Japan’s Top LNG Buyer Eyes Southeast Asia Amid Regional Energy Transition
GerikSummary:
Jera Co., Japan’s largest LNG buyer and power utility, is expanding its footprint in Southeast Asia to meet growing regional electricity demand...
Jera Targets Southeast Asia’s Growing Power Needs
Jera Co., Japan’s biggest power generation company and liquefied natural gas (LNG) importer, is sharpening its focus on Southeast Asia, a region witnessing surging energy demand amid insufficient domestic gas output and limited renewable energy capacity. According to Izumi Kai, CEO of Jera Asia Pte. in Singapore, renewables and battery storage alone are not yet capable of bridging the widening energy gap in countries like Indonesia and Malaysia.
As a result, LNG is positioned as a transitional fuel in these economies. Kai emphasized the urgency and complexity of matching energy demand with sustainable and reliable sources, highlighting that Jera remains "always looking for new opportunities" and is open to divesting existing assets to finance future projects.
Southeast Asia Emerges as LNG Growth Hotspot
Southeast Asia is expected to double its LNG demand by 2030 compared to 2024, according to BloombergNEF. This rising demand is transforming the region into a strategic battleground for global LNG suppliers, with Jera already operating in the Philippines, Thailand, and Indonesia. These countries, once LNG exporters or self-sufficient, are now increasingly reliant on imports.
Malaysia, historically a net LNG exporter, is preparing for future shortfalls by constructing a third regasification terminal. Similarly, Indonesia recently requested that international buyers delay shipments due to rising domestic consumption, an indicator of shifting supply priorities in formerly export-driven economies.
Beyond ASEAN: Jera’s Interest in Bangladesh
Looking outside ASEAN, Jera is also eyeing opportunities in Bangladesh, where it recently opened a new office. With Bangladesh’s power infrastructure expanding rapidly to support economic growth, Jera sees potential for investing in LNG infrastructure and power generation projects.
This expansion into South Asia underscores the company's broader regional strategy of positioning LNG as a transitional yet critical energy source where renewable adoption remains constrained by cost, land use, and grid stability issues.
Jera’s moves reflect a pragmatic response to the regional energy mix in Southeast Asia and beyond. While long-term decarbonization remains a global goal, LNG continues to play a central role in energy security and economic development for emerging markets. With its willingness to recycle capital and shift focus across geographies, Jera is strategically aligning itself with the evolving needs of Asia’s energy-hungry economies.
Source: Bloomberg
To stay updated on all economic events of today, please check out our Economic calendar
Copyright © 2025 FastBull Ltd
News, historical chart data, and fundamental company data are provided by FastBull Ltd.
Risk Warnings and Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
