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Natural gas and coal can both be used in power generation. Natural gas is very economical to transport over land, if pipelines have been constructed. Natural gas can be used as fuel in cars, buses and industrial equipment (forklifts in particular) and coal can not be.

Environmental concerns may limit the use of coal particularly near urban areas.

Natural gas is difficult to transport overseas, limiting its application to the general area were deposits are found. This is changing. There is a gas pipeline under the Mediterranean Sea to supply gas from Africa to Europe. Also, there is continued growth in liquefied natural gas (LNG), however this requires very large investments.

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