Southeast Asia Plans 100 GW-Plus Gas Power Expansion Despite LNG Risks

Thursday, September 24, 2026

Southeast Asia is developing more than 100 gigawatts of gas-fired power generating capacity and 70 million tons per annum of LNG import capacity, despite growing supply risks highlighted by the ongoing war in the Middle East, data from US think tank Global Energy Monitor showed on Thursday.

"The continued expansion of LNG import infrastructure risks deepening exposure to the same supply disruptions and price volatility the crisis has brought to the fore," GEM said in a research report.

The pipeline of LNG power generation and import terminal projects in Southeast Asia represents a total investment of $160 billion, GEM said.

The build-out assumes that LNG imports will remain available and competitive, and that domestic supplies can fill the gap when shipments are disrupted.

However, blockades in the Strait of Hormuz have "sharpened the supply risks that come with greater dependence on imported LNG … with the impact falling particularly heavily on price-sensitive markets in emerging Asia and Africa," it added.

"The consequences of the conflict have not yet translated into a fundamental change in Southeast Asia's infrastructure trajectory," said Warda Ajaz, who manages GEM's Asia Gas Tracker.

"But the conflict has exposed the fragility of some of the assumptions supporting that expansion," Ajaz said.

The expansion in import capacity was already facing "significant headwinds" even before the Middle East conflict, and over 35 GW of gas power capacity was shelved or cancelled in 2025.

GEM data also showed that 65 mtpa of LNG import capacity had been shelved or cancelled by September last year.

Thailand and Vietnam have both started to rethink their strategies and reduce their exposure to LNG supply risks.

The Philippines has also shelved or cancelled 11.2 GW of gas power capacity from H2 2025 to H1 2026, though 13.8 GW remained in development, GEM data showed.


(Reuters - Reporting by David Stanway; Editing by Kim Coghill)

Categories: Natural Gas FLNG Floating Production LNG Industry News Activity Asia Oil and Gas

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