South-East Asian countries are embarking on a massive natural gas expansion initiative, poised to invest a staggering US$220 billion, a report from the Global Energy Monitor (GEM) reveals. This ambitious endeavor could potentially impede the region’s transition towards cleaner energy sources.
GEM’s research indicates that if all proposed projects materialize, South-East Asia’s gas-fired power capacity could surge by over 100 gigawatts (GW), effectively doubling the current capacity. Additionally, liquefied natural gas (LNG) imports into the region could skyrocket by 80%, according to data unveiled by GEM.
Warda Ajaz, overseeing GEM’s Asia Gas Tracker project, cautioned against over-reliance on gas, stating, “Energy demand is escalating across South-East Asia with economic growth, but prioritizing gas production isn’t a sustainable long-term strategy.” She emphasized the potential of renewables to fulfill much of the increased energy demand.
Analysts highlight a global trend, with over 1,000 companies currently engaged in constructing new gas infrastructure, with 65% of new gas-fired power capacity concentrated in Asia.
Vietnam emerges as a focal point, with plans for 44GW of gas-powered capacity under development alongside 12.1 million tonnes per year of LNG import capacity, as reported by GEM.
The gas expansion raises concerns about its impact on efforts to transition to cleaner energy sources, highlighting the need for a balanced approach to meet rising energy demands while addressing environmental sustainability goals.
