ASEAN Predicted to Be Net Importer of Natural Gas by 2025

Jakarta. ASEAN is forecast to be importing more natural gas than it exports as soon as 2025, thus potentially affecting the region’s energy security, according to an expert.
"ASEAN is projected to become a net importer of natural gas by 2025,” Nuki Agya Utama, the executive director of the think-tank ASEAN Center for Energy (ACE), said at a press briefing in Jakarta on Thursday.
ACE’s projections for ASEAN’s high natural gas imports took into account the region’s lack of significant additions to the existing production infrastructure and continuous use of fossil fuel. Nuki added: “ASEAN being a net gas importer is bound to happen sooner or later.”
According to Nuki, rising gas imports will likely lead to soaring energy prices. The further the country that ASEAN is buying its natural gas from, the higher the logistics costs will be. This eventually affects the energy prices within the region.
ASEAN in 2002 inked a memorandum of understanding (MoU) for an interconnected gas pipeline infrastructure. The project, popularly known as the Trans-ASEAN Gas Pipeline, has connected more than 3,600 kilometers of gas pipelines across member states. The connections are bilateral in nature such as the South Sumatra-Singapore linkage.
“We have developed the Trans-ASEAN Gas Pipeline and we are working to expand the project. We need to strengthen intra-ASEAN cooperation. We must not let political instability affect our regional cooperation,” Nuki said.
“It is a shame if ASEAN becomes a net gas importer because member states like Indonesia and Myanmar are abundant [in natural gas]. We should uphold collaboration and interconnectivity. [...] Energy can be a catalyst for peace if we uphold fair energy trading and interconnectivity, among others,” Nuky also told reporters.
ACE’s freshly launched 2023 ASEAN Oil and Gas Updates report revealed that the Southeast Asian bloc was still a net gas exporter last year. Its gas exports last year totaled 51 million tons, of which 80 percent went to non-ASEAN regions. Countries outside ASEAN supplied 11.8 million tons of natural gas to the regional grouping last year. Australia supplied 46 percent of ASEAN's total natural gas imports that came from outside the region. According to ACE, Thailand and Singapore are shipping in more natural gas than they export.
Indonesia’s natural gas reserves stood at 1.03 trillion cubic meters as of 2022, marking a 14.2 percent decline from 1.2 trillion cubic meters the previous year, the report showed. Natural gas represented 21 percent of ASEAN's energy supply in 2020.
Indonesia is this year’s ASEAN Chair.
ACE and the Indonesian Mineral Resources Ministry will host the ASEAN Energy Business Forum (AEBF) in Bali on August 24-26. This event will gather business delegates in the energy sector, be it from ASEAN and beyond, to exchange views on the region’s energy landscape. It is also likely that the forum will result in business partnerships within the energy sector.
Read More: ASEAN Has Great Potential to Become Solar PV Manufacturing Hub
Tags: Keywords:POPULAR READS
No Need to Fight Over who Should Be Next President: Jokowi
The differences in opinions on who should be the next Indonesian president must not lead to cracks in the society, according to Jokowi.Pertamina Seeks to Be Market Leader in Indonesia’s Carbon Trading
PNRE is in charge of becoming the trader within the Pertamina Group, according to Nicke as Indonesia launches its carbon exchange.South Korea Vows to Retaliate Against Any North Korean Provocations
The show of force comes as concerns grow that North Korea is seeking Russian help in expanding its nuclear arsenal.Indonesia's Carbon Exchange Holds Rp 3,000t Potential: Jokowi
Indonesia has just launched its first ever carbon exchange which would facilitate the trading of carbon credit trading between emitters.UK’s Road Inspection App SmartVision Eyes Indonesian Market
SmartVision's technology collects and analyzes road defects and assets, including potholes and crackings.Popular Tag
Most Popular

