Energy Update: Indonesia Ban of Mineral Ore Exports to be Implemented in January

Energy Update | Date December 5-18, 2013

Authors: Alexandra Stuart, Aundrea Montaño
 
THE COUNCIL'S TAKE
 
Ban of Mineral Ore Exports Still on Track to be Implemented in January
As the deadline for the ban on all mineral ore exports nears the January 12^th date, the government continues to discuss the terms for the law passed by parliament in 2009. As one of the world’s largest exporter of nickel ore, thermal coal and refined tin, Indonesia stands to lose billions of dollars in lost revenue in an already deficit laden economy. The goal of the mineral ore export ban is to increase Indonesia’s capability to add value to its export portfolio. However, with the lack of fully operating smelting facilities, cuts in output are expected to diminish Indonesia’s ability to export within the value added chain. Already Freeport-McMoRan Copper & Gold and Newmont Mining Corp have announced that they expect decreased output if the ban takes affect with an estimated government revenue loss of at least $1.6 billion for Freeport alone. In addition to billions in lost revenue, thousands of layoffs are expected in the industry as it works to build the capacity to process domestically. Over the coming days, President Susilo Bambang Yudhoyono is expected to meet with legislators to discuss the ban and the final details of implementation. Previously, talk surfaced about easing the mineral ore ban; however, previous proposals were rejected as it was thought companies had plenty of time to prepare. Discussion in the coming days will determine the effects of the ban as it moves forward. 
 
IN THIS UPDATE
 
ASEAN
+ Energy Security: Southeast Asia Revives Nuclear Power Plans – Analysis
+ Armstrong’s SE Asia renewables fund could top US$1.2 billion
+ JPMorgan Sees 30% Increase in Asian M&A on China to Energy Deals
+ Southeast Asia Renewable Energy Market
+ APEC to look at energy at Beijing summit
+ Chevron's $6.4 billion China gas project pushed back again
 
Brunei
+ Japan, Brunei vow to strengthen energy, economic, defense ties
+ Malaysia's Petronas, Brunei Petroleum Authorities Sign Cooperation
+ Threading plant to have capacity of 20,000 tonnes a year
 
Cambodia
+  Mekong Countries Agree to Expedite Dam Study
+ Cambodia low on energy ranking
+ Suy Sem Set for Reinstatement as Minister of Mines and Energy
 
Indonesia
+ Sugih Energy to Buy Singapore-Listed Ramba in 2014
+ Paving the Way for Geothermal Energy Development in Indonesia
+ New Law on Geothermal Expected in 2014
+ Cheniere Clinches 20-Year LNG Deal with Indonesia
+ Shell Said to Be Investing $25b in Indonesia: Jero
+ RI, Sweden to develop renewable energy technologies
+ Ore export ban will force Freeport to halt most operations
+ RI’s growing petrochemical market lures foreign players
+ Ministry to Hold Talks over Ban on Mineral Exports
+ SBY has final say on ore
+ Freeport warns of output cuts, layoffs from Indonesia export ban
 
Malaysia
+ 2-part pricing tariffs drives energy efficiency
+ Energy efficiency policies are not protecting domestic and business consumers - Piarapakaran S.
 
Myanmar
+ Industry Awaits Myanmar's Offshore Exploration Block Awards
+ Renewable Dream
+ Former energy minister backs resumption of work on Myitsone dam, say MPs
+ Myanmar-China gas pipeline cheats Myanmar society: activists
+ Govt to spend US$16 M to generate electricity from trash-fired power plants
+ Electricity shortage is the major obstacle for investors
+ Environmental impact report in the pipeline
 
Philippines
+ Result of Meralco rate hike probe out soon
+ Malacañang to blame for high power rates
+ 3-phased power rate hike approved by ERC
+ Power users in for confusion
+ SMC seeks power monopoly in Bicol
+ DoE readies reserve market
+ Government moving to mitigate looming power-rate hike
+ JG Summit closes deal for Meralco shares
+ DOE to end collusion probe before 2014
+ Philippine Stocks Sink to Three-Month Low on Higher Power Prices
+ Renewable energy key to solving power woes
+ BPI loan portfolio for energy hit P11 billion
 
Thailand
+ Energy Ministry promises zero outages
+ Energy consumption rises, particularly in petrol
+ Energy Absolute to build wind and solar projects in Thailand
+ DP Cleantech to build coconut-to-energy power plant in Thailand
 
Vietnam
+ US-Vietnam nuclear deal not a reminder of Cold War
+ Energy Security: Would Vietnam’s Ninh Thuan Nuclearise Southeast Asia? – Analysis
+ Kerry talks climate dangers in Vietnam
+ General Electric Signs Deal to Develop Wind Power in Vietnam
+ Korea to provide $1 mln nuclear equipment to Vietnamese university
+ UK, Vietnam share experiences on atomic energy
+ Government tries to unknot pricing problem in wind power projects
+ Asian gasoline margins climb on Vietnam demand
+ Vietnam Faces Growing Threat of Power Blackouts: Southeast Asia
+ Vietnam to keep LPG import taxes unchanged despite price surge
+ Fuel dealers asked to hold prices steady
 
ARTICLE CLIPS
 
ASEAN
Energy Security: Southeast Asia Revives Nuclear Power Plans – Analysis Eurasia Review 12th Dec 2013
AS 2014 approaches, Southeast Asian states are proceeding with plans to push ahead with nuclear power plants, supported by generous terms provided by the governments of South Korea, Japan, China, Russia and France, which would provide the technology. Singapore has concluded that the safety risks are too high and current technology is not advanced enough to embark on the use of nuclear power technology in Singapore. In a parliamentary statement in October 2012, the Government announced that it will not pursue the nuclear option at the present time. This makes Singapore an exception in Southeast Asia.
 
Armstrong’s SE Asia renewables fund could top US$1.2 billion PV Tech 11th Dec 2013
Independent clean energy asset manager, Armstrong Asset Management, has said its South East Asia Clean Energy Fund could top US$1.2 billion, according to Bloomberg. On the 11 November Armstrong announced it had already completed fundraising of US$164 million for the debut South East Asia Clean Energy fund, exceding the initial target fund size of US$150 million. Additional investments and US$800 million in project finance have edged the fund over the US$1 billion mark. The South East Asia Clean Energy fund is a private equity fund, investing in small scale renewable energy in the region. The company said in a statement its investment in renewable energy and efficiency is driven by the high energy demands in the region and strong market fundamentals. The fund has ten investors from Europe, North America and Asia, including two new investors: the development financial institution, PROPARCO (part of Agence Française de Développement) and asset manager, Unigestion. Investors also include the International Finance Corporation (IFC) of the World Bank, development finance institutions: Global Energy Efficiency and Renewable Energy Fund, DEG (part of Germnay's KfW bank), FMO, IFC AMC and Obviam, and the Armstrong management team itself.
 
JPMorgan Sees 30% Increase in Asian M&A on China to Energy Deals Bloomberg 11th Dec 2013
JPMorgan Chase & Co. (JPM:US), the biggest U.S. lender by assets, is forecasting a 30 percent surge in the value of mergers and acquisitions the bank expects to handle in Asia next year, a rebound from this year’s decline. Energy companies, financial firms and Asian buyers expanding in the U.S. and Europe will drive a surge in activity for JPMorgan, said Rob Sivitilli, 41, who has been head of Asian M&A outside Japan since September 2012. The New York-based bank climbed this year to No. 2 among advisers in the region from No. 4 in 2012, data compiled by Bloomberg show. JPMorgan rose in deal rankings by improving communication between bankers in Asia and colleagues in North America and Europe, Sivitilli said. Takeover activity declined this year in the region as slowing economies from India to China curbed executives’ risk appetite. Mergers involving Asian companies may fall short of last year’s $311 billion after ending last week at $298 billion, data compiled by Bloomberg show.
 
Southeast Asia Renewable Energy Market Digital Journal 10th Dec 2013
Clear Policy Framework to Spur Growth This research service explores policy developments supporting the growth of renewable energy (RE) in 5 Southeast Asian countries—Malaysia, Thailand, Vietnam, the Philippines, and Indonesia. It also tracks RE projects that have been announced and are expected to be completed by 2018. The projects are in 5 different RE technologies—solar, wind, biomass, biogas, and geothermal The research service gives the yearly capacity addition for the various RE technologies during 2012 to 2018 and the yearly CAPEX addition for the same period. The competitive analysis focuses on the EPC participants in each of the different RE technologies, in the five countries, along with key success factors. Executive Summary •Globally, the renewable energy (RE) market continues to be driven by government policies and targets despite falling costs. Development of the RE market in the Southeast Asian region is no exception. Most of the countries in this region have some kind of financial incentive—feed-in-tariff policies, capital cost rebates, and net metering to name a few.
 
APEC to look at energy at Beijing summit Taipei Times 7th Dec 2013
The US has identified renewable energy as a priority for the APEC summit next year and will continue to count on Taiwan’s support in its planned initiatives to deliver sustainability, the US State Department’s senior official for APEC affairs Robert Wang said in Washington yesterday. Wang was scheduled to fly to China yesterday to attend the APEC Informal Senior Officials’ Meeting on Monday and Tuesday to discuss priorities for the APEC summit in Beijing next year with his counterparts from the other 20 APEC economies. “We are looking at, among other things, energy, security and the environment,” although the US is primarily “in a listening mood” to try to see what China wants, Wang said when asked about the US’ priorities for the summit during a discussion with reporters.
 
Chevron's $6.4 billion China gas project pushed back again Reuters 6th Dec 2013
A $6.4 billion gas project being built by Chevron CVN.X in China is facing further delays due to disagreements with partner PetroChina (0857.HK) over how to develop the technically tricky fields, three industry sources said. The Chuandongbei project, the U.S. firm's largest investment in China, is now not expected to deliver first gas until the second half of 2014, nearly 7 years after the firms clinched a 30-year deal to produce 7.6 billion cubic meters of gas a year. The latest setback follows a series of delays for Chuandongbei, which Chevron has described as one of its larger capital projects for 2013. PetroChina initially expected first gas to be delivered in 2010, while its parent CNPC forecast just four months ago that production would start by end-2013. China, the world's top energy user, but the fourth-largest consumer of gas, is racing to unlock supplies of the cleaner-burning fuel by boosting imports and domestic exploration. "There are some discrepancies over how to develop the fields between PetroChina and Chevron," said a Beijing-based industry official with knowledge of the project, a 2,000 square-kilometer block in Sichuan basin in southwest China.
 
Brunei
Japan, Brunei vow to strengthen energy, economic, defense ties Global Post 13th Dec 2013
Japanese Prime Minister Shinzo Abe and Brunei Sultan Hassanal Bolkiah agreed Friday to strengthen bilateral cooperation in the fields of energy, economics and defense. "We agreed to work for more aggressive bilateral exchanges on this commemorative occasion," Abe told a joint press conference with Bolkiah in Tokyo ahead of a Japan-ASEAN summit to start later Friday. Abe said he explained his security policy of making Japan a proactive contributor to peace as the two leaders discussed regional and international issues. Abe and Bolkiah, meeting for the third time this year, also agreed to work closely together for the success of the summit, including the main session Saturday, as Japan serves as the host and Brunei holds the chair of the Association of Southeast Asian Nations for this year.
 
Malaysia's Petronas, Brunei Petroleum Authorities Sign Cooperation Wall Street Journal 9th Dec 2013
Petroliam Nasional Bhd. has signed pacts with Brunei petroleum authorities including agreements for PetroleumBRUNEI to buy a stake in Petronas' Canadian shale-gas asset and share natural gas output. Petronas has been lining up partners after acquiring Canadian energy company Progress Energy Resources Corp for $5.25 billion in December 2012. It sold a 10% stake to Japan Petroleum Exploration Co. Ltd. (1662.TO) and is in talks with other potential partners as part of a plan to develop a liquefied natural gas terminal exporting to Asia. Brunei National Petroleum Company Sdn Bhd., also known as PetroleumBRUNEI, has agreed to buy 3% in Progress and in the proposed Pacific NorthWest LNG export facility, Petronas said in a statement. PetroleumBRUNEI will also buy a 3% of its output for at least 20 years. "Petronas views the agreements reached with the Brunei petroleum authorities as a positive step forward in strengthening its presence in Brunei and deepening its relationship with its Brunei counterpart for mutual future growth in Brunei, Malaysia and elsewhere," Petronas added.
 
Threading plant to have capacity of 20,000 tonnes a year Brunei Times 6th Dec 2013
The $32 million facility for an integrated Oil Country Tubular Goods (OCTG) supply and threading plant to be constructed next year will have a capacity to produce approximately 20,000 tonnes a year. In an email interview with The Brunei Times, Sumitomo Corporation, one of the parties that have signed on to this project, said the semi-finished products will be produced in Wakayama, Japan or Vallourec & Sumitomo Tubos (VSB), Brazil. Signing the agreement with Brunei Shell Petroleum were Nippon Steel and Sumitomo Metal Corporation (NSSMC) and Sumitomo Corporation in a ceremony held at The Empire Hotel & Country Club, recently.
 
Cambodia
Mekong Countries Agree to Expedite Dam Study Cambodia Daily 16th Dec 2013
The Mekong River Commission’s (MRC) study on the potential long-term effects of large-scale dam building on the Mekong River needs to be expedited, members of the MRC agreed at the Fifth Mekong-Japan Summit in Tokyo on Saturday. However, they did not set a date for the completion of the study or agree to abide by its recommendations.
 
Cambodia low on energy ranking PPP 12th Dec 2013
Low electrification rates and over-dependence on fossil fuel imports have contributed to Cambodia’s abysmally low ranking in the new World Economic Forum’s Global Energy Architecture Performance Index Report for 2014. Cambodia ranked 120 out of 124 nations, with a so-called Energy Architecture Performance Index (EAPI) score of 0.36. EAPI is calculated by averaging the country’s scores in economic growth and development, environmental sustainability, access to energy and energy security. Discounting Myanmar and Laos, which weren’t included in the index due to lack of data, Cambodia came in dead last among the remaining members of Association of Southeast Asian Nations (Asean). “The [Asean] region’s lowest-performing country across energy access-related indicators is Cambodia. It achieves the lowest access to electricity relative to population (at 31 per cent), and nearly 90 per cent using solid cooking fuels,” the report said. Cambodia placed ahead of only Tanzania, Benin, Lebanon and Yemen. Norway was in the top slot of all the 124 countries with an EAPI of 0.75. The highest possible obtainable score is 1.
 
Suy Sem Set for Reinstatement as Minister of Mines and Energy Cambodia Daily 7th Dec 2013
The National Assembly will vote this month to decide whether the ruling CPP’s recently removed Minister of Industry, Mines and Energy, Suy Sem, will be appointed as the new Minister of Mines and Energy, CPP lawmaker Chheang Vun said Friday. Mr. Sem’s return to his old, but newly-renamed, ministry would mean that former Commerce Minister Cham Prasidh is now the new Minister of Industry and Handicrafts.
 
Indonesia
Sugih Energy to Buy Singapore-Listed Ramba in 2014 Jakarta Globe 16th Dec 2013
?Indonesian oil and gas firm Sugih Energy expects to conclude its acquisition of oil and logistics company Ramba Energy early next year. Sugih announced its intention to buy 51 percent of Ramba last September, paying $89 million for the firm. “After having obtained approval from Singapore’s Securities Industry Council, we are hoping to finalize the acquisition in the first quarter of next year,” Fachmi Zarkasi, a director at Sugih, said on Monday. Fachmi said Sugih was in discussions with several lenders to finance the takeover, including a number of foreign banks. “We don’t know yet how big the loan will be, we are still negotiating,” Fachmi said. Despite being listed in Singapore, Ramba Energy is Indonesian-owned and it controls three oil and gas assets in this country. Ramba has a 51 percent participating interest in the Lemang block in Riau province, with the remaining stake controlled by Sugih. The block has 511 million barrels of oil reserves and 468 billion cubic feet of gas. Andhika Anindyaguna, president director of Sugih, said Ramba has two other oil blocks of interest to his company.
 
Paving the Way for Geothermal Energy Development in Indonesia Indonesia-Investments 14th Dec 2013
Asep Sugiharta, an official at the Ministry of Forestry, said that a new bill has been submitted to Indonesia's parliament (DPR) which is expected to open up the potential for geothermal power development in Indonesia. Currently, geothermal exploitation is lawfully defined as a 'mining activity' (Law No. 27 2003) and therefore prohibited to be conducted in protected forest and conservation areas (Law No. 41 1999), even though geothermal mining activities have a relatively small impact on the environment (compared to other mining activities). As about 60 percent of Indonesia's geothermal energy is located in conservation areas, it therefore seriously blocks the development of the country's geothermal potential. The new bill, which is expected to become in force in April 2014, will separate geothermal development from mining activities. With about 40 percent of total global geothermal energy potential, Indonesia is estimated to have the world's largest geothermal energy reserves. Indonesia's largest reserves are located in the western part of the country (Sumatra, Java and Bali). However, the country only taps about four to five percent of its geothermal potential as exploration as well as exploitation are hindered by law.
 
New Law on Geothermal Expected in 2014 Jakarta Globe 13th Dec 2013
Indonesia is expected to pass a new law on the geothermal industry early next year, paving the way for the country to develop its geothermal potential, a forestry ministry official said. Asep Sugiharta, an official dealing with forest protection and biodiversity conservation at the Ministry of Forestry, said a proposed bill, which has been submitted to House of Representatives Commission VII, which oversees energy affairs, is set to become a landmark in the development of the energy business in Indonesia. He said the bill was expected to become law in April next year. “We’re not purposely trying to be an obstacle to geothermal development, but our key principle is maintaining forest conservation,” Asep said in Jakarta. He was one of the speakers at an event organized by the World Wide Fund for Nature. The WWF recently launched the second edition of its report titled Sustainability Guidelines for Geothermal Development in Forest Areas. Under current law, geothermal exploitation is described as a “mining activity,” which means it is restricted from conservation areas. This is a major hurdle in the development of geothermal energy as the majority of resources are located in conservation areas, which are strictly supervised by the forestry ministry. The new law is aimed at removing the association between geothermal and mining activities.
 
Cheniere Clinches 20-Year LNG Deal with Indonesia Oil Price 11th Dec 2013
Texas-based Cheniere Energy Inc. has signed a 20-year contract with Indonesia’s state-owned Pertamina, which will purchase 0.8 million tons annually of LNG for the duration of the 2-decade agreement. The agreement signed last week between Corpus Christi Liquefaction LLC, a Cheniere subsidiary, and Pertamina will enter into force as soon as operations begin at the LNG facility, with the first deliveries anticipated in 2018. The Corpus Christi plant has a design and permit capacity of three trains and 13.5 mtpa of LNG. Pertamina will purchase LNG on an FOB basis with prices indexed to the monthly Henry Hub price plus a fixed component.
 
Shell Said to Be Investing $25b in Indonesia: Jero Jakarta Globe 10th Dec 2013
Royal Dutch Shell plans to increase its investment in Indonesia to $25 billion in the next 10 years to develop oil and gas fields, according to Energy and Mineral Resources Minister Jero Wacik. The investment by the Anglo-Dutch energy company will be allocated for the development of oil and gas blocks in Masela, in Maluku province as well in as other regions. Masela Block is estimated to have 18.47 trillion cubic feet of proved and probable gas reserves, as certified by consultants DeGolyer & MacNaughton. Peter Voser, outgoing chief executive of Shell and Shell’s newly appointed chief executive, Ben van Beurden, presented Shell’s major investment plan to President Susilo Bambang Yudhoyono at the Naval Academy Building in Surabaya on Saturday. Voser, whose employment ends on Dec. 31, took the opportunity to say farewell to Indonesia’s president, and introduced his successor Van Beurden, who will take his place on Jan. 1. “I appreciate that a CEO of his caliber, who resides overseas, wants to say goodbye to the president of Indonesia. We have to maintain a relationship with Shell,” said Jero. The Indonesian government said it welcomed Shell’s plans to transfer the company’s technology in converting engines on Indonesian ships to operate on gas instead of diesel.
 
RI, Sweden to develop renewable energy technologies Jakarta Post 8th Dec 2013
The Indonesian-Swedish Initiative for Sustainable Energy Solutions (INSISTS) will be working to assist the Indonesian government in developing its renewable energy policy, including reducing the damage to tropical forests caused by excessive development of oil palm plantations. “Indonesia and Sweden are two countries that have high ambitions to reduce carbon emissions and, therefore, it is really important to focus on renewable energy,” Swedish Ambassador to Indonesia Ewa Polano said in Yogyakarta on Saturday. She was in Yogyakarta to witness the official inauguration of an INSISTS research department at Gadjah Mada University (UGM). The research institution has been jointly established by the National Energy Council (DEN) and the Swedish Energy Agency (SEA) under an agreement signed between DEN's secretary-general, Hadi Prayitno, and SEA director Erik Brandsma. “INSISTS is the first Swedish-Indonesian research partnership center. Now, we have a representative office in Yogyakarta. This is a great gift from UGM,” Polano said. She added that the research center was the first center for sustainable energy solutions in the whole of Asia.
 
Ore export ban will force Freeport to halt most operations Jakarta Post 13th Dec 2013
PT Freeport Indonesia, a subsidiary of US-based Freeport McMoRan Copper and Gold Inc., says it may have to shut down most operations at its Grasberg mine in Papua if the ban on raw ore exports set to take effect in January goes through as planned. Freeport Indonesia president director Rozik Soetjipto said on Thursday that the company would have to cut its production by 60 percent, since the existing smelting plant it used would not be able to process the company’s entire ore output. He also said that the copper and gold mining giant would have to lay off more than half of the company’s employees, or around 16,000 workers. “If forced, we are ready with production adjustment. However, we don’t know how long that can last. The overhead cost will be huge, and layoffs will happen,” Rozik said over the phone on Thursday. Currently, Freeport Indonesia delivers 40 percent of its annual production of around 2.5 million tons of copper concentrates to a local smelter belonging to PT Smelting in Gresik, East Java. The company has a 25 percent stake in Smelting, which produces 300,000 tons of copper cathode per year.
 
RI’s growing petrochemical market lures foreign players Jakarta Post 12th Dec 2013
Thailand-based PTT Global Chemical Public Company Limited, the chemical flagship of the giant PTT Group, signed an agreement on Tuesday with state-owned PT Pertamina on a joint venture to develop a petrochemical complex in Plaju, South Sumatra. Under the agreement, Pertamina will hold a 51 percent stake while PTT Global Chemical will have the remaining 49 percent. “PTT Global Chemical may find another partner with the consent of Pertamina,” Pertamina director Chrisna Damayanto said after the signing of the agreement on Tuesday. The companies will jointly develop the petrochemical complex on a 450-hectare-site in Plaju that will house, among other facilities, a naphtha cracker with a production capacity of 1 million tons per year, Chrisna said. Meanwhile, according to Bowon Vongsinudom, PTT Global Chemical president and chief executive officer, the project is estimated to cost between US$4 billion and $5 billion.
 
Ministry to Hold Talks over Ban on Mineral Exports Tempo 12th Dec 2013
Trade Minister Gita Wirjawan on Wednesday said the government will soon discuss the terms on the ban on mineral exports, which will be effective in January 2014. "This will be discussed in the next few days. The issue was raised by the coordinating economic minister (Hatta Rajasa) to be discussed further with the president," he said. The government first began to consider banning raw mineral exports as an effort to reduce tin exports, explained Gita. Aside from that, this prohibition will also be aimed at curbing illegal mining so exported minerals will be processed domestically before being exported. As a result, Indonesia will be able to receive added value. Mineral exports in November 2013 alone reached over 6,000 tons, three times more than the total volume of mineral exports in January this year. The state agreed to ban the export of raw ore during a meeting between the Energy and Mineral Ministry and the Energy Commission (Commission VII) held on Thursday, December 5. Beginning January 12, 2014, mining firms must process ore in domestic smelters before exporting them.
 
SBY has final say on ore The Jakarta Globe 12th Dec 2013
The fate of the country’s mining industry is in the hands of President Susilo Bambang Yudhoyono after legislators rejected the government’s proposal to ease the upcoming ban on raw ore exports. Trade Minister Gita Wirjawan said Wednesday that the President had the final say on the issue. The President will hold talks with the relevant ministers over the next few days to put an end to the debate, Gita said. “The president will then decide.” From next month mining firms must process ores locally, giving added value to the commodities before export, a move that Indonesia has taken to spur growth in its downstream mining industry.
 
Freeport warns of output cuts, layoffs from Indonesia export ban Reuters 12th Dec 2013
Freeport McMoRan Copper & Gold warned that Indonesia's plan to ban mineral exports from next month would cut the firm's revenues in the country by 65 percent, costing Southeast Asia's biggest economy $1.6 billion in lost revenue next year. From January, mining companies must process ore before shipping it overseas, part of policies aimed at boosting the value of exports of raw materials from Indonesia, the world's top exporter of nickel ore, thermal coal and refined tin. But a tumbling currency, a precarious trade deficit and protests from industry have made the Southeast Asian nation reconsider the step. Indonesian President Susilo Bambang Yudhoyono is expected to make a final decision soon on the ban.
 
Malaysia
2-part pricing tariffs drives energy efficiency FMT 12th Dec 2013
Electricity tariff adjustment in Malaysia, effective Jan 1, 2014, has created much buzz that has even drawn unexpected criticism from one Minister, Khairy Jamaluddin who thinks the new tariff will further fatten national electricity utility, Tenaga Nasional Bhd’s (TNB), profit margin at expense of consumers impacted by rising cost of living. Two opinion leaders have subsequently responded to Khairy: Blogger Rockybru has highlighted that the RM0.0499 per kilowatt hour (kWh) adjustment has nothing to do with fattening TNB’s profit margin, but a subsidy rationalisation effort that will enable the government to save RM4 billion in fuel cost from subsidy to TNB for the power generation sector. Even with the tariff adjustment, where 82% of RM0.0409 adjustment is for fuel cost in power generation, government still incurs a RM14 billion fuel subsidy bill to cushion Malaysians from fluctuations in global energy prices. Rockybru also highlighted that the government has ensured that 70% of consumers are not affected by the tariff hikes.
 
Energy efficiency policies are not protecting domestic and business consumers - Piarapakaran S. Malaysian Insider 10th Dec 2013
The Association of Water and Energy Research Malaysia (AWER) would like to respond to the comment by Johnny Yuen, on '2-part pricing tariff drives energy efficiency for consumers,' who is attached to the Centre of Strategic Engagement (CENSE) a public relation consultant for MyPower Corporation that is 'in charge' of the current tariff increase. There is nothing cheeky in pointing out the technology issue related to energy efficiency in the generation sector. No one is singling out IPPs alone. Johnny was so obsessed in protecting the need for Independent Power Producers (IPPs) existence in Malaysia. No one in Malaysia would be against any industry that would do a reasonable business. If open bidding is done and the lowest bidder wins, why not? Why not do more open biddings to plant up new and efficient power plants? Johnny has made it available that gas plants can reach 60% efficiency. He argued old plants might be preferable due to higher capital expenditure of new and efficient power plants. In reality, fuel cost is the biggest component in our tariff structure. Moreover, the extended power plants have a higher tariff compared to the new and more efficient plant.
 
Myanmar
Industry Awaits Myanmar's Offshore Exploration Block Awards Rigzone 16th Dec 2013
Industry players are watching with interest an impending tender award by Myanmar’s Ministry of Energy for 30 offshore oil and gas exploration blocks, which has attracted bidding by several major international oil companies (IOC) that were absent in previous tenders. The outcome of the tender will highlight the progress, or lack of one, as the country attempts to improve the climate for energy investments. Efforts to attract foreign investments into Myanmar have remained a challenge for the government as the state is still reeling from the effects of several decades of economic isolation under military rule. The country, which opened itself to foreign investments after Thein Sein assumed the presidency in March 2011 and introduced political and economic reforms, have still not fully addressed foreign investors’ concerns. While the pace of reforms in Myanmar was slower than anticipated, there were some attempts to bring the country’s energy sector in line with global practices. Electricity prices were raised in January 2012 as part of power sector reforms, while diesel and gasoline prices were indexed to Singapore spot market prices in 2011, the International Energy Agency (IEA) said in its “Southeast Asia Energy Outlook.”
 
Renewable Dream Mizzima 7th Dec 2013
Can wind, sun and hot springs solve Myanmar’s electricity crisis? Renewable energy resources offer Myanmar a cheaper and more cost-effective way out of the country’s dire electricity shortages than coal or gas and diesel, an international business analysis company believes. “Power supply is one of the biggest hindrances for economic progress and foreign investment to Myanmar... Since the beginning of the year, manufacturers in Yangon and Mandalay have complained that electricity shortages due to drought were causing operating costs to increase and putting the viability of some industries in the cities at risk,” says Business Monitor International (BMI) in a study on the country’s energy problems. It notes that Myanmar is over-reliant on hydro-dam systems on rivers and other water-flow systems, most of which are under-productive during the dry season. Wind and solar “farms” offer more reliable and less costly alternatives, said London-based BMI. “The country is heavily reliant on hydropower for electricity generation – 70 percent in 2010 – and this reliance has grown in recent years. However, the country experiences several dry periods throughout the year. This resulted in lower utilisation rates for hydropower capacity, exacerbating the existing energy shortage.
 
Former energy minister backs resumption of work on Myitsone dam, say MPs Mizzima 6th Dec 2013
The chairman of a parliamentary environment committee has expressed support for resuming work on the Chinese-backed Myitsone dam on the Ayeyarwady River, three members of the Pyithu Hluttaw have revealed. On September 30, 2011, President U Thein Sein suspended work on the controversial project for the term of his presidency, in a decision greeted by national acclaimthat followed widespread and escalating protests. U Lun Thi, the chairman of the Pyithu Hluttaw Natural Resources and Environment Conservation Committee, expressed support for resuming work on the dam during a meeting in Nay Pyi Taw on December 4 with members of a counterpart committee from China’s National People’s Congress, or parliament, the three MPs told Mizzima. The three, U TheinLwin, U Thein Yi and U Min Thu, are members of the committee, which arranged the meeting to discuss the conservation of the environment and endangered wildlife. “Our chairman said this hydropower project had to be suspended because of the instigation of the international community and people from outside,” U Thein Yi (Htantabin constituency), quoted U Lun Thi as saying. “He added that the project could be resumed after conducting a survey and report on its environmental impact and benefits by an independent, international standard consultancy,” he said. U Thein Yi said he believed that U Lun Thi made the comments because he wanted to demonstrate the friendship between Myanmar and China.
 
Myanmar-China gas pipeline cheats Myanmar society: activists Eleven Myanmar 15th Dec 2013
Myanmar-China natural gas pipeline project is a cheat to the Myanmar society, say locals and law experts at a press conference titled “Development and Responsible Investment” held in Yangon yesterday. They also expressed disappointment over the government’s ignoring over the project. The former junta authorized China’s state-own China National Petroleum Corporation (CNPC) to implement the project, which is now supplying natural gas through the pipeline to China. “Did locals know about the project in advance? Or they knew it only after bulldozers entered their farms? When there were widespread public campaigns about possible dangers when you use mobile phones and smoke at gas stations in Yangon, local people used to live near the pipeline, cooking and living there. It showed there was no public awareness campaigns and transparency about the project. The whole society faced loses because of the project while the government ignoring,” said advocate Han Shin Win at the forum.
 
Govt to spend US$16 M to generate electricity from trash-fired power plants Eleven Myanmar 15th Dec 2013
Government is planning to buy trash-fired power plants to produce electricity with a loan from Japan, Yangon Mayor Hla Myint said in Yangon region parliament session on Thursday. The plants will cost US$16 million and government will get an US$8 million loan from Japan. Yangon City Development Council (YCDC) will provide the rest. The incineration plant located near Taw Kyaung Lay cemetery beside Hlawgar Road can only generate enough energy to run itself. YCDC has chosen Chasson International Korea Co. Ltd. to generate electricity from Htein Pin garbage pit and the joint-ventured company of a local company Zeya & Association and Hondi (Korea) to generate electricity from Dawei Chaung garbage pit among 43 companies who submitted the proposal for the tender offered by YCDC. The electricity generated from trash-fired power plants is intended to sell to industrial zones. The company [Chasson International Korea Co. Ltd.] has planned to generate electricity at Htein Pin garbage pit with three-year plan. In first-year, the power plant can generate 12 megawatt per hour and in second year, if can produce 10 megawatt per hour. In final phase, it can generate 8 megawatt per hour.
 
Electricity shortage is the major obstacle for investors Eleven Myanmar 14th Dec 2013
Mr. Isamu Wakamatsu of JETRO said that the major obstacle for those want to invest in Myanmar is the shortage of electricity. Mr. Isamu Wakamatsu of JETRO said that the major obstacle for those want to invest in Myanmar is the shortage of electricity. Mr. Isamu Wakamatsu, Director of Asia Pacific Ocean of Japan External Trade Organization (JETRO) said these words on meeting with journalists of ten ASEAN nations at the headquarters of JETRO, Tokyo on 11 December. At present ASEAN+10 is the biggest trade partner after China and the regional bloc have traded over US $ 90 billion this year, according to figure released in October 2013. This equates to 15 percent of Japan’s trade volume. For the individual importing country in ASEAN, Malaysia and Indonesia are the largest importers next to Japan while Thailand, Vietnam, the Philippines, Singapore and Brunei listed among the top 50 countries. According to the survey conducted by JETRO, beside the shortage of electricity, high production cost, lack of skillful workers, difficulties in getting raw materials, and scarcity in basic needs listed one after another in the survey.
 
Environmental impact report in the pipeline Myanmar Times 8th Dec 2013
As controversy continues to swirl around the now-complete natural gas pipeline from Rakhine State to the Chinese border, critics say they will soon release a report on the environmental and social impact of the project. The group, Myanmar-China Pipeline Watch Committee, is also continuing to press the issue of compensation for land acquired by the pipeline operators. Although finished, it remains unclear where the profits from the pipeline will wind up, one watchdog group said. “We are collecting data on land use and the impact of both the natural gas and crude oil pipeline projects. This process is expected to be complete by mid-December. We will say more about the pipeline impact at that time,” said U Tin Thit, an adviser to the Myanmar-China Pipeline Watch Committee. The committee comprises 25 civil society groups active in 21 townships along the route of both the natural gas and crude oil pipelines from Rakhine State to the border with China.
 
Philippines
Result of Meralco rate hike probe out soon The Rappler 16th Dec 2013
The government will release on December 30 the results of its investigation into the power rate hike of Manila Electric Company (Meralco). Conducted by the Department of Energy (DOE), the Energy Regulatory Commission (ERC) and the Philippine Electricity Market Corporation (PEMC), the probe will determine if there was collusion among power producers when 6 power plants underwent unscheduled outages. Along with a month-long maintenance shutdown of the Malampaya natural gas plant in Palawan, the outages forced Meralco to source additional power from the Wholesale Electricity Spot Market (WESM) and other plants that run on diesel. These led to a P4.15 per killowatt-hour (kWh) staggered power rate hike. Energy Secretary Carlos Jericho Petilla said that whether or not there was collusion, the government may formulate a new policy to prevent the same scenario from happening again. Meralco, for its part, explained that it does not profit from the generation charge – the cost of producing power that forms bulk of the hike. Payment for the generation charge, which went up by P3.44 per (kWh), goes directly to power producers, said Meralco. It also clarified that its distribution cost remains the same. It attributed the rest of the rate hike to taxes and adjustments in transmission and system loss charges.
 
Malacañang to blame for high power rates Inquirer 16th Dec 2013
The existence of a power cartel in the local electric power industry and the policy of electricity rates deregulation of the current and past administrations are the primary factors behind not just the impending power rate hike but also the high cost of electricity in the Philippines. The Energy Regulatory Commission (ERC) is acting like a mere “rubber stamp” of the local power cartel, approving electricity rate hikes left and right without any thought of the public. In fact, it is acting like their spokesperson and public defender. This does not come as a surprise, considering how President Aquino, the ERC’s boss, has supported the overpricing of petroleum products and water, and the proposed LRT/MRT fare hikes. Four large capitalists dominate generation, transmission and distribution in the electricity industry: Danding Cojuangco’s San Miguel Corp., the Lopez family’s First Gen, the Aboitiz family, and Henry Sy. Thus, news reports that several power producers are manipulating the reported steep rise in the price of electricity does not surprise us. This was guaranteed by the privatization of the electric power industry, which is mandated by the Electric Power Industry Reform Act of 2001 (Epira). But despite President Aquino’s usual practice of blaming his administration’s failures and problems on his predecessor, he has remained silent on former President Gloria Arroyo’s Epira. In fact, he has allowed House Bill 256, which seeks to scrap the Epira, to gather dust in Congress’ archives.
 
3-phased power rate hike approved by ERC Philippine Star 16th Dec 2013
The Manila Electric Co. (Meralco) will push through with its huge rate increase – but in three phases, with the biggest hike scheduled for this Christmas season, the Energy Regulatory Commission (ERC) announced yesterday. The ERC said it approved a staggered billing scheme for the implementation of the P3.44 per kilowatt-hour (kwh) increase in the generation charge of Meralco to cushion its impact on households. Meralco is the country’s biggest power distributor. Based on the approved scheme, the P3.44 per kwh hike in the generation charge would be collected in three installments: P2 per kwh this month, P1 in February and 44 centavos per kwh in March. But with the P3.44 representing only the generation charge, a final – and possibly higher – billing figure is set to be issued by Meralco within the week.
 
Power users in for confusion Inquirer News 13th Dec 2013
Consumers may be in for a confusing period as regulators and market players determine what constitutes collusion and just how much impact it has on electricity rates. The power suppliers’ alleged timing of plant outages to influence prices likely had only a “minimal” impact, if any, on the looming increase in electricity prices for customers of the Manila Electric Co. (Meralco), according to Energy Secretary Jericho Petilla. The Department of Energy is looking into power suppliers’ activities during the maintenance shutdown of the Malampaya natural gas facility while the Energy Regulatory Commission (ERC) will determine what sanctions may be imposed on price-fixing violators, if any, said Petilla in text message.
 
SMC seeks power monopoly in Bicol The Manila Times 12th Dec 2013
San Miguel Corp. (SMC) is reportedly buying ailing electric cooperatives in Bicol as part of its plan to monopolize power distribution in the region, the head of an anti-crime and corruption watchdog said on Thursday. Dante Jimenez, chairman of the Volunteers Against crime and Corruption (VACC) and concurrent regional lead convenor of the Bicol Autonomy Movement (BAM), said that residents are “up in arms,” convinced that the concession agreement awarded to SMC would “surely jack up power rates.” “The award of the concession agreement was not aboveboard. In fact, it was railroaded. This is the direction being taken by Ramon Ang, to gobble up electric cooperatives. He started with Albay Electric Cooperative [Aleco]. Next in line is the Camarines Sur Electric Cooperative [Casureco],” Jimenez told The Manila Times. Ang is SMC president.
 
DoE readies reserve market Business World 12th Dec 2013
THE DEPARTMENT of Energy (DoE) has called on power industry participants to start preparations for the establishment of a power reserve market, intended to accommodate back-up supply in the Luzon and Visayas grids and scheduled to go online next March.
 
Government moving to mitigate looming power-rate hike Business Mirror 11th Dec 2013
Malacanang on Wednesday assured consumers that the government is moving to mitigate the impact of a new wave of increases in power rates starting this month. “The government’s foremost concern is to ease the people’s burden on the imposition of power-rate adjustments brought about by the Malampaya shutdown,” Presidential Communications Operations Office Secretary Herminio B. Coloma Jr. said. He added that the Department of Energy (DOE) is now working with the Energy Regulatory Commission (ERC) “to address this concern.” Coloma told reporters at a Palace news briefing that the ERC is adopting the approach of the DOE for a staggered implementation of the adjustment in three tranches.
 
JG Summit closes deal for Meralco shares The Manila Times 11th Dec 2013
The Gokongwei-led JG Summit Holdings, Inc. has formalized its entry in the country’s largest power distributor as it completes the acquisition of the stake in Manila Electric Co. (Meralco) from conglomerate San Miguel Corp. (SMC). A disclosure to the Philippine Stock Exchange on Wednesday showed that JG Summit successfully completed the acquisition of 305.7 million common shares of Meralco from SMC, San Miguel Pure Foods Co. Inc., and SMC Global Power Holdings Corp. Few weeks ago, JG Summit did several fund-raising activities to come up with the amount it owes to SMC for the Meralco shares. Specifically, JG Summit tapped the bond market with a plan to raise up to P30 billion in order to fund its acquisition of all the remaining stake of SMC in Meralco.
 
DOE to end collusion probe before 2014 The Manila Times 11th Dec 2013
The Department of Energy (DOE) will try to fast-track the probe on the possible collusion among power suppliers that led to the highest power price hike to be implemented in the Philippine history, and targets to close the investigation by year-end. A day after the Energy Regulatory Commission (ERC) approved Manila Electric Co.’s (Meralco) plan to charge the P4.15 per kilowatt-hour (kwh) increase in the consumers’ electricity bill in three tranches, the DOE announced that it will investigate whether there was collusion among power suppliers. DOE Undersecretary Raul Aguilos said during a House Committee on Energy hearing on Tuesday that eight power plants in the provinces of Zambales and Batangas did several unplanned and unscheduled shutdown, which later on resulted in the power rate hike. Energy Secretary Jericho Petilla told The Manila Times over a phone interview that given that the agency is expecting a minimal impact if ever there was indeed a collusion, the investigation, which started on Wednesday with an “internal analysis,” should end by year-end.
 
Philippine Stocks Sink to Three-Month Low on Higher Power Prices Bloomberg Businessweek 10th Dec 2013
The Philippines’ benchmark stock index sank to a three-month low and bonds fell on concern inflation will accelerate after regulators allowed the nation’s biggest power supplier to increase prices by a record. The peso weakened. The Philippine Stock Exchange Index fell 2 percent to 5,886.40 at the close in Manila, the most among Asian equity gauges. The peso depreciated 0.4 percent to 44.315 per dollar, while two-year bond yields rose to a two-week high. The Energy Regulatory Commission said late yesterday Manila Electric Co. (MER) could boost rates in three phases, with the biggest increase scheduled for this month. Inflation accelerated to a nine-month high in November as a powerful typhoon damaged crops, crippled infrastructure and downed power lines, data showed last week. At least three oil companies including Petron Corp. (PCOR) raised diesel and kerosene prices today, Interaksyon reported. Philippine stocks, the world’s third best-performers in the past five years, are leading losses in Asia over the last four weeks.
 
Renewable energy key to solving power woes Business Mirror 7th Dec 2013
RISING electricity costs, power-supply shortage and the continued demand for power are among the many reasons this country is pushing for the use of a more sustainable, reliable, clean and affordable energy supply—renewable energy, or RE. The Philippines ranks among the countries with the most expensive power rates in Asia and remains dependent on imported coal, which makes it vulnerable to the volatility of international fuel markets. The power-generation mix in the country is dominated by coal with 37 percent and natural gas with 30 percent; the share of RE accounts for 28 percent. Consumer demand for energy in the country is simultaneously growing with the economy at around 7 percent a year. According to the International Energy Agency, the country has to more than double the installed capacity by 2030. The Philippines, particularly Luzon, would face a power crisis by 2015 if no additional power-generation plants were built. The situation would be exacerbated by the declining supply of coal and fossil fuel. Recently, the power outage in the Visayas resulting from Supertyphoon Yolanda (international code name Haiyan) exposed the difficult challenges in electricity transmission and distribution to island communities. This is where renewable resources, which include geothermal, wind, solar, ocean, hydro and biomass power, come into the picture.
 
BPI loan portfolio for energy hit P11 billion Business Mirror 6th Dec 2013
The Bank of the Philippine Islands (BPI) on Friday reported having funded P11 billion worth of energy programs with explicit support from the International Finance Corp. (IFC), the private investment arm of the World Bank. BPI, along with many other local lenders, earlier committed to support the IFC’s sustainable energy finance (SEF) program, which has already helped more than 100 energy efficiency and renewable-energy projects across the country. As a result, the United Nations Framework Convention on Climate Change (UNFCCC) recognized IFC’s outstanding SEF program in the Philippines in award ceremonies in Warsaw, Poland, on November 21. The Philippines and five other countries were recognized for successful financial innovations supporting investments in climate-change adaptation and mitigation. The country’s SEF program has helped client-banks identify and develop energy efficiency and renewable-energy projects that BPI subsequently financed. BPI’s pioneering partnership with IFC also led other banks, like BDO, China Bank and BPI Globe BanKO, to do sustainable energy financing programs of their own. The program is supported by the Global Environment Facility and the Clean Technology Fund.
 
Thailand
Energy Ministry promises zero outages The Nation 18th Dec 2013
The Energy Ministry has revised its target from its original schedule of zero outages in 2018 to no power blackouts at all by 2015 in the Map Ta Phut Complex. This is part of the ministry's efforts to boost electricity security in the region. The ministry's permanent secretary, Suthep Liumsirijarern, mentioned this after meeting representatives of the Industrial Estate Authority of Thailand, the Electricity Generating Authority of Thailand (Egat), the Provincial Electricity Authority and PTT recently. The 30,000-rai complex in Rayong is comprised of Map Ta Phut Industrial Estate, Asia Industrial Estate, Padaeng Industrial Estate, Hemaraj Eastern Industrial Estate (Map Ta Phut) and RIL Industrial Estate. Suthep has also asked Egat to speed up its plans to set up a power substation in the complex and improve the transmission-line system in the area. The Cabinet approved Bt12 billion for Egat to implement and improve the transmission-line system in the zone. He has also told PTT to study the trend of electricity demands in the complex. Suthep said a study on the impact of outages in the complex, which is a key contributor to the country's economic development, found that the complex experiences a blackout once a year on average, which causes loss of business opportunities worth about Bt4 billion per year.
 
Energy consumption rises, particularly in petrol The Nation 17th Dec 2013
Thailand's petrol consumption in the first 11 months of this year rose 7.6 per cent from the same period last year, thanks to the delivery of new passenger cars, according to the Energy Business Department. In 2013, 1 million new vehicles were registered. The department revealed that petrol consumption in the period rose from 20.8 million litres a day to 22.4 million. Meanwhile, diesel consumption rose only 2 per cent on year from 55.9 million litres a day to 57.1 million. Somnuk Bomrungsalee, the director-general, attributed the slight increase in diesel consumption to an adjustment in the transport sector. Some companies have shifted to the cheaper NGV and LPG, he said. In the period, NGV consumption rose 11 per cent from 7.7 million kilogramme per day to 8.5 million, while LPG consumption rose by 67 per cent from 2.9 million kilogramme to 4.8 million.
 
Energy Absolute to build wind and solar projects in Thailand Wind Tech 16th Dec 2013
Energy Absolute plans to invest Bt25 billion (approximately € 570 million) over the next two years to build two solar-power plants producing 90MW each and three wind-power plants generating a total of 126MW. The company is negotiating with Chinese and European firms on setting up joint ventures to develop alternative-energy programmes. There will be two wind-power plants built in Nakhon Si Thammarat and one in Songkhla. The total investment for these wind farms is Bt9 billion (approximately € 204 million). The investments will be made from the company's cash flow. However, Energy Absolute is looking into ways to raise funds that will not affect its shareholders, including a possible infrastructure fund.
 
DP Cleantech to build coconut-to-energy power plant in Thailand Biomass Magazine 6th Dec 2013
Biomass and waste-to-energy provider DP Cleantech has developed an advanced biomass combustion technology to efficiently convert coconut waste into clean energy. The company recently signed a contract to deliver the new turnkey solution for the Mahachai Green Power project in Samut Sakhon Province, Thailand. The state-of-the-art, high pressure, high temperature The 9.5MWe plant will be delivered on an EPC basis including all electro-mechanical systems, and will run on coconut waste residues such as husk, shell, frond and leaves. The new, advanced design has been adapted especially for coconut waste to ensure minimal fuel consumption, flexibility to mix several kinds of fuels in various sizes, high power yields, and will include high-efficiency flue gas cleaning systems to lower emissions below regulatory standards. DP Cleantech is able to guarantee long-term stable performance, operating at full capacity for more than 7,900 hours per year.
 
Vietnam
US-Vietnam nuclear deal not a reminder of Cold War Global Times 17th Dec 2013
Since the signing of the US-Vietnam Civil Nuclear Cooperation Agreement in October, which commits the US to sell nuclear fuel and technology to Vietnam, an intense debate has arisen over its significance. Supporters of the agreement hail it as a step forward in the process of deepening relations between the US and Vietnam and say it is beneficial for both countries. For Vietnam, it represents the capacity to produce its own nuclear power energy and reduce its dependence on imports to meet the increased energy demand of a growing economy. For the US, the agreement opens up the opportunity for US businesses to make inroads in the second largest nuclear power market in East Asia. Opponents of the treaty criticize it from several angles. Non-proliferation advocates are concerned over the lack of stringent controls and the possibility of Vietnam becoming another nuclear power, which could destabilize the regional situation and undermine US President Barack Obama's vision of a global non-proliferation treaty.
 
Energy Security: Would Vietnam’s Ninh Thuan Nuclearise Southeast Asia? – Analysis Eurasia Review 16th Dec 2013
VIETNAM is scheduled to start building its first nuclear power plant (NPP), the Ninh Thuan 1-1, in 2014 and is set to be the first country in Southeast Asia to operate a nuclear power facility. Indonesia, Thailand, and the Philippines, have laid down some groundwork for the same end for decades, but political, financial, and environmental reasons have thus far impeded the realisation of such vision. Would the imminent construction of Vietnam’s NPP spur its neighbours to follow its footsteps? A little late for the nuclear game Arguably, Southeast Asian countries have found their journey to the ‘nuclear energy club’ way too tardy. The birth of environmentalism in the 1970s, the 1986 Chernobyl disaster, and the 2011 Fukushima accident, pose significant hurdles in acquiring civilian nuclear capability at present.
 
Kerry talks climate dangers in Vietnam Politico 16th Dec 2013
Secretary of State John Kerry, speaking in Vietnam this weekend, said the U.S. and that nation have come a long way since he fought there decades ago — but the biggest threat to the Mekong Delta today is climate change. “Vietnam is one of the most vulnerable countries in the world when it comes to climate change. And we will see very serious impacts if we don’t change course today,” Kerry said. “That’s why all of us need to work together and focus in on these issues.” The U.S. and Vietnam are already working on some initiatives, Kerry noted, including adaptation funding and clean energy development. But Kerry also cautioned against jumping headlong into hydropower and dams that could negatively affect the river's flow.
 
General Electric Signs Deal to Develop Wind Power in Vietnam Vietnam Briefing 13th Dec 2013
General Electric International (GE) and the Electricity Regulatory Authority of Vietnam (ERAV) recently signed a contract to develop a wind grid code to increase renewable power sources in Vietnam. Funded by a technical grant from the U.S. Trade and Development Agency (USTDA), a team from GE will conduct an assessment of the country’s current wind power capabilities and strategies for expansion. The firm looks to integrate up to 6,000 MW of new wind power, according to the USTDA. “We are pleased to support this effort to help develop Vietnam’s abundant wind resources,” said USTDA Director Leocadia I. Zak. “This contract demonstrates the practical benefits of collaboration between US industry and the governments of the US and Vietnam in achieving sustainable energy growth for Vietnam’s expanding economy.” This project will form the basis for future renewable energy projects for US wind manufacturers in Vietnam. It is only one of many efforts in line with the 2012 US-Asia Comprehensive Energy Partnership (USACEP) to support greater US business engagement in the region’s renewable energy sector. Vietnam has high potential for wind power development compared to the rest of Southeast Asia. It has a 3,000 kilometer coastline and an average wind speed of 7 m/s. However, some major obstacles to the industry’s growth arise from bureaucratic hurdles, lack of available data and inadequate transport infrastructure and equipment.
 
Korea to provide $1 mln nuclear equipment to Vietnamese university Tuoi Tre News 12th Dec 2013
A Korean nuclear association will sponsor equipment priced at US$1 million to help train personnel for Vietnam’s nuclear technology and atomic power industry at a university in the Central Highlands, according to an agreement signed Wednesday. The signatories to the document include Da Lat University, the Korea Nuclear Association for International Cooperation (KNA), the Korean Ministry of Trade, Industry and Energy, and Hanyang University. KNA will deliver a system that simulates the operations of a reactor to the university, located in Da Lat City, in January next year. It will continue supplying the school with Korean-technology machinery that imitates the control system of a reactor together with a hydrothermal simulation experiment platform to be used in nuclear reactions, after Da Lat University finishes building nuclear technology labs. The total cost of the equipment amounts to $1 million, Dr Nguyen Duc Hoa, Da Lat University president, said. The university will shift its training from atomic physics to nuclear engineering and nuclear technology applications with this technical support, Dr Hoa added.
 
UK, Vietnam share experiences on atomic energy Global Times 11th Dec 2013
Experts, researchers and lectures from Britain's leading atomic energy institutions are sharing their experiences with Vietnamese scientists in Vietnam's capital Hanoi. During a two-day forum, which opened here on Tuesday, participants will be assessing the reality of current human resource shortfalls in Vietnam and proposing expanding cooperation between the two countries to ensure the manpower for Vietnam's first nuclear power plants. Earlier in November, representatives from Vietnam's Ministry of Science and Technology and the UK Foreign and Commonwealth Office signed a memorandum of understanding on cooperation in using atomic energy for peaceful purposes. Under the agreement, the two sides will join hands in education and training, human resources development, research and development of civil nuclear power plants, and the application of radiation and radioactive isotopes in socio-economic development. They will also strengthen the management of radioactive waste and used materials while cooperating in infrastructure, financial consultation, information and communications, and response to nuclear problems, reported Vietnam News Agency.
 
Government tries to unknot pricing problem in wind power projects Vietnam Net 10th Dec 2013
To Hoai Dan, Chair of Cong Ly Construction, Trade and Tourism Company Ltd, has sighed with relief after a long period of waiting in hope, as the government has approved the new electricity price for the Bac Lieu wind power project developed by Cong Ly. Dan said the government has agreed on the cent9.8 per kwh electricity price Cong Ly plans to sell to the Electricity of Vietnam (EVN), the only wholesale buyer in Vietnam. The level is lower than the cent12 per kwh proposed by the investor, but it is cent2 per kwh higher than the price stipulated before by the government in the Decision No. 37 on the mechanism to support wind power projects. “The approved price level is good enough,” Dan said, adding that if the government insisted on the pricing mechanism stipulated in the Decision No. 37, Cong Ly would surely incur loss for Bac Lieu project. According to Dan, the investment rate for Bac Lieu project is very high. A report of the Ministry of Industry and Trade to the Prime Minister in July showed that Bac Lieu has the total capacity of 99.2 MW and the total investment capital of VND4.893 trillion for two phrases.
 
Asian gasoline margins climb on Vietnam demand Business Recorder 8th Dec 2013
Asia gasoline margins climbed on Friday on spot demand from Vietnam and as Pakistan is likely to have completed a purchase, industry sources said. Vietnam's Petrolimex sought through a tender 5,000 tonnes of 95-octane gasoline for late December to early January delivery, which helped to lift sentiment, though the small parcel size will unlikely have a big impact in the market, a Singapore-based trader said. Gasoline margins could also be boosted in the first quarter of next year when Malaysia's Petronas shuts crude distillation units at its Malacca and Kerteh refineries for about a month each, industry sources said. The shutdown could boost imports of gasoline into the country, the sources added. Demand for open-spec naphtha continued to be strong from Northeast Asia, traders said. "There are still end-users short of cargoes for second-half January and hence the demand is strong," one of them said.
 
Vietnam Faces Growing Threat of Power Blackouts: Southeast Asia Bloomberg 5th Dec 2013
Vietnam’s success in attracting investment, generating growth and adding jobs is under threat from looming shortages of what keeps modern economies running: electricity. The risk of shortages took a turn for the worse last week when state-owned Vietnam Oil & Gas Group said talks with Chevron Corp. (CVX) to develop a natural gas field had failed due to price disputes, which will delay supply of the fuel to electricity generators. Consultant IHS Energy said last month that demand in the country may exceed gas supply by 2015. “The main problem is that Vietnam has a cumbersome consensus-based decision-making system that slows down the whole process of getting new power projects up and running,” said Graham Tyler, the Singapore-based manager of Southeast Asian gas and power at energy consultant Wood Mackenzie.
 
Vietnam to keep LPG import taxes unchanged despite price surge Platts McGraw-Hill Financial 5th Dec 2013
Vietnam's Ministry of Finance will not revise LPG import tax rates despite a 19% surge in domestic retail prices Monday due to an almost 30% month-on-month surge in global market prices, the ministry's Price Management Department Director Nguyen Anh Tuan said late Tuesday. Tuan was speaking after the country's Ministry of Industry and Trade Monday endorsed a call by the Vietnam Gas Association to abolish the LPG import tax, currently set at 5%, to help stabilize the domestic market amid the recent jump in international prices. "If global and domestic [LPG] prices continue to rise, the Ministry of Finance will propose the central government implement suitable tools to stabilize the market in accordance with its current price regulations," Tuan said, without providing details of the proposed changes.
 
Fuel dealers asked to hold prices steady Vietnam News 6th Dec 2013?Fuel wholesalers were told to keep fuel retail prices stable whilst urging them to dip into the nation's price stabilisation fund for petrol to offset losses. The joint decision of the ministries of Finance and Industry and Trade took effect yesterday, coming after increases in global fuel prices during the last month. According to a Ministry of Finance report, while the base price of RON 92 gasoline was currently VND24,097 per litre, the retail price was only VND23,630. Similarly, each litter of diesel oil 0.05S, kerosene and fuel oil is being sold for VND22,310, VND22,020 and VND18,510, compared with their base prices of VND22,936, VND22,988 and VND18,496, respectively. In a bid to stabilise the economy and curb inflation, the ministries have decided to keep fuel prices and import tariffs constant.