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Gas power buildout in Southeast Asia faces turbine and LNG constraints

Wood Mackenzie estimates the region’s six biggest power markets will deliver only 14.9 GW of planned gas-fired capacity by 2030, about a third of their 53 GW goal.

Reported · Written up by our desk · Energy

Southeast Asia is falling short of ambitious plans to add gas-fired power capacity to meet rising electricity demand and to replace some coal use, according to an energy consultancy cited by OilPrice.

Oil energy consultancy Wood Mackenzie says fuel availability, volatile LNG costs, financing constraints, and bottlenecks affecting infrastructure and equipment could push project costs higher and delay schedules by years.

WoodMac expects the region’s six largest power markets, Indonesia, Malaysia, Vietnam, Singapore, Thailand, and the Philippines, to deliver only a third of their combined planned gas-fired capacity by the end of the decade.

With a goal of installing 53 gigawatts of new gas-fired power by 2030, the consultancy sees only 14.9 GW likely to be achieved, prompting policymakers to rethink gas’s role and potentially increasing the near-term role of coal and the longer-term role of renewables in the electricity mix.

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