Rising costs have forced the cancellation or delay of $67.8 billion in LNG-to-power projects across four key Asian markets, casting doubt on long-term regional gas demand forecasts.
An IEEFA report dated Thursday finds that more than half of proposed LNG-to-power projects worth $67.8 billion across the Philippines, Vietnam, Thailand and Bangladesh have been scrapped or stalled since 2021, out of $109.2 billion analysed. Weaker Asian LNG-fired power build-out points to slower growth in gas import demand, a mild negative for gas prices. The report covers proposals, not current consumption, so near-term price impact is limited.
The Institute for Energy Economics and Financial Analysis reports that over half of proposed LNG-to-power projects in the Philippines, Vietnam, Thailand, and Bangladesh have been abandoned or delayed since 2021. Rising development costs and financing hurdles are driving the shift, signaling a potential slowdown in regional gas demand growth.
The IEEFA report specifically highlights the Philippines, Vietnam, Thailand, and Bangladesh as the markets where these projects have been scrapped or stalled.
The primary drivers are rising development costs and increased risks associated with project financing.