data from the nine largest Japanese power utilities. Japan has been burning more coal and less gas for power generation since the war in the Middle East…