IEEFA: $67.8 billion in Asian LNG-to-power projects scrapped or stalled

· Oil & Gas · Indonesia · Vietnam

More than half of proposed LNG-to-power projects across four key Southeast Asian markets, worth a total of $67.8 billion, have been scrapped or stalled since 2021, the Institute for Energy Economics and Financial Analysis said in a report Thursday. Rising costs are raising risks for project financing, the think tank said. The finding challenges assumptions that Southeast Asia will anchor growing global LNG demand, and suggests developers and lenders face growing difficulty making gas-fired generation economics work in the region. It also matters for LNG exporters counting on Asian offtake to justify new supply projects.

Why it matters：If Southeast Asia's gas-fired pipeline is shrinking, LNG exporters planning new capacity lose a key growth market, and the region's power mix could tilt toward renewables and coal instead.

Key points

  • Over half of proposed projects in four Southeast Asian markets were scrapped or stalled.
  • Combined value of affected projects is $67.8 billion.
  • Rising costs are the cited driver of financing risk.

Sources (original reporting)

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