The increase in natural gas prices may lead to a growth in global coal demand as an energy alternative. This situation arises in a context of growing demand for more economical energy sources when gas prices rise significantly.
The rise in gas prices was caused by disruptions in the transportation of liquefied natural gas through the Strait of Hormuz. This waterway is one of the most important in the world for energy transportation, connecting the Persian Gulf to the Gulf of Oman and the Indian Ocean.
When logistical or geopolitical problems occur in this strategic region, such as political tensions or maritime incidents, the transportation of liquefied natural gas is affected, causing temporary shortages and price increases in international markets.
As a result, consumers and industries worldwide may come to opt for coal as a more affordable energy source, partially reversing transition efforts towards cleaner fuels and contributing to an increase in carbon emissions globally.
