Korean Firms Eye Southeast Asia's Booming Oil and Gas Market
Small and mid-sized Korean equipment makers are expanding their business into Southeast Asia's oil and gas development market. As companies seek to reduce their reliance on the Middle East and other specific regions due to geopolitical risk, they are turning to Malaysia, Indonesia, and other countries for new opportunities.
In partnership with local governments, these smaller firms are pursuing overseas expansion. Gyeongsangnam-do selected six exporting small and mid-sized energy companies in May to participate in the 2026 Oil and Gas Asia (OGA) exhibition in Malaysia. The selected companies produce equipment and parts used at petrochemical and gas plant sites.
The industry is focused on Malaysia because oil and gas development projects there continue at a steady pace. Offshore oil and gas field development is proceeding particularly around the Sarawak and Sabah regions, with the related market expected to expand. Malaysia's oil and gas market is estimated at $9.66 billion in 2026, up from $9.16 billion in 2025.
The growth of the energy sector in Southeast Asia is also opening new business opportunities for green tech companies in areas such as carbon capture and treatment to address carbon dioxide emissions. Airrane, a specialist in gas separation membranes, was recently selected for a feasibility study support program for international emissions reduction projects run by the Korea Overseas Infrastructure & Urban Development Corporation (KIND) under the Ministry of Land, Infrastructure and Transport.