Southeast Asia's Gas-Fired Power Plant Push Continues Amid Rising Fuel Prices
Countries in Southeast Asia are continuing to build natural gas power plants despite rising fuel prices due to the war in the Middle East. According to Global Energy Monitor, new gas-fired power plants with a combined capacity of about 100 GW are under construction in the region.
Liquefied natural gas (LNG) import capacity is also being expanded in Asia, with approximately 70 GW expected to be built. However, Global Energy Monitor warned that this could increase dependence on supply disruptions and price volatility highlighted by the current crisis.
The think tank noted that Southeast Asia could reduce its dependence on imported fuel by increasing its own natural gas production. At least 20 fields have been identified that could potentially add about 62 billion cubic meters of annual production capacity by 2035, but developing new fields takes years and additional gas volumes may not reach domestic electricity markets.
The region's plans for gas expansion are based on three assumptions: LNG will be reliably available, its price will remain competitive compared with alternatives, and domestic production will be able to serve as a backup source if imports are restricted. However, the current crisis has led to a sharp reduction in available LNG volumes and a significant rise in prices, weakening the interest of some Asian importers in purchasing liquefied gas.