Middle East War Drives Gas Price Inflation, Impacts Southeast Asian Energy Planning

The Middle East war is causing gas price inflation, according to reports from Global Energy Monitor. The organization noted that Southeast Asian countries are continuing to build natural gas-fired power plants and increasing LNG import capacity to cope with the crisis. Currently, there is 100 GW of new gas-fired power generation capacity under construction across the region, alongside 70 GW in LNG import capacity.

The geopolitical instability in the Middle East has led to a sharp drop in available liquefied gas supply, pushing prices up and testing the viability of long-term energy strategies for Southeast Asia. While the region could boost domestic natural gas production to add around 62 bcm/y by 2035, this development takes years and may not reach domestic power markets.