Natural gas demand in Southeast Asia to surpass oil and coal by 2050

Driven by economic growth and renewable energy limitations, natural gas consumption in Southeast Asia is expected to nearly double by 2050, according to Wood Mackenzie.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €2/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

Natural gas consumption in Southeast Asia is projected to grow faster than oil and coal over the coming decades, according to a report by energy consultancy Wood Mackenzie. The share of natural gas in the region’s primary energy mix could reach up to 30% by 2050, supported by rapid economic expansion and a growing focus on energy security.

The Southeast Asia Gas Strategic Planning Outlook report forecasts a compound annual growth rate (CAGR) of 3.1% for gas demand until 2035. This increase is primarily driven by the expansion of data centres, gas-based power generation, and the structural limitations of intermittent renewable energy sources. Wood Mackenzie projects that regional gas-fired power generation capacity will double, while consumption will rise by nearly 89.5% from 2025 to 2050.

LNG imports to exceed exports by 2032

The region is expected to become a net importer of liquefied natural gas (LNG) by 2032. Wood Mackenzie anticipates LNG demand will rise by 182% over the next decade. This shift could position Southeast Asia among the fastest-growing LNG markets globally by 2050.

Countries such as Indonesia and Malaysia are focusing on boosting domestic production to meet increasing local demand, according to Raghav Mathur, principal gas and LNG analyst at Wood Mackenzie. Newly commissioned and recently discovered fields are expected to sustain output through the late 2020s. Continued exploration, particularly in frontier areas, will be critical to maintaining supply beyond 2035.

Critical infrastructure and LNG uncertainties

LNG affordability remains a challenge to widespread adoption due to its high cost. The report notes that government support through subsidies, tax incentives, or favourable regulations will be essential to ensure the viability of LNG-to-power projects. Securing long-term Power Purchase Agreements (PPAs) is also highlighted as a key requirement.

Wood Mackenzie identifies an urgent need for multiple Floating Storage Regasification Units (FSRUs) by 2030 to support this growth path. However, uncertainty surrounding the availability of these facilities could constrain expansion plans. Identifying industrial partners and securing financing for infrastructure development remain central to the region’s gas strategy execution.

Giant discoveries are transforming the Black Sea into an alternative to Russian gas, despite colossal technical challenges related to hydrogen sulfide and Ukrainian geopolitical tensions.
The Israeli group NewMed Energy has signed a natural gas export contract worth $35bn with Egypt, covering 130bn cubic metres to be delivered by 2040.
TotalEnergies completed the sale of its 45% stake in two unconventional hydrocarbon concessions to YPF in Argentina for USD 500 mn, marking a key milestone in the management of its portfolio in South America.
Recon Technology secured a $5.85mn contract to upgrade automation at a major gas field in Central Asia, confirming its expansion strategy beyond China in gas sector maintenance services.
INPEX has finalised the awarding of all FEED packages for the Abadi LNG project in the Masela block, targeting 9.5 million tonnes of annual production and involving several international consortiums.
ONEOK reports net profit of $841mn in the second quarter of 2025, supported by the integration of EnLink and Medallion acquisitions and rising volumes in the Rockies, while maintaining its financial targets for the year.
Archrock reports marked increases in revenue and net profit for the second quarter of 2025, raising its full-year financial guidance following the acquisition of Natural Gas Compression Systems, Inc.
Commonwealth LNG selects Technip Energies for the engineering, procurement and construction of its 9.5 mn tonnes per year liquefied natural gas terminal in Louisiana, marking a significant milestone for the American gas sector.
Saudi Aramco and Sonatrach have announced a reduction in their official selling prices for liquefied petroleum gas in August, reflecting changes in global supply and weaker demand on international markets.
Santos plans to supply ENGIE with up to 20 petajoules of gas per year from Narrabri, pending a final investment decision and definitive agreements for this $2.43bn project.
Malaysia plans to invest up to 150bn USD over five years in American technological equipment and liquefied natural gas as part of an agreement aimed at adjusting trade flows and easing customs duties.
The restart of Norway’s Hammerfest LNG site by Equinor follows over three months of interruption, strengthening European liquefied natural gas supply.
Orca Energy Group and its subsidiaries have initiated arbitration proceedings against Tanzania and Tanzania Petroleum Development Corporation, challenging the management and future of the Songo Songo gas project, valued at $1.2 billion.
Turkey has begun supplying natural gas from Azerbaijan to Syria, marking a key step in restoring Syria’s energy infrastructure heavily damaged by years of conflict.
Canadian group AltaGas reports a strong increase in financial results for the second quarter of 2025, driven by growth in its midstream activities, higher demand in Asia and the modernisation of its distribution networks.
Qatar strengthens its energy commitment in Syria by funding Azeri natural gas delivered via Turkey, targeting 800 megawatts daily to support the reconstruction of the severely damaged Syrian electricity grid.
Unit 2 of the Aboño power plant, upgraded after 18 months of works, restarts on natural gas with a capacity exceeding 500 MW and ensures continued supply for the region’s heavy industry.
New Zealand lifts its 2018 ban on offshore gas and oil exploration, aiming to boost energy security and attract new investment in the sector.
In response to the energy transition, Brazil’s oil majors are accelerating their gas investments. It is an economic strategy to maximise pre-salt reserves before 2035.
Tucson Electric Power will convert two units of the Springerville power plant from coal to natural gas by 2030, ensuring production continuity, cost control, and preservation of local employment.