Japan's Coal Shift Fails to Compensate for LNG Supply Loss from Hormuz
Japan is facing challenges in replacing liquefied natural gas (LNG) supplies lost due to the closure of the Strait of Hormuz, a critical route affected by the US-Israel conflict with Iran. The International Energy Agency reports that this closure has removed nearly 20% of global LNG supply, significantly impacting Japan, which heavily relies on this route for its imports. In response, Japan has temporarily increased its coal usage by suspending a cap on coal plant operations. However, this measure is expected to be short-lived, with the policy set to be reinstated in the next fiscal year. Despite the policy shift, Japan's coal imports are insufficient to fully replace the lost LNG, with potential savings covering only a fraction of the annual imports through the strait. 
