Projects worth about $160 billion in investment representing gas power capacity of about 106 gigawatts and liquefied natural gas import capacity of around 70 million tonnes per annum remain in development across Southeast Asia, non-profit research firm Global Energy Monitor said in a study published Thursday.
"The crisis 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. While some countries appear to be moving away from gas, others seem to be pressing ahead," the study said.
The region's LNG import capacity under development has increased from about 47 mtpa in 2024. Meanwhile, disruption in supplies from the Strait of Hormuz caused a sharp rise in LNG prices in Asian markets this year, highlighting the risks of exposure to supply disruptions and price volatility due to the reliance on LNG, the study said.
While domestic gas may ease the shock in some countries, with at least 20 fields projected to add about 62 billion cubic metres per year of production capacity by 2035, it is unlikely to remove the region's growing reliance on imported LNG.
Developing new supplies takes years and they may not reach domestic power markets. Thus, increasing domestic gas output in the short term offers no quick or guaranteed alternative for countries vulnerable to tighter global LNG supplies, the study added.