Mytrag.com – Southeast Asia’s rising demand for oil and gas is set to be a key focus over the next decade, accounting for more than 25% of global energy demand growth, according to Fatih Birol, Executive Director of the International Energy Agency (IEA). Speaking at the Singapore International Energy Week on October 21, Birol emphasized the region’s growing importance in global energy markets, second only to India in terms of growth.
Energy security is a critical concern for Southeast Asia, as about two-thirds of its oil and gas flows through the narrow and strategically important Malacca Strait. Any disruption in these energy flows could have significant consequences for regional economies that heavily rely on imports to meet their energy needs, Birol said.
Beyond fossil fuels, the region is also pivotal in the clean energy transition. Countries like Vietnam, Malaysia, and Thailand play essential roles in manufacturing solar panels, while the Philippines and Indonesia possess critical minerals vital to electric vehicle production. Birol noted that Southeast Asia is one of the most dynamic regions in the world in terms of energy transition.
To strengthen ties with the region, the IEA opened its first-ever regional office in Singapore. This new IEA Regional Cooperation Centre, inaugurated on October 21, aims to deepen the agency’s collaboration with Southeast Asian countries, supporting them as they navigate energy challenges and opportunities.
The IEA has been engaged in various regional energy initiatives for years, including the Singapore-IEA Regional Training Hub and the IEA-Indonesia Energy Transition Alliance, which was launched to accelerate Indonesia’s energy transition. Birol highlighted the IEA’s ongoing efforts to develop multilateral electricity trade in Southeast Asia, including projects involving Thailand, Laos, Malaysia, and Singapore.
Southeast Asia, home to 685 million people, saw a 5% increase in energy demand in 2023, driven by growing needs in power, transport, and industry. According to the IEA’s 2024 World Energy Outlook, energy affordability and security will remain top priorities for the region as it balances economic growth with emissions reductions.