Podcast: Global gas turbine shortages are disrupting Southeast Asia’s LNG buildout

Sam Reynolds, Research Lead, LNG/Gas, Asia at the Institute for Energy Economics and Financial Analysis (IEEFA), discussed how global turbine shortages are slowing Southeast Asia’s liquefied natural gas (LNG) expansion in an episode of Energy Tracker Asia’s podcast.

He explained how lengthy delivery backlogs, higher costs, and supply constraints are delaying major LNG projects in Southeast Asia, with the Philippines and Vietnam as case studies. 

Reynolds shared that the Philippines’ Department of Energy Secretary Sharon Garin cited global gas turbine shortages as a hindrance to the country's future LNG plans, adding that it is unlikely to build more LNG terminals in the near term. Recently, a large USD1.5 billion LNG-to-power complex in Batangas was cancelled.

In Vietnam, according to Reynolds, the gas turbine shortage is just one of several issues that have plagued the development of its gas-fired power plants. None of the new projects has secured the customer contracts necessary to obtain financing.

The discussion highlighted that the slowdown in LNG expansion is raising doubts about gas as a reliable bridge fuel, creating more opportunities for renewables to expand across the region. It also emphasized the implications for investors, energy security, and long-term planning, as well as why Southeast Asia’s power mix may shift more rapidly toward solar, wind, and storage. 

“The public narrative around gas is changing. Five years ago, LNG and gas were widely viewed as clean, sustainable, and affordable sources of energy for Southeast Asian countries. However, we're starting to see market disruptions erode pro-gas, pro-fossil fuel narratives, and the emphasis is now being shifted towards a more rapid deployment of low-cost renewables."

Read the related report: Global gas turbine shortages add to LNG challenges in Vietnam and the Philippines