India Shifts to Coal Amid LNG Shortage
Analysis based on 7 articles · First reported Mar 10, 2026 · Last updated Mar 11, 2026
The Indian market will see increased demand for coal and potentially higher prices for thermal coal, while the demand for liquefied natural gas may decrease. Companies like NTPC Limited will shift their operational focus, impacting their fuel procurement strategies.
India is preparing to significantly increase its reliance on coal for power generation during the upcoming April-June summer months. This shift is a direct response to tightening liquefied natural gas (LNG) supplies, which have been affected by shipping disruptions linked to the U.S.-Israeli war on Iran. The government has received no bids for gas-based power tenders and is actively working to bring coal plants online and prevent shutdowns. NTPC Limited has already stated it cannot supply gas-fired power. Petronet LNG, India's largest gas importer, has issued force majeure notices to customers like GAIL, Indian Oil Corporation, and Bharat Petroleum due to halted supplies from Qatar and Abu Dhabi National Oil Company. Despite these challenges, experts from S&P Global===CRISIL Ratings believe India has ample coal, lignite, nuclear, hydro, and wind capacity to avoid material power cuts, with coal already accounting for nearly 75% of its power generation.
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