SE Asia and Gas

SE Asia 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.

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