# Asian energy infrastructure and investment trends

> Live situation record from CLSTR: https://clstr.news/situations/asian-energy-infrastructure-and-investment-trends
> Updated: 2026-10-25T23:31:15.000Z. Sources: 8. Developments: 3.

Asia is projected to lead global growth in liquids storage capacity through 2030, with China and India serving as central hubs for new-builds and expansions in refinery terminals, strategic petroleum reserves, and port terminals.

Looking toward 2040, regional energy investment may reach $1 trillion annually to meet rising demand, which is expected to account for approximately 70% of global net energy demand growth. This demand is driven by industrial expansion, data center construction, and increased cooling requirements. A McKinsey report suggests that total investment through 2040 could reach $15 trillion, with regional demand forecasted to hit 370 million terajoules—a 15% increase over previous estimates.

While renewable energy deployment is expected to accelerate, with annual solar and wind investment potentially reaching $300 billion through 2040, implementation faces hurdles. Between 2021 and 2025, between 50% and 60% of renewable projects in Vietnam, Thailand, and Indonesia were reportedly canceled or stalled due to policy and infrastructure issues.

Regarding fossil fuels, coal demand is projected to remain broadly flat over the next decade, as declining consumption in China is offset by growth in India and Southeast Asia. Coal currently represents approximately 47% of Asia’s total primary energy mix and supplies over 50% of its electricity, rising to 67% in South Asia. In the liquefied natural gas (LNG) sector, some nations are pivoting away from gas to reduce reliance on volatile imports. 

Additionally, International Energy Agency (IEA) head Fatih Birol has warned of a “dangerous concentration” in clean energy supply chains, noting China's dominance in wind, solar, battery, and electric vehicle manufacturing. This concentration poses risks to energy security, particularly in Southeast Asia, which has become a major destination for Chinese transition technology.

## Claims

- Asia may need up to $1 trillion in annual energy investment over the next 15 years. (corroborated by 4 sources)
- Annual solar and wind investment could reach approximately $300 billion through 2040. (corroborated by 3 sources)
- Coal demand in Asia is expected to remain broadly flat over the next decade. (corroborated by 3 sources)
- Growth in coal consumption in India and Southeast Asia is expected to offset falling demand in China. (corroborated by 3 sources)
- Natural gas demand growth is expected to slow over the next five to ten years. (corroborated by 3 sources)
- Asia is expected to generate about 70% of global net energy demand growth through 2040. (corroborated by 3 sources)
- Asia's energy demand is forecasted to reach 370 million terajoules by 2040. (corroborated by 2 sources)
- Biofuels could displace between $90 billion and $100 billion in fuel imports by 2040. (single source)
- Between 2021 and 2025, 50% to 60% of renewable projects in Vietnam, Thailand, and Indonesia were canceled or stalled. (single source)

## Timeline

### 2026-10-25: Asia's energy transition faces supply chain concentration and rising demand

Asia is set to drive 70% of global energy demand growth by 2040, facing challenges from coal dependency and highly concentrated clean energy supply chains dominated by China.

2 sources. https://clstr.news/cluster/asias-energy-transition-faces-supply-chain-concentration-and-rising-demand

### 2026-10-22: Asia energy investment needs reach $1 trillion annually

McKinsey forecasts that Asia needs up to $1 trillion in annual energy investment through 2040 to meet rising demand and secure supplies amid geopolitical vulnerabilities.

7 sources. https://clstr.news/cluster/asia-energy-investment-may-reach-1-trillion-annually-through-2040

### 2026-10-04: Asia leads projected global liquids storage growth through 2030

Asia is set to lead global liquids storage capacity growth through 2030, while some nations like Thailand pivot toward renewables to reduce reliance on volatile LNG imports.

2 sources. https://clstr.news/cluster/asia-leads-projected-global-liquids-storage-growth-through-2030

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Cite as: Asian energy infrastructure and investment trends. CLSTR, https://clstr.news/situations/asian-energy-infrastructure-and-investment-trends