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Examining Cracks in Emerging Asia's LNG-to-Power Value Chain

December 01, 2021
Sam Reynolds and Grant Hauber

Key Findings

Emerging Asia is widely anticipated to be one of the largest growth markets for global LNG demand, but a granular project-by-project and country-level analysis by IEEFA of seven emerging Asian markets reveals that only a small fraction of LNG related infrastructure proposals will be viable.

The analysis finds that, across the country studies, 62% of proposed LNG import terminal capacity and 66% of gas-fired power capacity is unlikely to be built due to fundamental project, country-level, and financial market constraints.

The liquefied natural gas (LNG) industry has framed LNG as a cheap, reliable "bridge fuel" to help countries reduce coal consumption and transition to cleaner renewable energy. For many project developers and countries in emerging Asia, however, LNG is a bridge that may never be built.

Sam Reynolds

Sam Reynolds, an energy finance analyst with the Institute for Energy Economics and Financial Analysis (IEEFA), focuses on the economic, financial, and climate risks associated with natural gas and liquefied natural gas (LNG) infrastructure developments in emerging Asia. 

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Grant Hauber

Grant provides energy and financial market analysis for IEEFA’s Asia Pacific team, with an emphasis on region’s emerging markets.  As a core member of IEEFA’s debt markets team, he provides insights to project finance, multilateral development institutions, and financing the energy transition. In the area of LNG, Grant supports IEEFA’s global fossils team to track market trends and impacts. 

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