$160 Billion Gas Buildout Faces Headwinds in Southeast Asia
More than $160 billion worth of gas-fired power and liquefied natural gas (LNG) import capacity is currently under development in Southeast Asia, according to Global Energy Monitor.
The Strait of Hormuz disruptions have driven up prices and caused governments and developers to reconsider their reliance on imported gas. The region's overall scale of planned projects remains above 100 GW despite individual developments moving in and out of the pipeline.
LNG import capacity is increasing, with approximately 70 million tonnes per annum (mtpa) expected by 2025, up from around 47 mtpa in 2024. However, this raises concerns about supply disruptions and price volatility in the region.
Global Energy Monitor notes that domestic gas production could provide some countries with a buffer against tightening global LNG markets, but it would not eliminate Southeast Asia's reliance on imported supplies.