Key facts
- Cambodia is constructing a 900-MW LNG-fueled power station.
- The U.S., Australia, and Canada are among nations interested in supplying LNG to Cambodia.
- Cambodia currently sources over 50% of its energy from hydrocarbons, with hydropower and biofuels forming the majority of its domestic generation.
- High LNG prices in Asia, recently exceeding $21 per million British thermal units, pose an affordability challenge.
- Disruptions in LNG flows from the Middle East and upcoming capacity increases are intensifying competition among exporters.
Global liquefied natural gas (LNG) giants are targeting Cambodia as a potential new market, driven by the nation's construction of its first LNG-fueled power station. Energy Minister Keo Rottanak indicated that countries including the United States, Australia, and Canada are interested in supplying fuel for the new 900-MW plant.
While Cambodia generates a significant portion of its electricity from renewable sources like hydropower and biofuels, it also relies on hydrocarbons. The government views LNG as a tool for energy diversification. However, current high LNG prices in Asia, with the Japan-Korea Marker recently surging above $21 per million British thermal units, present an affordability challenge for some nations.
Recent disruptions in LNG flows from the Middle East, coupled with Qatar Energy's extension of force majeure on Ras Laffan, have created opportunities for other exporters. With substantial new LNG export capacity expected to come online in the coming years, particularly in the United States, securing new clients like Cambodia is a strategic move to intensify competition.