Southeast Asia Keeps Building Gas Plants Despite Hormuz LNG Shock
Countries in Southeast Asia are still building natural gas-fired power plants despite the price inflation in gas caused by the Middle East war. Asian countries are also building more LNG import capacity, Global Energy Monitor reported. The net-zero think tank said there was some 100 GW in new gas-fired power generation capacity under construction across the region and 70 GW in LNG import…
Southeast Asian countries are continuing to construct natural gas power plants despite recent gas price hikes resulting from the Middle East conflict, according to Global Energy Monitor. The monitor reported that there are approximately 100 GW of new gas-fired power generation capacity under construction in the region, along with 70 GW worth of LNG import capacity.
Global Energy Monitor warned that expanding LNG import infrastructure may worsen exposure to supply disruptions and price volatility currently affecting the crisis. Despite the increased gas prices, Asia remains the largest consumer of liquefied natural gas and has been developing related infrastructure for years, which explains the growth in planned production capacity.
However, the war in the Persian Gulf has significantly reduced liquefied gas supply, leading to higher prices and reducing some Asian importers' interest in LNG. The report from Global Energy Monitor suggests that the war is testing Southeast Asia's gas expansion plans, as many projects depend on three assumptions: reliable and affordable LNG, and domestic gas as a backup when imports are limited. Whether these assumptions are sound remains to be seen as the war continues into its seventh month.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
