Morgan Stanley: Asia may shift to coal to address LNG supply risks.

Morgan Stanley analysts stated in a report that, in order to ensure uninterrupted power supply, Asian economies may consider coal as an important alternative energy to liquefied natural gas. South Asia still has available coal-fired flexible production capacity, with some new coal-fired power plants recently built in the region. Analysts estimate that around 20% of Asia's electricity supply relies on liquefied natural gas from the Middle East. The interruption of liquefied natural gas supply due to conflicts in Iran is crucial for data centers and electrical grids in the region. India and Thailand have the highest dependence on spot liquefied natural gas, while the impact of fuel supply on utilities in Malaysia and Indonesia may be relatively limited. The rise in prices of liquefied natural gas may widen the electricity price spread for efficient operators, especially in wholesale electricity markets like the Philippines and Singapore.