The ASEAN flare gas recovery system (FARS) marketis witnessing a significant traction, with Southeast Asia now moving towards the Trio of Sustainability (sustainable industrial development, energy efficiency, and environmental regulation).
Flaring has historically been the unwanted by-product of oil and gas production in the region, but many in the industry are beginning to realize the economic and environmental value of seizing and recycling flare gas using cutting-edge recovery systems. ASEAN market for flare gas recovery system is projected to reach USD 72 million in 2025 and USD 146.7 million by 2035, at a strong CAGR of 5.6% during the forecast period.
ASEAN flare gas recovery system are being increasingly embraced by ASEAN for greenhouse gas emission reduction, energy utilization improvement, and ESG-related compliance metrics in upstream and downstream operations. With governments in Thailand and Vietnam ramping up standards on industrial emissions and issuance of energy reuse, investments into modular, scalable FGRS-related technologies are progressing steadily.
Key Market Metrics
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 72 Million |
| Industry Value (2035F) | USD 146.7 Million |
| CAGR (2025 to 2035) | 5.6% |
With ASEAN nations stepping up efforts to reduce industrial emissions and use resources more efficiently, flare gas recovery is becoming a vital component of the region’s energy and environmental management toolbox. These systems are useful at refineries, gas treatment stations, and petrochemical factoriesfacilities that experience flare events often and have high potential for gas re-use.
FGRS has methods to recover flare gas power to reintegrate it into the fuel stream. The economic value proposition of FGRS recovering flare gas to produce power or reintegrate into the fuel stream resonates particularly well with companies looking to save money as fuel prices continue to swing widely. Governments in ASEAN are implementing stricter flaring regulations and providing incentives for energy-saving technologies, resulting in enabling conditions for longer-term FGRS deployment.
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Thailand is paving the way for Southeast Asia’s shift toward low-emission industrial operations, and its oil, gas and petrochemical companies are introducing flare gas recovery systems to comply with both local and international environmental requirements. Meanwhile, operators, including PTT and Thai Oil, are investing in FGRS as part of their refinery modernization and energy efficiency plans. Many of Thailand’s biggest industrial plants are located in the Eastern Economic Corridor (EEC), a national priority development zone.
To complement the above-mentioned necessities, FGRS deployment is being expedited in this realm to meet smart industry and sustainable infrastructure goals. Thailand’s Ministry of Energy also encourages energy recovery projects, creating an additional incentive for the widespread adoption of FGRS.
Vietnam’s energy and industrial scene is changing fast, with rising foreign investment in oil and gas, refining capacity and petrochemical plants. As environmental regulations become stricter particularly in the context of Vietnam’s commitments under the Paris Agreement flare gas recovery systems are increasingly being adopted to mitigate emissions and decrease energy losses.
The refiners in Dung Quat and the new LNG and gas-fired power plants are early adopters of FGRS technologies. The Vietnamese government’s drive for green growth and energy security is creating a climate that supports technology vendors and engineering companies that are providing recovery solutions.
Challenges
Patchwork Enforcement and Infrastructure Limit Flare Gas Recovery
Southeast Asian nations collectively flare over 200 billion cubic feet of natural gas annually, flare gas recovery is seldom practiced due to uneven rules, outdated facilities, and insufficient motivation. In Indonesia alone, over 140 bcf burn each year, yet older fields in East Kalimantan and Natuna commonly lack gas gathering networks or modular FGR units. Vietnam and the Philippines exert minimal pressure, infrastructure to seize flared gas at upstream, or midstream sites.
High Installation Costs and Murky Returns for Offshore Operations
Most production occurs offshore around Malaysia, Brunei, and Indonesia where confined quarters, harsh environments, and logistical difficulties make deploying FGR extremely pricey. Numerous smaller platforms do not run year-round or have restricted flare volumes, reducing the financial feasibility of installing compression or vapor recovery absent co-investment in monetization (e.g., flare-to-power or flare-to-hydrogen systems).
Opportunities
National Flaring Curbs and International ESG Commitments
Southeast Asian administrations are establishing flaring reduction targets as part of national net-zero blueprints. For example, Malaysia is applying flaring ceilings under PETRONAS’ Net Zero Carbon Emissions by 2050 initiative, while Indonesia incorporates FGR into its RUEN 2050 energy plan. These goals, alongside ESG reporting pressures on NOCs and IOCs, are prompting investment in FGR technology-particularly for gas reinjection, flare-to-LPG, and gas-to-steam conversion applications.
FGR as a Strategic Link to Hydrogen and Circular Carbon Projects
Nations like Vietnam and Thailand explore how FGR systems can connect to downstream decarburization initiatives. Recovered flare gas (wealthy in methane, propane, or hydrogen-bearing compounds) can be rerouted into hydrogen reformers, waste-to-fuel systems, or small-scale power generation for off-grid use. Integrating flare capture into special economic zones (SEZs) and industrial estates positions FGR as part of Southeast Asia’s clean industrial future blueprint.
From 2020 to 2024, the Southeast Asian FGR market was fragmented. Malaysia and Brunei implemented pilot systems at offshore platforms and major refineries, but other countries lagged owing to budgetary limitations, policy inertia, and COVID-19 delays. Many upstream operators continued regular flaring in remote sites, in Indonesia.
Between 2025 and 2035, the region is anticipated to pivot toward mandatory flaring reduction propelled by international climate finance access, methane pledges, and national ESG alignment. This will catalyze investments in compact FGR units, flare gas compression skids, and digital emissions tracking systems. Growth will concentrate in upstream oil and gas, LNG regasification terminals, refineries, and chemical zones across the region.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Deployment Scope | Limited to large offshore fields and select refineries |
| Technology Integration | Basic VRUs and gas reinjection pilots |
| Policy Environment | Voluntary flaring controls; weak penalties |
| Carbon Incentives | Minimal carbon monetization |
| Operator Behavior | IOCs like Shell and Total Energies led early projects |
| Market Entry Barriers | High CAPEX, lack of skilled local vendors |
| Digitalization | Manual reporting, flare tracking by spreadsheets |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Deployment Scope | Modular systems in offshore sites, SEZs, LNG terminals, and bio refineries |
| Technology Integration | AI-integrated systems, remote monitoring, and hybrid gas-to-power + storage units |
| Policy Environment | Stronger national enforcement and linkage to global carbon markets |
| Carbon Incentives | Carbon offset eligibility under Article 6 and regional offset schemes |
| Operator Behavior | NOCs mainstreaming FGR into new field development |
| Market Entry Barriers | Regional EPC capacity growth, vendor partnerships, and joint ventures with tech providers |
| Digitalization | Digital twins, IoT sensors, and government-linked GHG registries |
Myanmar’s FGRS market is still in early development, increasing investments in energy infrastructure, as well as regional partnerships, are establishing a pipeline for adoption. The limited but active oil & gas sector in the country is best positioned for flare gas recovery in onshore gas production and small-scale refineries with significant presence in the Magway and Tanintharyi regions.
And as Myanmar is increasing its waste to energy and bio-digestion capacity as part of the regional sustainability goals, flare gas recovery systems for methane capture in landfills and sewage treatment plant are also being considered. International funding and tech collaboration will be key to enabling growth in Myanmar’s FGRS segment over the next ten years.
| Country | CAGR (2025 to 2035) |
|---|---|
| Myanmar | 4.9% |
Indonesia represents one of the most attractive FGRS markets in ASEAN in light of its significant oil and gas production sources and refining infrastructure, as well as emerging mandates for industrial decarburization. In regions such as East Kalimantan, Riau, and West Java, which are major energy-producing regions, the FGRS units are deployed to reduce flaring volumes and convert flare gas into usable fuel for captive power.
During this time, state-owned enterprises such as PERTAMINA are leading the way in projects implementing skid-mounted and high-pressure FGRS systems in upstream and downstream sectors. Indonesia's participation in the Global Methane Pledge and developments in carbon pricing are in turn encouraging investment in flare gas recovery, particularly in the LNG, refining and fertilizer production sectors.
| Country | CAGR (2025 to 2035) |
|---|---|
| Indonesia | 5.8% |
The Philippines broadening the FGRS footprint through waste management,biogas and small-scale industrial energy sectors. And while there is no upstream oil & gas activity in the country, there's been some emphasis on flare gas recovery in landfill methane capture, anaerobic digestion plants, and district energy systems. Such government mandates to enhance air quality and minimize greenhouse gas emissions are pushing public and private utilities to adopt FGRS in urban areas in the country, like Metro Manila, Cebu and Davao.
Renewable natural gas (RNG) production and low-emission incineration pilot programs are also starting to integrate flare gas reuse systems. In fact, the growth of climate-smart infrastructure initiatives in public utilities will be a major catalyst for sustained adoption.
| Country | CAGR (2025 to 2035) |
|---|---|
| Philippines | 5.5% |
Singapore has limited oil & gas extraction, yet it has been a technological and regulatory leader in the ASEAN FGRS space. The city-state is deploying FGRS to petrochemical complexes, waste-to-energy plants and LNG (liquefied natural gas) terminals, specifically to recycle flare gases for fuel re-use and greenhouse gas reduction (GHG).
Initiatives like the Low Carbon Energy Research Programme and the Green Plan 2030 promote government-backed decarburization programs that incentivize deploying digitally optimized, modular FGRS systems to improve operational efficiency while eliminating methane leakage. This sets the course for Singapore to become a carbon management and clean-tech innovation hub, paving the way towards establishing the regional market for FGRS best practice in South East Asia.
| Country | CAGR (2025 to 2035) |
|---|---|
| Singapore | 6.0% |
ASEAN nations, flare gas recovery systems operating in the 5 to 10 bar range have become widespread, downstream at refineries and midstream gas processing plants. This pressure level provides an ideal balance for operators seeking cost-effective capture of moderate flare volumes minus complex high-pressure engineering.
Refineries and gas facilities in Malaysia and Thailand have opted for medium-pressure as it aligns with common scales of operation large enough for worthwhile flare gas monetization but not requiring extremely high-pressure infrastructure or expensive pipeline compression.
Indonesia and Vietnam have additionally embraced this pressure category as part of energy efficiency modernization efforts. State oil companies and private operators are retrofitting flare gas into refineries and LNG terminals to satisfy new government emissions guidelines.
Medium-pressure units allow reinjection into fuel streams, powering turbines, or low-pressure fuel networks with minimal extra processing due to their versatility, appealing among legacy equipped locations, integrating more readily than larger pressure setups and offering faster returns through truncated installation and commissioning periods.
Advancements in modular compressor design, corrosion-resistant metallurgies, and intelligent control protocols have additionally enhanced the dependability and desirability of this sector. Complete systems integrators across ASEAN now offer turnkey solutions incorporating predictive servicing abilities, enabling operators to maintain consistent output across fluctuating gas compositions.
With ASEAN countries establishing more aggressive environmental aims under domestic climate pledges and energy transition roadmaps, intermediate pressure apparatuses are anticipated to remain the primary pressure scope for operators balancing policy adherence, spending considerations, and functional flexibility in flare gas retrieval.
Modular flare gas retrieval assemblies have emerged as the preferred formation across the ASEAN region due to their compact architecture, ease of deployment, and adaptability to decentralized operations. Nations like the Philippines, Malaysia, and Thailand have increasingly embraced modular assemblies at refinery, petrochemical, and small-to-midstream installations, where area constraints and tight project timelines demand pre-engineered remedies.
These assemblies are particularly helpful in regions such as Sarawak, Mindanao, and southern Vietnam, where infrastructure progress varies widely and quick installation is essential for fulfilling emissions deadlines or expansion goals.
Modular assemblies also offer clear benefits in terms of cost oversight and operational flexibility, making them particularly attractive in emerging economies where funding is limited but environmental compliance is now mandatory. Government programs aimed at decreasing greenhouse gas emissions have incentivized the use of scalable retrieval solutions, and modular assemblies provide an approach for phased execution.
Operators can start with a basic module to capture flare gas for internal fuel use and expand to include reinjection or liquefaction capabilities later, depending on gas composition and commercial feasibility. This modular growth strategy fits well with ASEAN’s mixed industrial development landscape, where facilities range from highly modernized to semi-manual operations.
Regional providers and international engineering corporations have also adapted to demand for modularity by supplying customizable arrangements fitting nearby functioning environments, even among steaming conditions, higher dampness, and access limitations.
These arrangements are now available with built-in management reasoning, safety interlocks, and distant tracking characteristicsprincipal qualities for installations in faraway or offshore spots. As governments in the Association of Southeast Asian Nations tighten flaring reduction principles under domestic energy plans and worldwide weather structures, flexible flare fuel retrieval structures are anticipated to stay the default selection for administrators in search of swift deployment, long-term scalability, and a lower all round carbon footprint in a rapidly industrializing area.
The ASEAN FGRS market is growing steadily, driven by government-led decarburization plans, upstream production efficiency mandates, and regional engagement with global methane reduction initiatives. The large-scale deployment of FGRS remains most active in Indonesia and Malaysia, owing to their oil and gas production, Thailand, Vietnam, and Brunei have been advancing the deployment of modular and skid-mounted recovery units.
The region's flare gas recovery centers on refinery modernization, LNG plant compliance, and oilfield gas monetization projects. State-owned oil companies partner with EPC companies and global technology providers to boost recovery efficiency, alleviate carbon leakage, and achieve domestic clean energy goals.
Recent Developments
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| PT Pertamina | 28-32% |
| Petronas Gas Berhad | 22-26% |
| PTT Exploration & Production | 14-18% |
| PetroVietnam Gas JSC | 8-12% |
| Brunei Shell Petroleum | 6-10% |
| Multiple SMEs, distributors | 10-15% |
| Company Name | Key Offerings/Activities |
|---|---|
| PT Pertamina | Leads ASEAN in upstream FGRS deployment across Sumatra and Kalimantan oilfields. Collaborates with Honeywell and Zeeco for modular gas recovery and reinjection systems. Focuses on reducing routine flaring under Net Zero 2060 goals. |
| Petronas Gas Berhad | Integrates flare gas recovery at LNG complexes in Bintulu and refineries in Melaka. Siemens provides high-efficiency compressors, while Fluenta supports advanced flare monitoring. |
| PTT Exploration & Production | Implements compact, energy-efficient vapor recovery units at offshore and onshore fields. Leverages German partner BORSIG for compression systems and AI-enabled flare control. |
| PetroVietnam Gas JSC | Focuses on integrating low-pressure flare recovery at Dung Quat and Phu My gas facilities. Works with Yokogawa for instrumentation and local EPCs for skid assembly. |
| Brunei Shell Petroleum | Deploys FGR systems at offshore installations in Champion and Ampa fields. John Zink Hamworthy supplies custom low-NOx, marine-grade flare gas units. Aligned with Brunei Wawasan 2035 sustainability framework. |
The overall market size for the Flare Gas Recovery System Market was USD 72 Million in 2025.
The Flare Gas Recovery System Market is expected to reach USD 146.7 Million in 2035.
Sustainable industrial development, energy efficiency, and environmental regulations will drive the demand for the ASEAN Flare Gas Recovery System Market.
The top 5 regions driving the development of ASEAN Flare Gas Recovery System Market are Myanmar, Indonesia, Philippines, Singapore and Malaysia, due to their active hydrocarbon exploration and refining activities.
Medium Pressure Systems (5 to 10 bar) and Modular Configuration are expected to lead in the ASEAN Flare Gas Recovery System Market.
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ASEAN Flare Gas Recovery System Market
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