Asia is driving two-thirds of new oil and gas development
Source: Asia Insurance Review | Nov 2023
International new oil and gas capacity grew by 13% in 2022 and this capacity growth has mainly happened in China and Southeast Asia according to a new study.
The 23-page Global Oil and Gas Plant Tracker study Gas Glut 2023 – Global Gas Power Expansion Continues to Thwart Energy Transition was conducted by Global Energy Monitor (GEM). The report says this growth casts a cloud over the likelihood of meeting climate targets and avoiding the worst consequences of climate change. It said the capacity growth will make decarbonisation harder to achieve.
The GEM report revealed that 783 gigawatts (GW) of oil and gas projects were announced or are in the pre-construction and construction phases in 2022. It said, “If this capacity is built, the global oil and gas fleet will grow by a third at an estimated cost of $611bn and create emissions equivalent to six and half years of the US domestic carbon footprint over their lifetime.”
Almost three-quarters of this new capacity – 514GW, at an estimated cost of $385bn – is being built in Asia, with one-fifth (21%) of global supply under development in China and a sizeable chunk of new projects in Vietnam, Bangladesh and the Philippines.
It is also the result of countries switching from coal to a less carbon-intensive fuel source as they work towards climate targets, with natural gas being aggressively marketed in Asia as a greener power source. A