IEEFA: $67.8 Billion in Asian LNG Power Projects Scrapped or Stalled
More than half of proposed LNG-to-power projects, worth a total of $67.8 billion, in four key Southeast Asian markets have been either scrapped or stalled since 2021, amid rising costs that raise risks for…
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More than half of proposed LNG-to-power projects, worth a total of $67.8 billion, in four key Southeast Asian markets have been either scrapped or stalled since 2021, amid rising costs that raise risks for project financing, the Institute for Energy Economics and Financial Analysis (IEEFA) said in a report on Thursday.
The five-year analysis of $109.2 billion worth of proposed LNG-fired power projects and another $21 billion worth of planned LNG import terminals in the Philippines, Vietnam, Thailand, and Bangladesh showed that as many as 49 proposed LNG-fired power plants and 22 regasification terminals were canceled or showed no notable progress between 2021 and 2026. These stalled or cancelled projects have an estimated total value of $67.8 billion— nearly 4.5 times the value of projects completed during the same period, IEEFA said.
“Recent developments in fuel, equipment, and currency markets have exacerbated execution risks for LNG-to-power projects in emerging Asian economies while weakening the revenue certainty needed to secure project financing,” commented Sam Reynolds, co-author of the report and IEEFA Asia’s LNG/Gas Research Lead.
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