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from REGIONAL and INTERNATIONAL
Published online by Cambridge University Press: 21 October 2015
INTRODUCTION
Southeast Asia is diverse, including countries such as Indonesia — a large and resource rich developing country of some 13,000 islands stretching across 5,000 kilometres, Singapore — a highly developed city-state economy that imports all its energy resource needs, Cambodia — a country with low energy intensity developing from a very low economic base and Vietnam which, while still at an early stage of economic development, is experiencing double- digit growth in its energy demand and has a strong appetite for gas. In many Southeast Asian economies, urbanization is occurring rapidly and several countries are building manufacturing bases and looking to develop industries, all of which results in more gas being required to supply power demand, city gas and industrial gas applications.
Natural gas fulfils about one quarter of the primary energy needs in the region. Gas consumption in Southeast Asia was about 127 billion cubic metres (bcm) in 2005 and the majority of the gas consumed in the region, of the order of 54 per cent, was used for power generation. Regional gas consumption is expected to increase to more than 200 bcm over the next ten years, with the proportion of gas used for power expected to increase steadily from current levels. Gas offers a clean, flexible and often economic fuel option.
In addition to the growing use of gas for power generation, countries such as Thailand and Indonesia are also growing their industrial and city gas markets, while in Brunei, the Philippines and Vietnam, gas is used almost entirely for power. Malaysia has grown its gas-fired power generation and now about 70 per cent of power is generated from gas and it has constructed a Peninsular Gas Utilization grid to extend gas supply to industry and commerce. In Indonesia there is potential for significantly increased demand for gas beyond what it is currently able to supply. Indonesia is at a critical point where more gas is required to support both domestic development for power and industrial use and to maintain its liquefied natural gas (LNG) exports.
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