Southeast Asia's Gas-Fired Power Ambitions Hit Roadblock

Southeast Asia's ambitious plans to boost gas-fired power generation are facing significant challenges due to global shortages, volatile prices, and supply chain bottlenecks. According to a report by Wood Mackenzie, only a third of the combined planned gas-fired power capacity for six major Southeast Asian economies, Indonesia, Malaysia, Vietnam, Singapore, Thailand, and the Philippines, is expected to be operational by 2030.

The consultancy estimates that these countries will deliver only 14.9 GW of new gas-fired power capacity by the end of the decade, falling short of their combined target of 53 GW. The delays are attributed to a global shortage of gas turbines, volatile costs of liquefied natural gas (LNG), financing constraints, and infrastructure and equipment bottlenecks.

Wood Mackenzie's analysts warn that project execution is hindered by several critical enablers, including LNG infrastructure, project financing, and turbine availability. A bottleneck in any one of these areas can delay an entire project.