Southeast Asia Oil And Gas Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Southeast Asia Oil And Gas Market Trends and Insights

Post-pandemic investment rebound accelerates upstream recovery

Capital spending on Southeast Asian upstream projects increased by 34% in 2024 to USD 28.5 billion, as operators reinstated delayed exploration and development programs. PETRONAS dedicated USD 8.2 billion to Malaysian offshore work, and PT Pertamina allocated USD 4.7 billion for Indonesian expansions, signaling restored confidence in demand growth. Approximately 40% of that is spent on targeted LNG supply chains, with Malaysia’s floating LNG and Indonesia’s onshore liquefaction benefiting most. The rapid outlays clear a project backlog dating from 2020-2022 deferrals and position the region as a swing LNG supplier for wider Asia. Real-time reservoir analytics and subsea tie-backs are compressing payback periods, further stimulating upstream commitments.

Energy-security imperatives drive domestic resource development

Governments are intensifying efforts to cut import dependence. The Philippines initiated a strategic petroleum reserve program in 2024, which provides 30 days of coverage, while Vietnam increased its gas storage capacity by 25%. Thailand’s PTT boosted exploration spending 45% in the Gulf of Thailand to offset mature-field decline, and Myanmar awarded 12 new blocks despite political risks. Revised fiscal terms—higher cost-recovery ceilings and accelerated depreciation—have improved project economics, drawing both local and foreign capital. These actions align with broader ASEAN goals of supply resiliency amid volatile global markets.

LNG-terminal construction transforms regional gas infrastructure

Regasification capacity expanded 18 MTPA in 2024, led by the Philippines’ Bataan facility and Thailand’s Map Ta Phut expansion. Singapore’s Jurong Island processed 14.2 MTPA, cementing its role as Southeast Asia’s trading hub. New import capacity is 85% contracted under long-term deals with QatarEnergy and U.S. suppliers, de-risking utilization. FSRUs supply 60% of new capacity, offering rapid deployment and lower costs compared to onshore terminals. Enhanced gas access facilitates coal-to-gas switching, enabling the meeting of emissions targets without compromising grid reliability.

Biofuel integration pilots transform gas-network utilization

Singapore has approved hydrogen blends of up to 20% in existing gas grids, targeting a commercial rollout in 2026.^{(1)Malaysia Energy Market Authority, “Hydrogen Blending Pilot Approval 2024,” ema.gov.sg}Petronas Gas is running biogas injection trials on Peninsular Malaysia lines, proving compatibility without major infrastructure modification. Blending leverages sunk pipeline costs while creating demand for renewable molecules, turning networks into low-carbon enablers. Operators earn premium tariffs for low-carbon content and defer large-scale pipeline retirement, aligning shareholder returns with transition goals.

Legacy field decline outpaces reserve-replacement efforts

Indonesian basins recorded 8-12% annual depletion in 2024, exceeding the global 5-7% norm.^{(2)Indonesian Ministry of Energy and Mineral Resources, “Field Decline Statistics 2024,” esdm.go.id}Malaysia’s aging offshore assets need USD 2.3 billion of maintenance by 2026 to sustain plateau output, straining operator cash flow. The regional reserve-replacement ratio fell to 0.7 times, underscoring the insufficient number of discoveries. Infill drilling and enhanced recovery provide only tactical relief. Operators face steeper lift costs and heightened abandonment liabilities, which intensify capital discipline and can delay frontier exploration.

Regulatory fragmentation creates investment uncertainty

Frequent fiscal-term revisions and tightening local-content rules complicate economic modeling. Indonesia’s 2024 cost-recovery overhaul reduced contractor margins by 8-12%, while Malaysia increased mandated local content to 70% for certain offshore scopes, thereby raising procurement costs. Approval cycles in Thailand lengthened by up to two years. These variances oblige investors to demand higher returns, which can shelve marginal projects. ASEAN harmonization remains aspirational because member states are reluctant to cede resource sovereignty.

Segment Analysis

By Sector: Upstream dominance reflects resource endowment

Upstream activities generated 72.8% of 2024 revenue, and the segment is projected to grow at a rate of 5.8% through 2030, maintaining its largest share of the Southeast Asia oil and gas market. Massive projects such as Indonesia’s Abadi LNG and Malaysia’s Kasawari gas development underpin spending, while midstream networks expand in tandem to evacuate new volumes. Downstream capacity growth lags because stricter emission standards curb new refinery builds.

Digital reservoir models and advanced subsea processing are elevating recovery factors, reinforcing upstream leadership. Governments favor domestic production to enhance energy security, and new fiscal incentives tend to direct capital toward exploration rather than refining upgrades. Enhanced oil recovery and unconventional resource pilots will keep the upstream segment at the forefront of the Southeast Asia oil and gas industry.

Note: Segment shares of all individual segments available upon report purchase

By Location: Offshore operations drive technical innovation

Offshore projects accounted for 60.9% of total 2024 expenditure and are expected to grow at a 6.3% CAGR through 2030 as operators expand their operations into regional basins. Water-depth records are continually broken in Malaysia’s Sabah and Sarawak plays, validating commercial viability beyond 1,000 meters. Onshore assets remain important for gas processing and storage, yet lack comparable growth momentum.

Floating production systems account for 45% of new capacity, offering cost flexibility and a reduced environmental footprint. ASEAN regulators are gradually aligning offshore safety and environmental codes, easing cross-border collaboration. The maturity of shallow-water supply chains shortens learning curves for deepwater development, sustaining offshore dominance in the Southeast Asia oil and gas market.

By Service: Construction leads while decommissioning accelerates

Construction services accounted for 56.4% of revenue in 2024, as LNG terminals and offshore platforms proliferated. Decommissioning, although smaller, is projected to advance at a rate of 7.9% annually to 2030, reflecting the strict removal deadlines for end-of-life installations in Malaysia and Indonesia.^{(3)TechnipFMC, “Annual Report 2024,” technipfmc.com} Maintenance and turnaround retain steady demand by preserving uptime at aging fields.

TechnipFMC secured USD 1.2 billion in Southeast Asian awards in 2024, encompassing subsea umbilicals and LNG modules. Local-content mandates foster consortia pairing global service majors with domestic fabricators, enabling capability transfer. As decommissioning volumes rise, specialized heavy-lift and well-plugging services are expected to flourish, diversifying revenue beyond greenfield build-out in the Southeast Asian oil and gas industry.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Indonesia retains market leadership with a 35.6% share in 2024, thanks to extensive offshore reserves, mature onshore facilities, and PT Pertamina’s USD 4.7 billion upstream program, which targets an incremental 180,000 BOPD by 2026. The Abadi LNG project, seeking a final investment decision, will add strategic export capacity upon sanction. Malaysia remains a strong second through PETRONAS’s integrated value chain; the Kasawari field delivered its first gas in 2024 at 1.2 BCFD, reinforcing domestic supply security.^{(4)PETRONAS, “Kasawari First-Gas Announcement,” petronas.com} Thailand balances declining legacy output with unconventional exploration and an 11 MTPA Map Ta Phut regas expansion that anchors import flexibility.

The Philippines is expected to achieve the highest growth rate of 6.2% through 2030, as Malampaya Phase 2 ramps up and multiple LNG terminals come online to displace coal in power generation. Vietnam’s Nam Con Son developments and industrial demand boost its trajectory, supported by PetroVietnam’s 15% production growth plan. Singapore’s Jurong hub maintains regional supply liquidity by providing storage, blending, and facilitating price discovery. Myanmar’s output remains modest due to political uncertainty; however, the success of the Shwe field drilling demonstrates ongoing international engagement.

Cross-border projects knit markets closer. The Trans-ASEAN Gas Pipeline facilitates volumetric swaps, allowing countries with seasonal surpluses to support their neighbors. Regulators are drafting unified HSE and metering standards to lower transaction friction. Geography thus exerts a dual influence, granting incumbent producers scale benefits while opening up niche growth opportunities for import-reliant economies within the Southeast Asia oil and gas market size calculus.

Note: Segment shares of all individual segments available upon report purchase