Platts: IEA Warns LNG Continues To Face Strong Headwinds from Coal Markets In Asia

LNG continues to face strong competition from the coal markets in Asia despite recent reductions in prices, Fatih Birol, Executive Director, International Energy Agency, said Monday.

Speaking at Singapore International Energy Week, Birol outlined that LNG would soon face challenges to its growth if it does not become more competitive on price.

"The main issue is that LNG is competing with other fuels. You cannot look at LNG in isolation ... I see for LNG a major challenge, especially in this region, coming from coal."

Operating costs for coal-fired power plants are almost half of existing LNG fired units, according to IEA figures, giving coal a strong pricing advantage, particularly in countries with minimal environmental restrictions. MORE