The Philippines has declared a nationwide energy emergency, becoming the first country to take such a step in response to disruptions caused by the ongoing conflict involving Iran.
Manila’s position is that “peace, stability, and adherence to international law are essential to safeguarding maritime routes that are vital to regional trade, including for the Philippines and Taiwan.”
Natural gas prices have already doubled since the start of the war in the Middle East and are expected to rise higher as the last of Qatar’s LNG exports arrive at their destinations. Now everyone is switching to coal.
From South Korea to Indonesia to Bangladesh, governments are increasingly turning back to coal-fired power generation to help offset a widening shortfall in LNG imports.
The war involving the United States, Israel and Iran has sent a delayed shockwave through global energy markets and nowhere is the impact more acute than at petrol pumps across Asia.
Malaysia has emerged as one of Southeast Asia’s top-performing markets as the war in Iran drives energy prices higher and pushes global investors towards economies better positioned to weather volatility.
China is also increasing its purchases from Russia, with imports estimated at 1.2mn to 1.5mn tonnes – primarily for use as a substitute feedstock in refineries.