Hormuz Disruptions Stress-Test Southeast Asia's $160 Billion Gas Expansion

Disruptions in the Strait of Hormuz have put Southeast Asia's massive gas expansion project to the test. According to Global Energy Monitor, around $160 billion worth of gas-fired power and liquefied natural gas (LNG) import capacity is still in development across the region.

The report highlights that more than 100 GW of gas-fired power capacity remains under construction, with the overall scale of planned projects staying above 100 GW despite individual developments moving in and out of the pipeline. Meanwhile, LNG import capacity has increased from approximately 47 million tonnes per annum (mtpa) in 2024 to around 70 mtpa.

While domestic gas production could provide a buffer against tightening global LNG markets, Global Energy Monitor notes that it would not eliminate Southeast Asia's reliance on imported supplies. The organisation identified at least 20 gas fields that could add approximately 62 billion cubic metres per year of production capacity by 2035, but developing new supply takes time and does not guarantee that the gas will reach domestic power markets.

Global Energy Monitor project manager Warda Ajaz stressed that 'Conflict in the Strait of Hormuz is stress-testing Southeast Asia's plans for gas expansion, but its effects are not playing out uniformly across the region.' She noted that 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.