Southeast Asia’s growing reliance on fuel imports and rising electricity demand are leaving the region increasingly exposed to price volatility and supply disruptions. According to the International Energy Agency (IEA), per capita energy consumption in Southeast Asia has increased by around 30% over the past decade, driven by economic growth, industrial development, urbanization and rising living standards. At the same time, crude oil production in the region has fallen by 40% from its peak in the 1990s, while crude oil imports have continued to rise.
Growing liquefied natural gas (LNG) imports are also making several Southeast Asian countries more vulnerable to price and supply shifts in global gas markets. Major disruptions to energy supplies through the Strait of Hormuz this year have once again highlighted the risks posed by potential supply crises in international fuel markets and strategic shipping routes. Pressure on the region’s power systems is also expected to increase.
The IEA forecasts that electricity demand in Southeast Asia will grow by an average of 5.4% annually between 2026 and 2030. Rising demand will be driven by greater use of cooling systems, industrial expansion and the rapid growth of data centers. Meeting this demand reliably will require greater investment in power grids, generation capacity and the flexibility of energy systems.
The IEA also stressed the need for planning that takes into account fuel supply risks and extreme weather events. The IEA recommends that ASEAN countries diversify their sources and routes of energy supplies, make greater use of domestic energy resources where economically viable, and expand energy efficiency and electrification. The report also calls for clearer emergency response procedures, stronger market monitoring and regular exercises to test how countries would respond to large-scale supply disruptions.
The IEA stressed that energy security measures should take into account the different national circumstances of ASEAN members. Coal, for example, still plays an important role in power generation and industrial activity in several countries, making reliable coal supplies and realistic pathways toward diversification particularly important. Here we are to serve you with news right now.
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