Southeast Asia’s new wave of deepwater gas projects

AI Summary

Southeast Asia is embarking on a second wave of deepwater gas projects that aim to tap into vast gas resources in the region. However, many operators face economic challenges due to fragile project economics and high costs.

Southeast Asia is entering a critical second wave of deepwater gas development targeting 28 trillion cubic feet of resources across Indonesia, Malaysia and Brunei. However, delivering these projects won’t be easy. Our models suggest these projects have fragile economics, with many delivering less than 15% internal rates of return (IRR). As a result, operators face ...