Mixed for IndiaAI assessmentReported
Asian LNG power projects worth $67.8 billion are scrapped or stalled
- Likely effect
- Mixed effects for India
- When
- Medium-term
- Confidence
- Medium
- Reported by
- 1 publisher
In simple words
What happened?
Many LNG-to-power projects in Asia have been scrapped or stalled since 2021. The issue is tied to rising costs.
Why does it matter to India?
Higher LNG costs can keep imported fuel prices firm, which may lift global energy costs and raise pressure on India's import bill.
Mixed effects for India. Small impact.
What could it affect?
- LNG
- Gas prices
- Power projects
- Energy costs
Worldwide
How it could reach India
- Step 1LNG project delays
- Step 2Asia gas demand
- Step 3LNG pricing
- Step 4Energy costs
- Step 5Indian equities
Sectors that may feel it
Mixed
Oil & gas
Indian gas and energy companies can be affected if regional LNG demand shifts or if imported fuel costs stay firm.
Mixed
Energy and renewables
Power developers using gas may face cost pressure, while delayed LNG projects can alter the outlook for alternative energy investment.
Potentially negative
Aviation
Higher fuel costs can add pressure to airline operating expenses if energy prices stay elevated.
Mixed
Infrastructure
Delayed or stalled power projects can affect sentiment around power and energy infrastructure financing.
What happened
IEEFA says more than half of proposed LNG-to-power projects worth $67.8 billion in four Southeast Asian markets have been scrapped or stalled since 2021. The analysis covers proposed LNG-fired power projects and planned LNG import terminals in the Philippines, Vietnam, Thailand and Bangladesh.
Why it matters
Slower LNG project progress can signal weaker near-term demand growth for imported gas in Asia, but it can also keep the region reliant on existing fuel supplies. For India, any rise in gas and power fuel costs can feed into import bills, inflation pressure and energy sector sentiment.
Global impact
Global gas markets often react when large LNG projects are delayed or abandoned, because it can change expected future demand for cargoes and project finance sentiment. Energy-linked stocks and shipping-related names can also see knock-on moves if the market reads the news as a shift in regional demand plans.
How the story broke
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