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Home Latest Energy News By Tsvetana Paraskova - Oct 19, 2026, 5:30 AM CDT Japan’s average power prices jumped by over 25% at the start of this week from the previous week amid soaring LNG and higher coal prices. The nationwide power price rose by over 25% week-to-week to $0.19 (31.15 Japanese yen) per kilowatt-hour (kWh) on Monday, Bloomberg reported , citing data from Japan Electric Power Exchange. Japan, one of the world’s biggest LNG importers, this summer reduced gas-fired generation in favor of coal as the price of liquefied natural gas remained elevated.
Japan has been burning more coal and less gas for power generation since the war in the Middle East started, and it is not the only one. All Asian countries have made the switch from gas to coal on affordability and availability grounds. Moreover, surging oil prices have led to a significant increase in Japan’s import bill for oil and LNG.
LNG prices surged in Asia to a four-year high as very few cargoes manage to exit the Strait of Hormuz while competition with Europe for winter supply is intensifying. The average spot LNG price for delivery into north-east Asia in December was assessed at $29.30 per million British thermal units (MMBtu) at the end of last week. This was the highest spot LNG price for Asia since December 2022, and sharply higher compared to $26.50 per MMBtu assessed in the previous week.
As a result, Japan’s gas-fueled power generation is the most expensive in years. The switch to coal, for its part, has also had its cost challenges this year. Increased demand in Asia amid reduced supply from the top thermal coal exporter, Indonesia, is driving up coal prices, too.
The global benchmark for coal prices, the Newcastle futures, have jumped by 30% compared to pre-war levels. Power prices in Japan have also jumped this month due to scheduled maintenance at some power-generating facilities ahead of winter. By Tsvetana Paraskova for Oilprice.com More Top Reads From Oilprice.com China's Coal Production Slumps 6.8% as Winter Supply Fears Grow Data Centers Drive Surge in India’s Renewable Power Demand Iran War Set to Push PetroChina’s Trading Profit to Record $3 Billion Join the discussion | Back to homepage Tsvetana Paraskova What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,...
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