Strong growth in natural gas generation seen in Asia
This will mostly be driven by Southeast Asian markets.
Strong growth in natural gas is expected in Asia as Fitch Solutions projected gas generation to increase by over 51% to 774 terawatt-hours between 2022 and 2031.
This is higher than the growth rates forecast in the Middle East and North Africa (31%), Latin America (26.7%), and Sub-Saharan Africa (25%).
“The drivers vary by region and market, but common threads include the improving efficiency of gas-fired power plants, ongoing decarbonisation efforts, and attempts to diversify the power supply away from alternatives such as hydropower, coal, and oil,” the report read in part.
“Although the LNG-to-power markets remain nascent, it shows a lot of potential worldwide, in particular in markets lacking adequate domestic gas supplies and where the options for pipeline gas are limited.”
In the Asia-Pacific region, the key drivers will be Southeast Asian markets, such as Vietnam, the Philippines, Indonesia, and Myanmar.
LNG-to-power projects are also gaining ground as it addresses increasing energy demand whilst still curbing emissions growth.