To reduce thermal coal import costs against inflation and secure energy supply, Japanese power utilities are trying to switch to lower quality grades or increase their import source. The measure includes adopting more cheaper low-to-mid-grade coal and looking for new supply sources from Africa and South America.

The interruption of Russian energy exports made a global supply cut, which further caused prices of coal and liquefied natural gas hit record high.

In 2022, Japan purchased thermal coal from Australia and Russia, accounting for 73% and 7% of total Japanese thermal coal purchases. In 2021, Australia and Russia accounted for 73% and 12%, respectively.