Plans for a massive build-out of gas-fired power plants and liquefied natural gas terminals in South-east Asia risks locking in decades of costly polluting energy.
The US$220 billion in planned spending could double the region’s gas-fired power capacity and boost LNG import capacity by 80 per cent. Spot LNG prices hit a record US$70 per metric million British thermal units in August 2022, following Russia’s invasion of Ukraine, pricing some Asia buyers out of the market as wealthier European nations snapped up LNG cargoes. Spot prices are currently around US$12 per mmBtu.
He said gas power projects are facing more scrutiny on their economics and climate impacts. And the cost of expensive LNG – and electricity – will have to be borne by consumers or the government. It adds that there are about 72GW of solar and 150GW of wind power projects in the pipeline, with no guarantee that all of this will be built.
Green energy projects in the pipeline in South-east Asia could match nearly two-thirds of the region’s projected energy demand increase for 2030. Pictured is the Bac Lieu wind farm Vietnam’s in Nha Mat Ward. PHOTO: CHI QUOC FOR THE STRAITS TIMES Despite the climate and financial risks, funding continues to flow towards LNG projects in the region and major supplying nations, such as Australia, the US and Qatar.