Southeast Asia’s Energy Crossroads

This report by Global Energy Monitor analyzes the tension between expanding gas infrastructure and adopting renewable energy in Southeast Asia. It warns that current gas expansion plans, requiring over $220 billion in investment, risk locking the region into volatile fuel dependencies and delaying the energy transition, despite the cost-competitiveness and vast potential of solar and wind power.

• Current gas expansion plans in Southeast Asia could double the region's operational gas-fired generation capacity, which is currently 102 GW, and increase LNG import capacity by 80%. These projects would require a total capital investment exceeding $220 billion, with over $180 billion for gas power capacity and $40 billion for LNG import and export infrastructure.
• Vietnam, the Philippines, Indonesia, Malaysia, and Thailand are the primary drivers of gas expansion, with more than 100 GW of gas power capacity, 47 mtpa of LNG import capacity, and 16.7 mtpa of LNG export capacity currently in development.
• Renewable energy is a viable and cost-competitive alternative to gas. Planned large utility-scale solar and wind capacity could generate 450 TWh/year, covering nearly two-thirds of the projected increase in energy demand by 2030. Benchmark levelized costs of electricity (LCOEs) for solar PV ($70–$95/MWh) and onshore wind ($105–135/MWh) are competitive with combined-cycle gas turbines ($80–125/MWh).
• International financing, including Just Energy Transition Partnerships (JETPs) and funding from Japanese and South Korean banks, is facilitating gas expansion. Four Japanese banks—JBIC, Sumitomo Mitsui, Mizuho Financial Group, and Mitsubishi UFJ—provided $9.7 billion in gas funding over the last decade, partly to create markets for excess Japanese LNG supply.
• Carbon capture and storage (CCS) is being promoted by oil and gas developers in Malaysia, Indonesia, and Thailand to make fossil fuel projects appear more environmentally friendly. The report notes that the largest offshore CCS project in the world is at the Kasawari Oil and Gas Field, but warns that such projects risk locking countries into fossil fuel consumption.
• Regional grid integration, such as the ASEAN Power Grid, is essential for managing the uneven distribution of renewable resources. Recent progress includes a 100 MW hydropower PPA between Laos and Singapore, and conditional approval for Singapore to import 2 GW of low-carbon electricity from Indonesia within five years.

APA

Ajaz, W., Joly, J., Langenbrunner, B., & Rozansky, R. (2024). Southeast Asia’s Energy Crossroads. Global Energy Monitor. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_SEAsiaGasReport_2024_11.pdf

Chicago

Ajaz, Warda, Julie Joly, Baird Langenbrunner, and Rob Rozansky. Southeast Asia’s Energy Crossroads. Global Energy Monitor, 2024. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_SEAsiaGasReport_2024_11.pdf.

Wikipedia

{{cite report |last1=Ajaz |first1=Warda |last2=Joly |first2=Julie |last3=Langenbrunner |first3=Baird |last4=Rozansky |first4=Rob |title=Southeast Asia’s Energy Crossroads |publisher=Global Energy Monitor |date=May 2024 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_SEAsiaGasReport_2024_11.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ajaz2024southeast, author = {Ajaz, Warda and Joly, Julie and Langenbrunner, Baird and Rozansky, Rob}, title = {{Southeast Asia’s Energy Crossroads}}, institution = {Global Energy Monitor}, year = {2024}, month = may, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_SEAsiaGasReport_2024_11.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }