Strong growth in natural gas is expected in Asia as Fitch Solutions projected gas generation to increase by over 51% to 774 terawatt-hours between 2022 and 2031.
This is higher than the growth rates forecast in the Middle East and North Africa (31%), Latin America (26.7%), and Sub-Saharan Africa (25%).
“The drivers vary by region and market, but common threads include the improving efficiency of gas-fired power plants, ongoing decarbonisation efforts, and attempts to diversify the power supply away from alternatives such as hydropower, coal, and oil,” the report read in part.
“Although the LNG-to-power markets remain nascent, it shows a lot of potential worldwide, in particular in markets lacking adequate domestic gas supplies and where the options for pipeline gas are limited.”
In the Asia-Pacific region, the key drivers will be Southeast Asian markets, such as Vietnam, the Philippines, Indonesia, and Myanmar.
LNG-to-power projects are also gaining ground as it addresses increasing energy demand whilst still curbing emissions growth.
