Southeast Asia’s LNG Expansion and Climate Concerns
Southeast Asia, led by Thailand, Indonesia, and Singapore, currently hosts liquefied natural gas (LNG) facilities operating at a capacity of 45 million tonnes per annum (Mtpa). These facilities collectively emit greenhouse gases equivalent to about 30 coal plants annually. Expansion Projections The region’s LNG capacity is expected to nearly double to 80 Mtpa by 2040. […]
Southeast Asia, led by Thailand, Indonesia, and Singapore, currently hosts liquefied natural gas (LNG) facilities operating at a capacity of 45 million tonnes per annum (Mtpa). These facilities collectively emit greenhouse gases equivalent to about 30 coal plants annually.
Expansion Projections
- The region's LNG capacity is expected to nearly double to 80 Mtpa by 2040.
- Proposed projects, mainly in Thailand, the Philippines, and Vietnam, aim to contribute to this expansion.
"If allowed to continue, expanded LNG use stands to thwart efforts to keep global warming below 1.5°C," read a report by ARE. Growing investment in LNG by Southeast Asian nations risks pushing the world further beyond this critical target.
Last year, Thailand inaugurated its new US$900 million regasification facility, adding 7.5 Mtpa to global LNG consumption.
Philippines and Vietnam's Entry into LNG
- The Philippines received a shipment in April to fuel its 1,200 MW Ilijan power plant.
- Vietnam's first imports of LNG arrived with a shipment of 70,000 tonnes of Indonesian LNG.
- Both nations are set to expand their LNG import capacity by 7.8 Mtpa through new terminals.
Energy Transition Challenges
- The Philippine government promotes renewable energy but continues to approve LNG projects as a transitional fuel.
- Vietnam aims to reduce reliance on coal but plans to more than double its reliance on natural gas.
Concerns and Calls for Transition
- LNG's carbon intensity is on par with coal, highlighting the necessity of investing in low-carbon sources.
- IEA suggests that LNG production must peak in 2025 and decline to 150 Mtpa by 2040 to achieve its 2050 net zero target.
- Shell's outlook forecasts a significant rise in LNG demand, far exceeding IEA's sustainable levels.
Environmental Impact Considerations
- While natural gas emits less carbon dioxide than coal, methane emissions throughout its lifecycle raise climate concerns.
The expansion of LNG infrastructure in Southeast Asia underscores the need for a balanced energy transition towards low-carbon sources to mitigate climate change effectively.
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