ASEAN's Energy Situation

ASEAN is one of the fastest growing economic regions in the world and has a fast growing energy demand driven by economic and demographic growth. In 2010, its combined nominal GDP had grown to US$1.8 trillion. If ASEAN were a single entity, it would rank as the ninth largest economy in the world. The region's population of approximately 600 million people is 8.8 per cent of the world's population.

The region's economic and population growth had a consequential increase in primary energy consumption, which was registered at an average 3.6 per cent per annum from 1995 to 2007. Total primary energy consumption increased from 339 MTOE (million tonnes of oil equivalent) in 1995 to 511 MTOE in 2007. Among the energy sources consumed in the region, coal had the fastest growth rate increasing at an annual rate of 13.0 per cent mostly due to the installation of coalfired power plants in the region. This is followed by natural gas which grew by 6.5 per cent per annum, increasing its share from 16.4 per cent in 1995 to 21.4 per cent in 2007. Oil remains as the major energy source in ASEAN but its growth was relatively slower than other sources of energy at 2.2 per cent per annum.

Electricity production increased from 157 TWh (Terawatt-hour) in 1990 to 504 TWh in 2005 and 571 TWh in 2007. This is equivalent to an average annual growth rate of 7.9 per cent over the 1990 to 2007 period.

The region as a whole is a net energy exporter while five of the member states are large energy importers. Although from 1990 to 2007 the region still has substantial net exports on coal and natural gas, in terms of oil, however, it has become a net importer since 1995 as the rapid increase in oil demand was not matched by oil production.