Global Turbine Shortage Threatens Gas Power Expansion in Vietnam, Philippines
MANILA/HANOI – Aspiring plans to expand gas-fired power capacity in Vietnam and the philippines are facing notable headwinds due to a global shortage of gas turbines, potentially delaying projects for years and jeopardizing energy development targets.
The three dominant gas turbine manufacturers - Siemens Energy, Mitsubishi Heavy Industries (MHI), and GE Vernova – collectively control approximately 90% of the global market. Despite recent announcements to increase production capacity1, all three companies currently report significant order backlogs and delivery lead times stretching up to eight years.
This supply crunch is especially concerning for the 35.9 gigawatts (GW) of gas projects currently in early development across Vietnam and the Philippines. Extended turbine delivery times are expected to drive up project costs and exacerbate existing regulatory, legal, and financial hurdles faced by gas-to-power project developers.
The Institute for Energy Economics and Financial Analysis (IEEFA) forecasts that the Philippines will likely not see any new liquefied natural gas (LNG) fired power plants come online this decade. In Vietnam, while two projects have tentatively secured turbine supply, they still require final contracts to achieve financial closure.
1 Bloomberg.Mitsubishi Heavy to Double Turbine Capacity as Demand Soars. 31 August 2025. https://www.bloomberg.com/news/articles/2025-08-31/mitsubishi-heavy-to-double-gas-turbine-capacity-as-demand-soars
