Global Gas Crunch Restores Profitability to European Coal Plants Ahead of Winter

Key Facts

1European coal-fired power plants have become profitable again as LNG supply costs soar.

2LNG supply is barely moving through the Strait of Hormuz, pushing gas prices to their highest levels since the 2022-2023 crisis.

European coal-fired power plants have become profitable again as LNG supply costs soar. OilPrice.com reported that LNG supply is barely moving through the Strait of Hormuz, pushing natural gas prices to their highest levels since the 2022-2023 crisis.

The global supply crunch has forced a return to coal-fired generation in Germany and Poland to stabilize energy grids ahead of the winter season. This shift in energy economics follows a period of rising costs, with wholesale prices in Germany recorded at an 8.7% year-on-year increase as of October 14, 2026.