00:00Welcome back. As the conflict in the Middle East continues to disrupt global LNG shipments,
00:05several Asian nations are turning back to coal to breach the energy shortfall.
00:10India is increasing coal burn to meet peak summer demand,
00:14while South Korea has lifted caps on coal-fired electricity.
00:18Thailand, the Philippines and Vietnam are also boosting coal-fired power.
00:25Vulnerability is being further heightened by Indonesia.
00:29The world's largest coal exporter, which is now prioritising domestic supply over foreign sales.
00:35This move could tighten regional markets and push global prices even higher.
00:40The benchmark Newcastle coal price has already risen 13% since the start of the conflict.
00:46I think the short-term impacts are probably higher emissions, lower air quality results,
00:55and that's very problematic.
00:58As a result of higher coal usage around the region too, that's also driving up coal prices in the region.
01:06So coal may not be directly affected by the Iran crisis,
01:11but because demand is going up, we also see prices rebounding to historical levels.
01:20An expert argues that the volatility in fossil fuels proves that a shift to renewables
01:25is now a matter of national security.
01:29I really think that the whole of the Asia-Pacific region, Southeast Asia, South Asia, East Asia, including China,
01:37is a massive decision moment now with this latest crisis in the Middle East.
01:40Why? Because obviously we've seen a huge spike in oil and gas prices,
01:45huge blockages in terms of actually delivering those energy resources to the region.
01:52And so for me, these countries have a decision to make.
01:56Do they go down the route of becoming electro-tech advanced modern economies
02:01relying on solar PV, on battery storage, on electric vehicles,
02:06on other high-end electrical equipment such as heat pumps and so on?
02:11Or do they stay in the old world and remain dependent on different types of fossil fuels,
02:18whether that be oil, gas or coal?
02:21Asia is highly exposed to the fluctuations in energy markets
02:24because it relies on imported fuel, much of it passing through the Strait of Hormuz,
02:29a choke point for about a fifth of global oil and natural gas trade.
Comments