South-east Asia may become net fossil fuel importer in coming years: IEA

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South-east Asia may become net fossil fuel importer in coming years: IEA
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Southeast Asia could become a net importer of fossil fuels in the next few years...

SINGAPORE - Southeast Asia could become a net importer of fossil fuels in the next few years, raising the financial burden on governments and increasing carbon emissions in the region, the International Energy Agency warned in a report.

Southeast Asia was already a net oil importer at 4 million barrels per day in 2018, while strong growth in demand for natural gas has reduced the surplus of gas for export, the world’s energy watchdog said. The region’s overall surplus of supply over demand at 120 million tonnes of oil equivalent in 2011 had been eroded to just above 30 mtoe in 2018, it said.

Oil demand in Southeast Asia, home to nearly 10% of the world’s population, would surpass 9 million barrels per day by 2040, up from just above 6.5 million bpd now, the IEA said. Demand for coal is also projected to rise steadily over the coming decades, largely fueled by new coal-fired power plants, despite headwinds facing such projects that include increasing difficulty to secure competitive financing for new facilities.

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