Offshore gas production in Southeast Asia is poised to unlock a US$100 billion (RM467.48 billion) potential, driven by a flurry of planned final investment decisions (FIDs) expected to materialise by 2028, according to RystadEnergy.
In a statement on July 10, the Oslo-based firm said this represents a more than twofold increase over the US$45 billion worth of developments that reached FIDs from 2014 to 2023, and signals a surge for the region’s offshore gas industry.
It said the upcoming period of rapid growth is bolstered by deepwater projects, recent successful discoveries in Indonesia and Malaysia, and positive carbon capture and storage (CCS) advancements, which will be crucial in meeting the region’s sanctioning agenda in the years ahead.
Rystad Energy said oil and gas majors are expected to drive 25% of these planned investments through 2028, while national oil companies (NOCs) will account for a 31% share.
Notably, it said East Asia’s upstream companies are emerging with a 15% share, and show potential for growth through their focus on merger and acquisition opportunities and upcoming exploration ventures.
The firm said that the role of majors could further expand to 27%, following TotalEnergies’ substantial acquisition efforts in Malaysia.
Rystad Energy said discussions among Southeast Asian countries have focused on the future of domestic developments and limiting their dependence on gas imports.
It said energy security and the transition to gas as a fuel have become growing concerns for governments in the region.
To address the energy trilemma — balancing energy security, energy equity and environmental sustainability — countries can prioritise utilising domestic resources for gas development, while crafting policies and incentives that promote sustainable practices and enhance regional energy security.
Rystad Energy said despite the region’s promising future for offshore gas development, persistent project delays remain a concern.
It said deepwater and sour gas economics, infrastructure readiness and regional politics have caused widespread delays, some of which have been ongoing for over two decades.
