Coal Stocks Surge after Gas Crisis Hits European Countries, Forcing to Seek Alternative

Thai coal stocks surged on Tuesday as the European energy crisis intensified over shortage of gas supply that could force consumers to return to burning coal for power.

As of 10:51 BKK time on August 23, 2022, the share price of Banpu Public Company Limited (SET: BANPU) rose THB0.60 or 4.32% per share to THB14.50 per share.

Asia Green Energy Public Company Limited (SET: AGE) increased THB0.10 or 2.44% to THB4.20 per share.

The Lanna Resources Public Company Limited (SET: LANNA) gained THB1.50 or 6.70% to THB23.90 per share.


European countries are struggling through unnatural heat in the summer, causing power consumption even higher than its previous year. Meanwhile, gas inventories have yet to be fully filled due to supply shortage from the Russian site. The main pipeline to Europe, Nord Stream 1, is running at 20% of its max capacity and is expected to temporarily shut down on August 31 – September 2 for short maintenance as the region will soon enter its winter season that households would seek more warmth that the government could not fully provide using natural gas alone.

Alternate supplies are required for replacement, and one of the most efficient sources of power is none other than burning what the bloc has been trying to fade from, coal.

Newcastle coal futures is trading at $418/ton, just slightly shy from its record high of $432/ton made a little more than a month ago on July 13.


Meanwhile, U.K. inflation is expected to break 18% in January next year, according to an estimate by Citi economists. Meanwhile, the retail price index also got a revision to 21%. The estimate is based on the assumption of a £300 policy offset applied to household energy bills from October through to 2024 amid an upcoming increase in energy price cap.