Natural gas is fast becoming the fuel of choice for power generation in Southeast Asia, where ample reserves offer a clean and indigenous energy alternative to oil and coal.
While some regions of the world are re-examining nuclear power for clean and efficient electricity, Southeast Asia is increasingly turning to gas, led by Malaysia and Thailand.
"Natural gas is certainly the fuel of choice in Southeast Asia, but in northern Asia, Japan, South Korea and Taiwan, where they import their energy, there's more of a division in fuels used," says Jenny Cosgrove, utilities analyst at Credit Suisse First Boston (CSFB) in Hong Kong.
Seventy-two percent of Thailand's power generation capacity is fuelled by natural gas, while in Malaysia it accounts for 67 percent of capacity, according to a CSFB research report.
Malaysia and Thailand are planning new coal-fired generation plants, but that's largely to diversify fuel sources.
"Natural gas will still be the main fuel for power in the future," says an official with the Electricity Generating Authority of Thailand.
Reserves of natural gas, the environmentally friendly option among major fuels in the region, are one factor.
Southeast Asia, unlike Japan and South Korea -- which are resource deficient and import almost all their energy needs -- sits on abundant reserves of gas.
Asia-Pacific had 10.3 trillion cubic meters of proven gas reserves at the end of 2000, or about 7 percent of the world total, according to BP's latest annual statistical review.
Indonesia and Malaysia lead the region with more than two trillion cubic metres each, according to BP estimates.
China follows with 1.37 trillion cubic meters but has done little to tap resources because of a lack of infrastructure, government controls on pricing and a preference for cheaper coal-based power.
Australia sits on about 1.26 trillion cubic meters of gas and has a well-developed domestic market and exports large amounts of gas to Japan and South Korea as liquefied natural gas (LNG).
Fuel oil makes up 87 percent of Singapore's generation capacity, with gas accounting for only 13 percent, according to the CSFB report.
Analysts expect the island state to rely more heavily on natural gas in future as new gas plants are built and old generators are converted from oil to gas.
Philippine power generators are also eyeing a switch to gas from fuel oil and most new plants are expected to burn gas. About 38 percent of power capacity in the Philippines uses fuel oil as feedstock at the moment.
Driving the conversion is the Philippines' first gas project, the Shell Philippines Exploration Camago-Malampaya project off Palawan island. Three power plants that will take gas from Camago-Malampaya are in planning or under construction.
Countries in northern Asia still relies heavily on coal, seeking a cheap answer to a lack of indigenous resources. Japan, South Korea, Hong Kong and Taiwan use a wide range of fuels for power generation from nuclear to fuel oil to coal due to their reliance on energy imports and the need to secure supplies.
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