Southeast Asia could witness a significant uptick in gas project activity in 2025, with the region on track to approve the highest number of final investment decisions (FIDs) in over a decade. This potential resurgence, detailed in a new report by Global Energy Monitor (GEM), signals a possible 18% increase in regional gas output.
According to the report published on Wednesday, up to 13 new gas projects may secure financing this year, supplementing the one already approved. If all proposed developments proceed, they could collectively contribute more than 20 billion cubic metres in additional annual production capacity.
Despite mounting pressure to transition away from fossil fuels, Southeast Asia continues to lean heavily on natural gas as a core energy source. The region, home to over 500 million people, faces considerable financial and policy-related constraints that have hindered progress toward clean energy targets. Notably, Southeast Asia is on course to fall short of its 2025 renewable energy goal of 23% production share.
Between 2020 and 2024, only 10 gas projects were approved, highlighting a potential acceleration in fossil fuel investment this year. New units proposed across Indonesia, Malaysia, Vietnam, Brunei and Myanmar could significantly expand the region’s gas infrastructure and further entrench reliance on fossil fuels.
“These developments would have a significant lifespan and would lock in gas as a substantial component of the region’s energy mix,” the report stated. “Given that companies and governments are unlikely to abandon gas assets before fully exhausting reserves, the long-term implications for the regional energy transition are considerable.”
However, GEM noted that FID timelines are historically subject to delays, meaning the full extent of this year’s project rollouts remains uncertain.
–Bloomberg
