Region to become net importer of significant volumes of oil and gas. Decreasing indigenous production coupled with rising demand will push Southeast Asia’s hydrocarbon import bill to more than US$300 billion in 2040 - equivalent to 4% of the region’s total gross domestic product, according to the International Energy Agency.

Oil will account for the lion’s share of this bill, with the IEA projecting net crude imports of 6.9 million barrels per day costing $280 million annually by 2040.

Meanwhile, Southeast Asia will become a net importer of gas “shortly after 2025”, according to the IEA’s director energy markets & security, Keisuke Sadamori.

Regional gas production is expected to remain around constant at some 220 billion cubic metres per annum through to 2040. However, the growth in demand will leave Southeast requiring more liquefied natural gas and pipeline gas imports.

Addressing delegates at Singapore International Energy Week, Sadamori said that the region could stave off becoming a net importer within the decade if the high carbon dioxide multi-trillion cubic feet East Natuna gas field offshore Indonesia were to be exploited.

“Southeast Asia remains an important producer of oil, gas and coal but faces many challenges, especially in the near term,” said the Paris-based IEA in its Southeast Asia Energy Outlook 2017, which was launched today.

The IEA reckons that regional oil production will continue its current downward trend, falling from 2.5 million bpd today to 1.7 million bpd in 2040.

“A slight rise in production in Brunei Darussalam and the Philippines is not enough to offset declines in Indonesia, Malaysia and Vietnam,” said the IEA report.

Source: http://www.upstreamonline.com