Asia-Pacific and Gas

The Asia-Pacific region continues to see strong, sustainable economic growth with steady development of the key economies in the region.

These growing economies and developing societies underpin strong growth in demand for energy. All sources of power generation are in high demand, from renewable sources to gas and coal. The Asian region is the only one globally with strongly growing coal consumption, as governments race to keep up with demand. Coal is a cheap source of power in the region, but also highly emissions intensive and a common cause of air pollution and resultant health issues.

Gas plays an important role in displacing coal as a source of power. SE Asia is naturally abundant in gas and has historically exported large volumes of Liquefied Natural Gas (LNG) to NE Asia. Increasingly gas is being consumed within SE Asia, with LNG trade providing nationally and globally supplied gas to the region’s electricity utilities.

For New Zealand, gas is a key ingredient in a determined national effort to strengthen energy security. The country has seen domestic gas supply rapidly decline at the same time as electricity demand rising significantly. Despite abundant renewable energy resources, New Zealand has a demonstrated need for a consistent electricity baseload from gas-power generation. In light of this, the government of New Zealand has taken proactive steps to reverse the decline in gas supply by actively engaging with industry players to encourage the realisation of gas opportunities. In July 2025, a ban on oil and gas exploration was reversed while in the same year the government launched its NZ$200m Gas Security Fund to boost declining domestic gas production. This, alongside the country’s flexible permit regime and streamlined decommissioning rules, provide clarity to investors and make it an attractive market to operate in. New Zealand is also preparing to import Liquefied Natural Gas (LNG), competing in expensive international markets for energy resources and highlighting the benefits of domestic resources.

Sunda Energy believes that the long-term outlook for gas in the SE Asia region is robust, and that the delivery of a locally sourced, affordable gas is not only a great business opportunity but also an important ingredient for the energy transition in the region.

• GDP growth trends expected to drive energy demand (including gas) through 2050
• GDP of 4 SE Asia economies expected to grow >3x by 2050 (Indonesia, Malaysia, Philippines & Vietnam)
• 186% increase expected in gas demand by 2050 in SE Asia, driven by climate ambitions and GDP growth
• Long term LNG price trends expected to reflect energy demand growth