Asian Nations Reactivate Coal Infrastructure as Middle East War Cripples Global Oil and Gas Supplies

Japan, South Korea, and the Philippines ramp up coal production as the Middle East conflict threatens energy security. Discover Asia's new energy strategy.

By: AXL Media

Published: Apr 4, 2026, 4:05 AM EDT

Source: Information for this report was sourced from CNA

Strategic Reversion to Coal Amid Maritime Blockades

The effective closure of the Strait of Hormuz has triggered a massive shift in Asia’s energy strategy, forcing governments to prioritize immediate power stability over long-term climate commitments. As the primary destination for Middle Eastern fossil fuels, the region has seen its supply lines severed, leading to an emergency resurgence of coal-fired generation. According to regional energy data, coal and its derivatives already accounted for nearly half of the Asia Pacific's energy supply prior to the conflict, and this reliance is now deepening. While many nations had previously pledged to phase out the fossil fuel, the current war on Iran has transformed coal from a sunset industry into a critical insurance policy against total grid failure.

National Mandates Override Environmental Caps

In response to the tightening supply of liquefied natural gas, several industrialized nations have issued executive orders to maximize coal output. South Korea led the transition by lifting production caps on its coal plants in mid-March, permitting facilities to operate at over 80 percent of their installed capacity. Japan has followed suit, granting a one-year reprieve for its older, less efficient coal plants to operate at full tilt, a significant departure from previous 50 percent operational limits. These moves represent a pragmatic, if environmentally costly, realization that domestic energy security now outweighs the pace of the green transition during a period of active warfare.

Southeast Asian Economies Pivot to Affordable Baseloads

The Philippines and Thailand are also recalibrating their energy portfolios to shield consumers from skyrocketing electricity costs. In Manila, where a transition toward natural gas was well underway, authorities have instead boosted operations at existing coal facilities to maintain affordability. Similarly, Thailand has ordered the reactivation of decommissioned units at its Mae Moh plant to ensure a steady baseload. For these emerging economies, the intermittent nature of renewable energy sources remains an insufficient substitute for the heavy industrial demands and urban expansion that require the consistent, high-output power provided by coal and traditional fossil fuels.