$160B Southeast Asia Gas Buildout Proceeds Amid Hormuz Disruptions

Southeast Asia is moving forward with its massive $160 billion gas buildout, despite disruptions in the Strait of Hormuz exposing supply risks and price volatility. According to Global Energy Monitor (GEM), over 100 gigawatts of gas-fired power capacity remains in development across the region, with roughly 106 GW still planned.

The expansion of liquefied natural gas (LNG) import capacity has also increased to about 70 million tonnes per annum (mtpa), from about 47 mtpa in 2024. However, GEM warns that this increase could make Southeast Asia more vulnerable to supply disruptions and price fluctuations.

Warda Ajaz, Project Manager of the Asia Gas Tracker at GEM, noted that while some countries are moving away from gas, others are pressing ahead with gas expansion. She also highlighted the risks associated with relying on imported LNG, stating 'Import capacity does not guarantee secure LNG supply, access to LNG does not guarantee affordability, and domestic gas provides a meaningful buffer only where sufficient supply is already available.'

GEM identified at least 20 domestic gas fields that could add about 62 billion cubic metres per year of production capacity by 2035. However, new domestic gas supply can take years to develop and may not supply domestic power markets.