Southeast Asia Keeps Building Gas Plants Despite Hormuz LNG Shock

Countries in Southeast Asia are still building natural gas-fired power plants despite the price inflation in gas caused by the Middle East war. Asian countries are also building more LNG import capacity, Global Energy Monitor reported. The net-zero think tank said there was some 100 GW in new gas-fired power generation capacity under construction across the region and 70 GW in LNG import capacity. “The continued expansion of LNG import infrastructure risks deepening exposure to the same supply disruptions and price volatility the crisis…

LNG Market Background

The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.

New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.

What to Watch

Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.