Oil and gas projects in Southeast Asia to reach a decade-high in 2025 for decision

In a new report by Global Energy Monitor (GEM), it has been revealed that oil and gas investors in Southeast Asia could approve the highest annual number of oil and gas fields since 2016. If all these projects reach Final Investment Decision (FID), the region would tap more than 20 billion cubic metres of gas production annually, an 18% increase over current output.

However, the report also warns that these planned oil and gas projects are incompatible with plans to limit global warming to 1.5°C. Many of these projects are located in ecologically-sensitive areas such as the Coral Triangle and Mekong Delta, and if all current proposals go into production, more than 1.6 million square kilometres of the Coral Triangle would be directly impacted by fossil fuel development.

The Coral Triangle, encompassing parts of Indonesia, Malaysia, the Philippines, and considered one of the most biodiverse marine sites globally, has been a point of concern for environmental groups. Protests have been raised against oil and gas exploration plans in protected areas such as the Tun Mustapha Marine Park in Sabah.

One of the projects already approved this year is the Hidayah field offshore East Java, Indonesia, by national oil firm Petronas. Jadestone Energy, on the other hand, has spent years trying to secure approval to develop the Nam Du and U Minh gas fields in Vietnam, but has yet to achieve it. Vietnam's Ca Voi Xanh (Blue Whale) gas field, discovered in 2011 by ExxonMobil, has also yet to reach a final investment decision due to the company's restructuring and focus on new energy streams.

The ongoing dispute over gas distribution between Petronas and Sarawak state-backed oil firm Petros in Malaysia has spooked foreign firms. United States oil giant ConocoPhillips withdrew from a US$3.1 billion project in Sarawak, Malaysia, amid company-wide layoff plans. Thai national oil company PTTEP also withdrew from the planned Lang Lebah gas field in Malaysia, one of its largest discoveries ever.

Energy experts are tracking the impact of US tariffs on Asian economies and have warned that relying on liquified natural gas (LNG) will not ease the region's energy security concerns. GEM suggests that Southeast Asian governments should redirect investment towards clean, scalable energy systems to support economic resilience and align with global climate commitments.

The ongoing debate over oil and gas developments in the Coral Triangle raises questions about the region's commitment to climate change mitigation and biodiversity conservation. With the potential for significant lifespan and locking in gas as a substantial component of the region's energy mix, it is crucial for governments and investors to carefully consider the long-term impacts of these projects.