Gas expansion plans may slow energy transition


Around 65% of new gas-fired power capacity is being built in Asia. — Reuters

SINGAPORE: South-East Asian countries are planning to invest as much as US$220bil on a rapid natural gas expansion programme that could slow the region’s clean-energy transition, research by Global Energy Monitor (GEM) shows.

If all the planned projects go ahead, they could raise South-East Asia’s gas-fired power capacity by more than 100 gigawatts (GW), doubling the current level, and raise liquefied natural gas (LNG) imports into the region by 80%, according to data released by GEM yesterday.

“Energy demand is increasing across South-East Asia as economies grow, but ramping up gas production is not a long-term solution,” said Warda Ajaz, who runs GEM’s Asia Gas Tracker project, adding much of the increased demand could be met by renewables.

Analysts estimate that more than 1,000 companies are currently building new gas infrastructure around the world. Around 65% of new gas-fired power capacity is being built in Asia.

Vietnam alone has 44GW of gas power in development, as well as 12.1 million tonnes per year of LNG import capacity, GEM said. — Reuters

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