Southeast Asia’s LNG surge faces price swings and infrastructure shortfalls

Southeast Asian countries are expanding LNG imports, with plans for 70 MTPA of new terminals and over 100 GW of gas-fired generation, as demand is expected to rise more than 20 % in 2026, fueled by booming data centres, population growth and falling domestic gas output. Petronas aims to boost its global LNG capacity to 55 MTPA by 2035, while Singapore LNG Corp’s CEO calls LNG a long-term energy staple. However, recent disruptions in the Strait of Hormuz and a 45 % year-on-year rise in Asian spot LNG prices have highlighted price volatility, prompting concerns that higher costs could push cost-sensitive utilities back to coal.

Infrastructure bottlenecks, especially a global shortage of gas turbines and lengthy delivery lead times, further limit the region’s ability to meet its plans. Analysts suggest a balanced approach, pairing LNG with renewable and biomethane projects to hedge against geopolitical shocks and support the energy transition.