Global coal shipments and imports surged in March and April as buyers scrambled for fuel amid massive disruptions to oil and gas supplies from the Middle East, Oilprice.com reported, citing a report by the Financial Times.
According to the report, estimates by analytics platform Kpler, cited by the Financial Times, show that coal demand has been accelerating in recent weeks, with global coal imports on track to reach their third-highest monthly level on record.
In the wake of what has been described as the worst oil and gas supply disruption in history, coal is back in high demand. Even countries and regions that previously believed coal use was in irreversible decline have increased imports.
For example, coal shipments to South Korea, Japan, and the European Union surged by 27% last month compared to the same period a year earlier, according to data released last week by BIMCO, the world’s largest shipowners’ association.
Asian importers and the European bloc are scrambling for alternatives to gas supplies from the Middle East, much of which is currently trapped behind the Strait of Hormuz or unavailable due to halted production in Qatar.
Qatar suspended LNG production as early as March 2, and two weeks later, the world’s largest LNG complex at Ras Laffan reportedly sustained damage from Iranian missile strikes.
“The closure of the Strait of Hormuz has disrupted LNG shipments out of the Persian Gulf and has contributed to an 8% year-on-year drop in global seaborne LNG shipments in April,” BIMCO said.
South Korea has delayed the retirement of coal-fired power plants amid the oil and gas shock caused by the Middle East conflict.
Europe, meanwhile, is losing competition with Asia for spot LNG supplies at a time when it needs to refill gas storage facilities ahead of next winter.
Analysts at Wood Mackenzie say energy security concerns are shifting policy responses, accelerating coal usage across key Asian and European markets, and delaying coal plant retirements.
Minister Ndejembi also thanked President Dr. Samia Suluhu Hassan for continuing to provide funding for the implementation of various energy projects.
He noted that the Ministry would continue to closely supervise the implementation of the projects to ensure citizens receive reliable electricity supply at all times.
In another development, the Minister directed the Managing Director of TANESCO to ensure that within one month, a higher-capacity transformer is secured and improvements are made to power transmission lines to ensure residents of Ngara District receive stable electricity while awaiting completion of the project.
“Residents of Ngara want reliable electricity without constant interruptions. Therefore, I direct the TANESCO Managing Director and your team to ensure we immediately secure a new high-capacity transformer to guarantee reliable power supply in Ngara District. I am giving you one month,” Ndejembi said.
He added that the project is expected to create jobs, attract investment, and promote agriculture, fishing, livestock farming, and industrial development in the Lake Zone, describing it as an important opportunity for residents of Kagera and neighbouring regions.
Minister Ndejembi also instructed TANESCO and the contractor to provide employment opportunities to residents in project areas within the districts of Ngara, Karagwe, and Missenyi so they can benefit economically and commercially from the project.
TANESCO Executive Director, Mr. Lazaro Twange, said the project would improve the reliability of electricity supply and stimulate economic activities in the Kagera Region.
“TANESCO has put in place plans to ensure that this project is completed on time and to the required standards,” Mr. Twange said. 
