Gas boom in Southeast Asia threatens green transition: report May 30, 2024

Natural gas emits less carbon dioxide than most other fossil fuels, but methane leaks from the gas sector are a key component of climate change © Mohd RASFAN / AFP

By AFP - Agence France Presse

Gas boom in Southeast Asia threatens green transition: report

Bangkok (AFP) - Southeast Asia is on course to vastly expand its capacity to import liquid natural gas and gas-fired power plants, threatening its transition to green energy, a report warned Thursday.

Existing plans in the region project a doubling of gas-fired power generation capacity and an 80% increase in LNG import capacity, said Global Energy Monitor (GEM), a US-based NGO.

Natural gas emits less carbon dioxide than most other fossil fuels and is therefore often considered a “transition fuel” that can help economies reduce emissions without sacrificing growth.

However, methane leaks from the gas sector are a key component of climate change, and the International Energy Agency (IEA) has warned that LNG should only have a “limited role” in moving away from coal.

“Beating coal on environmental grounds sets a low standard for natural gas, as lower-emission and lower-cost alternatives exist for both fuels,” the agency said in 2019.

The leaders of LNG expansion in the region are Vietnam, the Philippines, Indonesia, and Thailand, GEM said.

But the area already has enough large-scale solar and wind capacity under development to cover almost two-thirds of the projected increase in energy demand by 2030, GEM added.

However, it acknowledged that renewable energy potential is unevenly distributed across the region, with some countries better placed to harness wind or solar power than others.

And the regional grid infrastructure is also a barrier, with upgrades needed to facilitate the integration of renewables.

This could make LNG look more attractive, especially where existing coal or diesel plants can be converted.

“But increasing gas production is not a long-term solution,” said Warda Ajaz, project manager for GEM's Asia Gas Tracker.

“Meeting demand with cost-effective renewable sources insulates the region from volatile gas prices and is a greener way forward.”

The report warns that international finance is encouraging the expansion of gas capacity at the expense of renewables, partly by offering countries like Indonesia and Vietnam money to convert plants to LNG.

“Most of the gas infrastructure capacity under development in Southeast Asian countries has not yet entered the construction phase,” says the report.

“There is still time to change course and divert investments towards renewable resources and regional grid integration.”

© 2024 AFP