Benchmark thermal coal prices have surged by their widest margin in three years following an unprecedented total shutdown of Qatar's liquefied natural gas operations, sparking a desperate scramble for alternative fuels in the power sector.
Newcastle coal futures, the primary Asian benchmark, jumped 8.6% on March 2 to hit US$128.70 a tonne—the highest level seen since late 2024.
The price spike was triggered by an Iranian drone attack on the Ras Laffan facility, the world's largest LNG export hub, which forced a complete halt to production for the first time in its 30-year history.
With the plant typically accounting for one-fifth of global supply, the outage has sent ripples through the energy complex; European gas prices plummeted into volatility with a 39% spike, while Asian nations, including Taiwan, have already begun preparing to ramp up coal-fired generation to offset the massive deficit in gas supplies.