Stabilising LNG Markets in ASEAN: Implications for Energy Security and the Energy Transition

Liquefied natural gas (LNG) plays a pivotal role in ASEAN’s energy security and its transition towards lower-carbon energy systems. As electricity demand continues to rise alongside economic growth and urbanisation, LNG offers a flexible and relatively lower-emissions alternative to coal, while providing the firm capacity required to support the integration of renewable energy. However, global LNG markets have entered a period of heightened volatility, characterised by rapid and wide-ranging price fluctuations driven by shifting supply–demand balances, geopolitical developments, and evolving energy policies in major consuming regions.

This Policy Brief examines recent developments in global and regional LNG markets, with particular attention to Southeast Asia. It analyses the structural drivers of price volatility, including Europe’s increased reliance on LNG, China’s expanding and fluctuating gas demand, and the growing role of the United States as a major LNG supplier. The brief also highlights the emergence of new LNG-importing countries in ASEAN and the implications of market uncertainty for their energy security and investment planning. In addition, it addresses the increasing importance of methane emissions management and greenhouse gas mitigation in shaping the long-term role of LNG. Drawing on expert discussions held between 2024 and 2025, the brief proposes policy directions to stabilise LNG markets in ASEAN while aligning energy security objectives with climate commitments.