According to Global Energy Monitor, Southeast Asia may witness the most final investment decisions on gas projects this year in ten years, potentially increasing output by 18%.
Researchers said in a report released on Wednesday that up to 13 new gas projects might receive funding in 2025, in addition to the one already approved this year. According to the research firm, if all plans progress, an annual production capacity of over 20 billion cubic meters could be achieved.
Southeast Asia, with a population exceeding half a billion, continues to heavily rely on fossil fuels, casting doubts on the ability of nations to adhere to phase-out deadlines because of financial constraints and inconsistent global commitment to climate change. The area is expected to fall short of achieving its renewable energy production target of 23% by the year's end.
According to GEM's data, Southeast Asia sanctioned merely 10 projects from 2020 to 2024, suggesting that fossil fuel financing could be increasing this year. The units, located in Indonesia, Malaysia, Vietnam, Brunei, and Myanmar, aim to enhance gas production throughout the region, complicating the shift for countries toward cleaner energy alternatives.
“Since companies and countries are unlikely to abandon gas developments before reserves are fully depleted,” the researchers said in the report, “these developments would have a significant lifespan and would lock in gas as a substantial component of the region’s energy mix.”