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Coal, oil to lead energy demand-growth in Southeast Asia to 2040 -IEA
October 24, 2017 / 1:09 AM / a month ago

Coal, oil to lead energy demand-growth in Southeast Asia to 2040 -IEA

* Region to be key driver for global energy demand growth -IEA

* Coal to dominate SE Asia electricity mix -IEA

* Transport to drive oil demand up 40 pct to 6.6 mln bpd in 2040

* Net energy import bill to rise to over $300 bln in 2040

By Florence Tan

SINGAPORE, Oct 24 (Reuters) - Energy demand in Southeast Asia is expected to climb nearly 60 percent by 2040 from now, with coal and oil leading growth in the region’s power and transport sectors, the International Energy Agency said on Tuesday.

Southeast Asia will become a key driver for energy demand globally as its economy triples in size and its total population grows by a fifth, the IEA said in a report. But the region’s net energy import bill is also rising as oil production declines, raising concerns over energy security.

Southeast Asia will have to fork out more than $300 billion in 2040 for net energy imports, equivalent to about 4 percent of the region’s total gross domestic product, according to the IEA.

Its net oil imports of 6.9 million barrels per day in 2040 will require $280 billion in annual outlay by 2040, making oil the largest chunk of projected imports, the agency said.

“Apart from the mounting import bill, the region’s increasing dependence on imported energy raises significant energy security concerns,” the IEA said.

The largest share of the increase in final energy consumption will be from power generation, with rising incomes in the region sparking more people to buy electric appliances including air conditioners, the IEA said.

Installed power generation capacity in southeast Asia will rise to more than 565 gigawatts (GW) in 2040, from 240 GW today, it said, with coal and renewables accounting for almost 70 percent of new capacity.

Coal alone will account for almost 40 percent of the growth, overtaking gas in the electricity mix, the IEA said.

Oil demand will expand to around 6.6 million bpd by 2040 from 4.7 million bpd now, with the number of road vehicles increasing by two-thirds to around 62 million, the agency said.

Reporting by Florence Tan; Editing by Joseph Radford

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