Indonesia's Coal Exports Sink 23% as Global Demand Heads for a Record

The world’s biggest exporter of thermal coal, Indonesia, is not benefiting from tightening global coal markets amid an Asian switch to coal from gas due to the Middle East crisis choking LNG supply. Indonesian thermal coal exports have been crimped this year by government production quotas and heightened uncertainties about Indonesia’s policy in the coal mining and exporting sectors. Earlier this year, the government slashed quotas for coal miners. In the middle of the year, authorities revised up some of the quotas, but uncertainties…

LNG Market Background

The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.

New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.

What to Watch

Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.