The United States is pitching billions of dollars in investment to become Southeast Asia’s energy partner of choice, offering gas, grid technology and nuclear expertise as ongoing turmoil from the Iran war sharpens fears of future supply shocks.
Analysts say the push serves American strategic and commercial interests – from opening markets for US liquefied natural gas to countering China’s dominance in big-ticket infrastructure – but also offers the region opportunity.
Washington announced US$1.5 billion in financing through its International Development Finance Corporation (DFC) on July 22, calling the push to build energy infrastructure across the Indo-Pacific the “single largest project investment” in the agency’s history.
The deal was unveiled during US Secretary of State Marco Rubio’s visit to Manila for the Asean foreign ministers’ meeting, alongside a commitment to invest US$2.5 billion across other areas including energy security and future technologies.
“We want to work with Asean as it develops its digital economy and continues to bolster its energy security, and to address other regional challenges, including ensuring that stability and security are preserved,” said Kevin Kim, US ambassador to the Association of Southeast Asian Nations, at a virtual briefing on Friday.