Asia’s push to build more than US$350bil (RM1.47 trillion) in new gas infrastructure represents, according to specialist analysis, a strategic effort to displace coal while raising questions about long-term fossil fuel dependency. The region’s investment, which triples the estimated outlay for Europe, is concentrated on expanding liquefied natural gas (LNG) terminals, gas-burning power plants, and pipelines, according to data from Global Energy Monitor.
Expert Framing: Gas as a Transitional Fuel
Mark Carney, the former Canadian and UK central bank governor who now serves as a special envoy on climate action for the United Nations (UN), addressed the role of natural gas at the Asia Sustainable Finance Forum in Seoul last month. “There definitely is a role for gas,” Carney said, particularly in displacing coal. “But we always need to keep in mind the ultimate horizon for any source of energy given its carbon footprint.” This analytical perspective underscores the technical reading of gas as a fuel that produces half the carbon emissions of coal, yet still contributes to atmospheric carbon dioxide levels.
The boom targets economies including China, the Philippines, and Vietnam, aiming to allow these nations to avoid burning more coal. Asian governments seek the same benefits the United States and Europe have enjoyed from gas for decades: the ability to heat homes, cook food, and power factories around the clock, while also cleaning up urban smog. However, analysts note that the expansion risks locking in the use of fossil fuels for decades and could slow some deployments of renewable energy.
Regional Scale and Infrastructure Commitments
Asia, as the largest energy-consuming region and home to most of the world’s population, already accounts for about the same amount of gas consumption as the United States, according to BP Plc data. The potential for massive further growth is why the expansion is concerning, said Robert Rozansky, a researcher cited in the source material. BloombergNEF data shows 30 import projects currently under construction, with tentative plans for another three dozen.
South Korean companies including Posco Energy Co, SK E&S Co, and state-run Korea National Oil Corp are adding LNG facilities. These installations could later be re-purposed for the transportation and storage of hydrogen, a developing source of low or zero-emissions energy. This dual-use design represents a technical hedge by planners who acknowledge the debate over gas’s long-term viability.
The Causation Debate Remains Open
While the UN has warned that the world may be on track to warm by more than three degrees Celsius—twice the Paris Agreement target—the causation debate remains open. Some scientists argue that gas use must shrink for the world to stave off the worst effects of climate change, a position that informs the growing consensus cited in the source material. The UN’s added measure of urgency to phase out fossil fuels reflects this perspective, though it does not settle the underlying scientific questions about the relative contributions of natural versus anthropogenic factors.
The analytical reading of the facts suggests that Asia’s gas infrastructure buildout is a calculated bet: it provides immediate gains in air quality and coal displacement, but carries the risk of stranded assets if regulatory or market forces shift decisively against fossil fuels. The region’s planners appear to be watching how the hydrogen economy develops, with South Korea’s repurposing strategy offering a potential template for managing that risk.
What to watch next: The pace of hydrogen infrastructure development in South Korea and other Asian economies, and whether the 30 LNG projects currently under construction proceed on schedule or face delays as the debate over gas’s role intensifies. Also, how China, the Philippines, and Vietnam balance their coal displacement goals with the long-term implications of gas infrastructure that may need to be adapted or retired earlier than initially planned.
