Coal Is Fueling China’s Next Energy Power Play
U.S.-Iran Deal Delayed as Trump Refuses to “Rush” Agreement Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.
Coal is inarguably one of the big winners from the energy flow disruption in the Middle East.
Consumption is up strongly as gas becomes hard to come by and expensive to buy.
Power supply security has overtaken any emission concerns.
Yet it is not only in power generation that coal has regained popularity.
Coal is also increasingly being used as feedstock for chemicals, notably fertilizers.
Recently released data from China showed that coal production in the world’s top consumer had dipped in the first four months of the year.
Imports were also down, and power generation from coal declined, extending a trend that began in 2025.
The figures would suggest China is reducing its use of coal, but in fact, coal consumption is still going strong in the Asian powerhouse—the commodity is simply being used for more than power generation and metals smelting.
China is using coal to make everything from gas to petrochemicals—and now India is planning to do the same.
Earlier this week, Reutersreportedthat PetroChina was developing a project for the extraction of gas from coal rock, eyeing output of 30 billion cu m by 2035.
The extraction technology is very similar to that used in shale formations, the report noted, adding that China is the only country where hydraulic fracturing is being used for so-called rock gas extraction.Related: Oil Prices Rise as Iran Tempers U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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