South-east Asia faces sweltering heat as war limits energy supply
A prolonged disruption will threaten the fossil-fuel-reliant region’s power generation into April and May
Add BT as a preferred source
[HONG KONG] South-east Asia is set to experience a warmer-than-usual early summer, potentially raising the power demand for fuel and straining the grids.
This comes at a time when the Middle East conflict has tightened energy supplies in the region.
Across most of maritime and mainland South-east Asia, home to more than half a billion people, temperatures will be above average for the March-to-May period, based on the latest seasonal outlook published by the Asean Specialised Meteorological Centre (ASMC) on Mar 6.
The forecast comes as the US-Israeli war against Iran upended transport and output across the Middle East, sending energy prices soaring.
A prolonged disruption would threaten fossil-fuel-reliant South-east Asia’s power generation into April and May, when the mercury can climb to sweltering levels.
There is an 80 to 100 per cent chance of above-normal temperatures across Indonesia and Malaysia, based on ASMC’s projection for the three-month period.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The unseasonal heat is likely to first set in over those two countries, and then is expected to expand to much of mainland South-east Asia in the following two months. Swathes of Thailand and northern Vietnam are also set to bake in the heat, the centre said.
Only small pockets of the region, including south-eastern Vietnam, Cambodia and parts of the Philippines, are forecast to have near-normal temperatures.
Gas importers in some parts of the bloc are already dipping into the spot market for liquefied natural gas (LNG) cargoes, after major supplier Qatar halted its largest export facility on Mar 2 due to the war.
Vietnam and Thailand are seeking March and April shipments, while Thailand has tweaked its LNG procurement plan to add three spot cargoes in those months.
Singapore, which obtained more than 40 per cent of its LNG from Qatar in 2025, may face a spike in its power prices in the second quarter, said the country’s Energy Market Authority.
Asian spot prices doubled on Mar 4 and remain elevated; buyers in South-east Asia will be competing with others in Asia and Europe for a limited amount of gas. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
