Energy Update: December 11, 2019

Energy Update | December 11, 2019
Authors: Riley Smith and Jacob Corfman
 
 
THE COUNCIL'S TAKE
 
 

Jokowi Overhauls Pertamina Management, Sets Ambitious Production Goals in Attempt to Reduce Energy Imports

Seeking to help reduce Indonesia’s current account deficit by cutting back on crude oil imports, President Joko “Jokowi” Widodo is overhauling the management of Pertamina, the state-owned oil company, and has set ambitious domestic exploration and production targets over the next decade. Given that the monthly energy import bill eclipses that of all other imports combined, Jokowi sees it as a fundamental drag on the Indonesian economy and a trend that is preventing it from reaching his target 7 percent annual growth.

On November 22, Jokowi appointed former Governor of Jakarta – and Jokowi’s previous Deputy Governor of Jakarta – Basuki Tjahaja Purnama, often referred to as Ahok, as the new president commissioner of Pertamina. The appointment came just shy of a year since Ahok was released from prison after being convicted in 2017 of committing blasphemy during a contentious reelection campaign. The appointment of Ahok, a close ally of Jokowi, is seen as a way to ensure that Pertamina can achieve its ambitious targets while reportedly improving oversight of the state-owned company.

In addition to Ahok’s appointment, President Jokowi has pushed SKK Migas, Indonesia’s Upstream Oil and Gas Regulatory Task Force, to increase oil and gas production targets from the current target of 750,000 barrels per day (bbl/d) to 1 million bbl/d by 2030. Part of this target is to come from 42 new oil and gas projects that will collectively require US$43.3 billion in total investment. Jokowi is also aiming to double domestic refining capacity to 2 million bbl/d by 2026 by opening six refineries, at a cost of around US$60 billion, as well as increasing the amount of locally-produced biofuel in diesel from 20 percent to 30 percent. Please see our forthcoming Energy Analytical Update for more information on this topic.

Indonesia Considers Allowing Energy Companies to Choose Either Gross Split PSC or Cost Recovery Scheme

The Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, who was appointed in October, recently announced that the Ministry is considering whether to allow contractors to operate under the gross split production sharing contract (PSC) introduced in 2017 or the prior cost-recovery scheme. Under the gross split scheme, contractors are allowed to retain a larger portion of the oil and gas that they recover in exchange for bearing the exploration and production costs. As the name implies, the cost recovery scheme would see the government reimburse the contractors for these costs. The base share for oil and gas under the gross split scheme is the government’s 52 percent to the contractor’s 48 percent for gas and 57 percent to 43 percent for oil. Under the cost recovery scheme, the percentages were much more heavily weighted toward the Indonesian government – 70 percent and 85 percent for gas and oil, respectively.

In certain corners of the Indonesian government, the transition to the gross split PSC has been an unambiguous win. According to Ministry of Energy and Natural Resources data, 45 oil and gas blocks have used gross split PSCs since they were introduced a couple of years ago, and investment in Indonesia’s upstream oil and gas sector has gone up slightly from US$10.1 billion in 2017 to US$11.9 in 2018. However, contractors have expressed some hesitancy regarding the gross split scheme given that projects in the exploration phase are not yet generating revenue, meaning additional perks to the gross split PSCs, such as the ability to carry over tax losses, do yet benefit the project’s balance sheet. (You can read more about this issue in the essay “Advancing Gas Market Reforms in the Indo-Pacific: Key Issues for Southeast Asia” in the National Bureau of Asian Research’s Revolutionizing LNG and Natural Gas in the Indo-Pacific report here.) Indonesia decided to move away from the cost recovery scheme after contractors asked the government to reimburse them for more than US$11 billion, even though only US$8.4 billion had been set aside for cost recovery reimbursements.

By considering allowing companies to undertake projects using the cost recovery scheme once again, the Indonesian government is hoping is to incentivize companies to increase their domestic exploration and production of natural gas and oil. As mentioned in the previous Council’s Take, one of Indonesian President Joko “Jokowi” Widodo’s main goals during his second term in office is to reduce the current account deficit by reducing energy imports. To achieve this goal, Jokowi is pressing Indonesia’s Upstream Oil and Gas Regulatory Task Force, SKK Migas, to increase its domestic oil and gas production targets from the current 750,000 barrels per day (bbl/d) to 1 million bbl/d by 2030, partly through the development of 42 new oil and gas projects that will collectively require US$43.3 billion in total investment.

Experts Offer Recommendations on Smart Grid Development in Vietnam

On November 21 in Hanoi, the Electricity Regulatory Authority of Vietnam (ERAV) and the Ministry of Industry and Trade (MOIT) held a workshop with local electricity officials, energy companies, and international energy experts to discuss how to devise a suitable legal framework to develop smart grids in Vietnam. Germany’s development agency, Deutsche Gesellschaft fur Internationale Zusammenarbiet (GIZ), also helped to organize the workshop.

A number of the main recommendations to come out of the workshop have to do with how the Vietnamese government can address gaps in regulations dealing with the integration of renewable energy (RE) sources into the grid. While the government has issued policies with clear mechanisms on how to encourage RE development, for example, through the use of a feed-in tariff (FiT) coupled with long-term Power Purchase Agreements (PPAs) and RE-related subsidies, the policies need further refinement to make RE development in Vietnam financially attractive. Under current PPAs, Vietnam Electricity is the sole buyer of electricity from RE sources, though a pilot project is underway that allows power plants to sell RE-generated electricity directly to large power consumers. In addition to the restrictions on who can buy RE-generated electricity, the international consultants attending the workshop indicated that Vietnam’s FiT pricing mechanism does not reflect the market price and is therefore not attractive enough to pique interest among investors.  To address these issues, the workshop participants recommended that Vietnam improve the attractiveness of its financial mechanisms to encourage investment in RE sources, that it issue clear and specific regulations on grid congestion and the installation of an energy storage system, and that it increase the grids flexibility and reliability by allowing auxiliary services providers.

 
ADVOCACY UPDATE
 
 

Energy Roundtable Features Briefing on Japan-U.S. Cooperation on Developing Southeast Asia’s Energy Sector

On December 5, the Energy Committee held its most recent roundtable in its Energy Roundtable Series with Mr. Aaron Ringel, Senior Advisor at the State Department's Bureau of Energy Resources. Mr. Ringel briefed member companies on the role that the Japan-U.S. Strategic Energy Partnership (JUSEP) is playing in energy market and infrastructure development in Southeast Asia. JUSEP has been promoting universal access to affordable and reliable energy in the Indo-Pacific region and sub-Saharan Africa since it was first announced in November 2017. More recently, the partnership has focused on supporting the U.S. Government's (USG) Asia Enhancing Development and Growth Through Energy (EDGE) initiative. It was through JUSEP in 2018 that Japan pledged US$10 billion in public and private finance and capacity building training towards the Asia EDGE initiative. In September 2019 Japan announced that it intends to increase its support by another US$10 billion. Also, in August 2019, the U.S. and Japan announced the Japan-U.S. Mekong Power Partnership (JUMPP), which aims to promote economic growth and enhanced electricity interconnections among the Mekong countries through free, open, stable and rules-based regional electricity markets. As a follow-up to the roundtable, the Energy Committee is asking member companies to send in their preferences for countries the USG should prioritize under Asia EDGE and, if possible, projects that they would like to see prioritized. Please send your preferences and project ideas to Riley Smith at rsmith@usasean.org.

The Energy Roundtable Series is an initiative by the Energy Committee at the US-ASEAN Business Council to keep member companies well-informed of prevailing and shifting trends in Southeast Asia's vital energy sector. The December 5 roundtable was the last for 2019, but the Energy Committee is already planning for the first roundtable in January or February 2020, which will likely feature a briefing from Japan's Ministry of Economy, Trade and Industry (METI).

 
IN THIS UPDATE
 
 
ASEAN
Malaysia, Singapore square off for LNG bunkering hub supremacy
Kingdom to import 200MW from Lao hydropower plant
Malaysia's Petronas wins bid to supply LNG to Thailand's EGAT
Overreliance On Hydropower Is Causing A Crisis In Southeast Asia

Brunei
Petroleum Brunei sells Jan-loading Kimanis crude at premiums
World’s first global hydrogen supply project begins shipment from Brunei to Japan
Wintermar signs Brunei Energy Industry Integrity Pact

Cambodia
In Cambodia, solar power surges
Kingdom lays out the welcome mat for renewable energy investment
Germany to provide $70M to broaden road, electricity networks
Cambodia plans to spend over US$100mil on subsidies by 2021
Cambodia struggles to keep the lights on
Australia’s ATEC raises $1.6 million to sell biodigesters in Cambodia, Bangladesh
US companies urged to invest in Cambodia

Indonesia
The Rantau Dedap geothermal power plant to provide clean energy to Sumatra, Indonesia
Indonesia moves to slash energy imports
Indonesia aims to start making green diesel in 2022
Indonesia's biodiesel consumption seen rising to 10.1 mln KL in 2022
Indonesia considers allowing for production sharing oil and gas contracts options
115 MW of geothermal capacity under development on Flores Island, Indonesia
Indonesia ‘must stop building new coal plants by 2020’ to meet climate goals
Indonesia Reviewing Rules Mandating Coal Sales to Local Buyers-Official
Indonesia overhauls state energy giant to reduce oil imports
Former Jakarta governor makes comeback in prominent Pertamina role
Indonesia targets starting up EV battery plants in 2023
Indonesia to further edge up bio-content proportion for bio-diesel

Malaysia
Aramco IPO: It's a thanks, but no thanks from Malaysia's Petronas
BCPG eyes Malaysia, Taiwan
Petronas sees commercial production this year at southern Malaysia refinery
Sarawak sues Petronas over state sales tax
Petronas strengthens presence in India
Petrofac announces £93m new deals in North Sea and Malaysia, buys Texas energy services firm - News for the Oil and Gas Sector
TNB in P2P energy trade?
Sarawak-Sabah gas pipeline undergoing safety checks

Myanmar
Electricity Reform to Light Up Myanmar’s Economy
Three new substations boost national grid
Electricity rate hike is good for economy
Wärtsilä awarded 40MW equipment supply contract for power plant in Myanmar
Hitachi SEM to provide Myanmar with 5,600 transformers
Solar could lower power costs for local business, IFC study reveals
Everyone can now sell electricity - what does this mean for us?
Norwegian ambassador meets Myanmar's Minister for Electricity and Energy
Ayala Corp to invest $238m in companies controlled by Myanmar tycoon
Govt to launch second stage of electrification plan
Hong Kong to invest 500 million dollars in two LNG power stations
Country’s largest mini-grid unveiled in Magway
Four hydropower projects to continue implementation in 2019-2020 FY
Solar power plant opens in Lema, Magway
E& E Ministry receives DCS computerized control systems, instruments
Govt Promises to Meet Myanmar’s Rising Electricity Demand
Deal signed to purchase power from Kyaukphyu power plant project

Philippines
Big energy firms driving coal expansion in the Philippines
Philippines DOE considering stable pricing system for renewable energy
How the Philippines can lead in floating solar technology in Asia
Philippines' PXP eyes Malampaya facilities for South China Sea gas project
Malaysian firm eyes waste-to-energy PHL projects
China can shut off the Philippines' power grid at any time, leaked report warns
China can turn off the Philippine national power grid, officials say
PSALM to study privatization options for hydro plants
Oil companies set to hike prices this week
DOE partners with Japan for clean energy initiative suitable for ASEAN
China could 'turn off power' in the Philippines
Udenna buying Chevron’s stake in Malampaya
Continued dev’t of Malampaya backed .

Singapore
UOB offering financing plans for Singapore firms, home owners switching to solar power
Billionaires invest in giant Australian solar farm to supply power to Singapore
Wärtsilä and PSA Marine collaborate to achieve clean energy shipping
New framework aims to boost Singapore's competitiveness in energy and chemicals manufacturing
Singapore to take its climate change fight to next level
Total opens Asia Pacific HQ in Singapore to drive regional growth in fossil fuels, renewable businesses

Thailand
Successful Finnish smart energy, circular economy Thailand delegation
Report: Thailand could benefit from ethanol imports
Thailand to push blockchain use
Mitsui invests in gas-fired power plant in Thailand
ADB, Gulf PD Sign Deal to Build 2,500 MW Power Plant in Thailand
Thailand state utility EGAT announces zero-emissions excellence centre
New Billion-Dollar Family Emerges From Thailand Power Industry
Blockchain in the works for oil exports
Asian Development Bank to support construction of power plant in Thailand
A win-win for nature and the economy
Egat readying country's first FSRU
Thailand promotes use of biofuel to support agriculture

Vietnam
Vietnam signs crude oil supply deal for 2020 with SOCAR
Vietnam to import LNG to meet burgeoning electricity demand | Hellenic Shipping News Worldwide
Siemens to upgrade steam power plant in Vietnam to combined cycle power plant
Vietnam's coal, crude oil imports surge on rising energy demand
GS Energy to build LNG plant in Vietnam
Gia Lai to develop first wind power plant
Construction on Quảng Tri 1 thermal power plant kicks off
Việt Nam to create mechanisms to attract smart grid investment
Renewable energy projects in Ninh Thuận face overloaded electricity grid
 
ARTICLE CLIPS
 
 
ASEAN

Malaysia, Singapore square off for LNG bunkering hub supremacy Riviera Maritime Media 3rd Dec 2019
As the clock winds down towards the 1 January 2020 implementation of IMO’s 0.50% sulphur cap, Singapore and Malaysia are jockeying to be southeast Asia’s regional LNG bunkering hub. Both countries are anticipating a major uptake in LNG as a marine fuel as more ship operators shift towards alternative fuels to comply with the stricter emissions regulations.

Kingdom to import 200MW from Lao hydropower plant Phnom Penh Post 3rd Dec 2019
Cambodia plans to import 200MW of electricity from Laos’ Don Sahong hydropower plant early next year to curb power shortages this coming dry season, with the transmission line network scheduled for completion later this year, Ministry of Mines and Energy spokesman Victor Jona said.

Malaysia's Petronas wins bid to supply LNG to Thailand's EGAT AF 3rd Dec 2019
Petronas LNG Ltd., a subsidiary of Malaysia’s state oil and gas company Petronas won a bid to supply 130,000 tonnes of liquefied natural gas (LNG) to Thailand’s state-owned Electricity Generating Authority of Thailand.

Overreliance On Hydropower Is Causing A Crisis In Southeast Asia Yahoo Finance 27th Nov 2019
The swirling currents of the once mighty Mekong shrunk by drought and increasingly crippled by dams point towards an unprecedented crisis of water governance along the more than 4,900 kilometers of southeast Asia’s longest river.

Brunei

Petroleum Brunei sells Jan-loading Kimanis crude at premiums Reuters 3rd Dec 2019
Petroleum Brunei sold two cargoes of January-loading Kimanis crude, Malaysia’s key export grade, at a premium of around 70 cents a barrel to its official selling price (OSP), three trade sources said on Wednesday

World’s first global hydrogen supply project begins shipment from Brunei to Japan Biz Brunei 2nd Dec 2019
The world’s first global hydrogen supply demo project has made its first shipment from Brunei and is expected to arrive in Japan on December 15. Japan’s Advanced Hydrogen Energy Chain Association for Technology Development’s (AHEAD) – who have built hydrogenation and dehydrogenation plants in the Sg Liang Industrial Park and Kawasaki respectively – will export 210 tonnes of hydrogen to Japan over 12 months, which will be primarily used as fuel for the gas turbine power generators of Toa Oil Company.

Wintermar signs Brunei Energy Industry Integrity Pact Oil & Gas 360 28th Nov 2019
Wintermar signs the Brunei Energy Industry Integrity Pact, committing to collaborate with the Brunei Government to promote high industry standards of ethics and transparency. Wintermar was recognized by the Brunei Energy Industry Integrity Working Group in a ceremony on 26 November 2019 in Brunei. With this milestone, Wintermar joins a select group of oil and gas industry players in Brunei who have been audited and approved for this achievement.

Cambodia

In Cambodia, solar power surges China Dialogue 3rd Dec 2019
One hour west of Cambodia’s capital an array of iridescent panels stretches between palm trees, glistening through dust clouds from a neighbouring highway. A year ago it was a barren expanse of chalky soil. Now it’s Cambodia’s largest solar farm. The joint Cambodian-Chinese project, which came online in August, is only Cambodia’s second utility-scale solar project. But the government has approved more than four major solar farms to be built across the country.

Kingdom lays out the welcome mat for renewable energy investment Phnom Penh Post 3rd Dec 2019
The government welcomes investment from Germany in the Kingdom’s solar and renewable energy sector as local demand for electricity continues to rise between 15 to 20 per cent annually, Ministry of Mines and Energy official Victor Jona said on Tuesday in Phnom Penh.

Germany to provide $70M to broaden road, electricity networks Phnom Penh Post 3rd Dec 2019
Minister of Economy and Finance Aun Pornmoniroth and Federal Republic of Germany ambassador to Cambodia Christian Berger reached two agreements on Thursday to provide the Kingdom with more than $70 million in development financing.

Cambodia plans to spend over US$100mil on subsidies by 2021 NST Online 2nd Dec 2019
Cambodia plans to spend more than US$100 million (RM417 million) on subsidies by 2021 to reduce electricity tariffs and spur economic growth. The move is also to relieve the financial burden of businesses and households. Cambodian utility company Electricite du Cambodge (EdC) director general Keo Ratanak told The Phnom Penh Post that the government had already spent some US$95 million (RM396 million) to reduce tariffs this year.

Cambodia struggles to keep the lights on Asia Times 2nd Dec 2019
Cambodia is racing to prevent a new spate of power outages, similar to the unexpected rolling blackouts suffered earlier this year that caused untold damage to the economy. Prime Minister Hun Sen warned in November that water levels at the country’s hydropower dams are running exceptionally low, driving down power plant production to about one-tenth of their normal output.

Australia’s ATEC raises $1.6 million to sell biodigesters in Cambodia, Bangladesh ImpactAlpha 2nd Dec 2019
Solar startups pioneered the pay-as-you-go model to introduce low-income, off-grid customers to electricity. Australia’s ATEC is applying the financing model to biodigestion to enable Asia’s smallholder farmers to manage farm waste and simultaneously tap a new energy source: biogas.

US companies urged to invest in Cambodia Khmer Times 24th Nov 2019
Cambodia last week asked the United States to increase investments in the Kingdom, claiming that working conditions here have improved dramatically in recent years. The appeal was made by Commerce Minister Pan Sorasak in a meeting on Friday with US Ambassador Patrick Murphy.

Indonesia

The Rantau Dedap geothermal power plant to provide clean energy to Sumatra, Indonesia Think GeoEnergy 3rd Dec 2019
When the project that is to be starting operation in 2020 will go online it will provide “lasting social dividends, as well as 90 MW of carbon-free electricity.”, so the company. The plant will be providing much needed stable power supply into the grid of South Sumatra. Below the take of the company on the project and its impact.

Indonesia moves to slash energy imports Petroleum Economist 3rd Dec 2019
Indonesia’s government has overhauled the Pertamina leadership and set ambitious new exploration targets to further reduce the country’s dependence on oil and gas imports, which despite volume falling by nearly 20pc year-on-year, according to Statistics Indonesia (BPS), are still a drag on economic growth.

Indonesia aims to start making green diesel in 2022 Reuters 3rd Dec 2019
Indonesia plans to start producing green diesel from palm oil in 2022, with output estimated at 3.7 million kiloliters, a senior official in the Energy and Mineral Resources Ministry said on Tuesday. Indonesia, the world’s largest palm oil producer, wants to develop green diesel, a second generation biodiesel. It currently uses biodiesel made from fatty acid methyl ester (FAME) from palm oil, which is blended with fossil fuel.

Indonesia's biodiesel consumption seen rising to 10.1 mln KL in 2022 Reuters 3rd Dec 2019
Indonesia’s consumption of fatty acid methyl ester (FAME) fuel made from palm oil is expected to rise to 9.8 million kilo litres in 2021 and to 10.1 million in 2022, Energy and Mineral Resources Ministry data presented at parliament on Tuesday showed

Indonesia considers allowing for production sharing oil and gas contracts options Reuters 3rd Dec 2019
Indonesia is considering letting energy companies stick with the “cost recovery” system for oil and gas production sharing contracts, the energy minister said on Monday, after the government decided to adopt a new scheme in 2017.

115 MW of geothermal capacity under development on Flores Island, Indonesia Think GeoEnergy 3rd Dec 2019
State utility PT PLN supports development on Flores Island, East Nusa Tenggara (NTT), Indonesia, by adding electricity capacity in the region. PLN also ‘challenged’ investors to invest in the island. The state-owned electricity company even affirms that it is ready to meet the electricity needs of business people who will expand in Flores and its surroundings.

Indonesia ‘must stop building new coal plants by 2020’ to meet climate goals Mongabay Environmental News 2nd Dec 2019
Indonesia must stop building new coal-fired power plants by 2020 if it wants to do its part to cap global warming under the targets of the Paris climate agreement, new analysis shows. The country is one of the few still actively planning and constructing new plants, putting it on a trajectory to miss its climate commitments, aimed at limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial levels and achieving net-zero greenhouse gas emissions by 2050.

Indonesia Reviewing Rules Mandating Coal Sales to Local Buyers-Official The New York Times 2nd Dec 2019
Indonesia is reviewing rules that require coal miners to sell a portion of their coal to local buyers, a government official said on Monday, as suppliers struggle to meet the regulation. Coal miners are currently required to sell 25% of their output to the local market, mainly state-owned electric company PT Perusahaan Listrik Negara (PLN), a policy known as the domestic market obligation (DMO). However, since PLN's demand is limited while output is climbing, the miners are unable to maintain the ratio of exports to domestic sales.

Indonesia overhauls state energy giant to reduce oil imports Free Malaysia Today 23rd Nov 2019
Indonesian President Joko Widodo ordered an overhaul of the management of state-owned oil giant , as the former OPEC member seeks to reduce crude oil imports to rein in the current-account deficit. Former Jakarta Governor Basuki Tjahaja Purnama, who served a two-year prison term on blasphemy charges, will become president commissioner of Pertamina, while Emma Sri Martini, chief executive officer of state-owned PT Telekomunikasi Selular, will be chief financial officer, according to State-Owned Enterprises Minister Erick Thohir.

Former Jakarta governor makes comeback in prominent Pertamina role Nikkei Asian Review 22nd Nov 2019
Basuki Tjahaja Purnama, the former governor of Jakarta who was jailed for blasphemy, looks set to take on the role of president commissioner at Indonesian state-owned oil company Pertamina, following an announcement on Friday by the minister of state-owned enterprise, Erick Thohir. Whether the former governor, popularly known as Ahok, actually takes up the role will depend on the approval of Indonesian President Joko Widodo and will be decided after a forthcoming meeting of ministries which hold shares in Pertamina. The company is 100% owned by the state. President commissioner is the head of the board of commissioners, which supervises and advises the board of directors. The appointment marks a huge turnaround for the former Widodo protege -- he was Widodo's deputy governor for two years, then replaced him as governor when Widodo became president in 2014 -- who suffered a huge fall from grace in 2017. Purnama will be expected to stamp out corruption at the wealthy and powerful company that was once considered "a state within a state," which previously held the right to grant oil and gas concessions to other companies. Indonesia's largest company, long seen as a cash cow for the government, especially during the 1967-1998 era of strongman leader Suharto, has often been criticized as an oversized and ineffective bureaucracy. It needs reforms now more than ever as Indonesia's oil and gas sector is faced with a crisis over depleting oil reserves, while in the short term the Widodo administration wants to curb costly fuel imports to quell Indonesia's persistent trade and current account deficits against the backdrop of the U.S.-China trade war. The state-run company relies on crude and petroleum products from abroad.

Indonesia targets starting up EV battery plants in 2023 Reuters 10th Dec 2019
Indonesia is aiming to start making lithium batteries for use in electric vehicles in 2023, alongside plants that are already slated to produce chemicals used in the batteries, according to the minister who oversees the energy and mining ministry.

Indonesia to further edge up bio-content proportion for bio-diesel Xinhua 10th Dec 2019
Indonesia, the world's largest palm oil producer, will drift up further the percentage of bio-content used in bio-diesel, starting in 2021 as a move to ratchet down oil imports and increase palm oil consumption. Indonesia's Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan said on Tuesday that the government is planning to apply a bio-diesel program with 40 percent of bio-content (B40) from 2021 to 2022.

Malaysia

Aramco IPO: It's a thanks, but no thanks from Malaysia's Petronas Reuters 3rd Dec 2019
With Saudi Aramco yet to name any major foreign investors in its upcoming share sale, Malaysia’s state energy company Petronas [PETR.UL] decided to take a pass on Friday. Expectations that Aramco customers and allies around the world would take significant stakes in the company have so far not materialized, with the listing looking like it will be reliant on local retail and institutional investors.

BCPG eyes Malaysia, Taiwan Bangkok Post 22nd Nov 2019
SET-listed BCPG Plc plans to develop power generation from solar panels in Malaysia and Taiwan in the near future. Governments of both countries are allowing private power companies to develop renewable power projects, said Charnvit Trangadisaikul, executive vice-president for corporate business development.

Petronas sees commercial production this year at southern Malaysia refinery The Business Times 22nd Nov 2019
State oil company Petronas said its massive refinery and petrochemicals complex in southern Malaysia, a US$27-billion joint venture with Saudi Aramco, will start commercial operations as planned by the end of the year, dismissing a report of a delay. The refinery's atmospheric residue desulphurisation (ARDS) unit, hit by a fire in April, will begin operation by mid-2020, Petronas said in an email late on Wednesday.

Sarawak sues Petronas over state sales tax NST Online 21st Nov 2019
A writ of summons and statement of claim were filed today by the Sarawak Comptroller of the State Sales Tax and the state government against Petronas at the High Court registry here. Sarawak Assistant Minister in the Chief Minister’s Department (Law, State-Federal Relations and Project Monitoring) Datuk Sharifah Hasidah Sayeed Aman Ghazali said the legal action was taken to recover the state sales tax owed by the national oil and gas company to the state. “As have been mentioned several times before this, Petronas have not paid the State Sales Tax for petroleum products under the State Sales Tax Ordinance 1998 which is due to the state. “As a result, the state government is left with no choice but to commence legal action for the recovery of the unpaid taxes due,” she said in a statement today. The statement, however, did not mention the amount the state is seeking from Petronas. The five per cent state sales tax was imposed on Jan 1 this year and Petronas is said to be the only oil and gas company operating in the state which has not paid the sales tax.

Petronas strengthens presence in India NST Online 21st Nov 2019
Petroliam Nasional Bhd (Petronas) is strengthening its business footprint in India as the national oil company foresee higher demands for energy, power and consumer goods by 2030. "Petronas is on-track to build an effective business ecosystem in India to better serve our customers and stakeholders in this important market,” said Petronas Energy (India) Private Ltd chairman Rizan Ismail in a statement today, adding that Petronas has more that 20 years of strategic partnerships covering six business segments in India.

Petrofac announces £93m new deals in North Sea and Malaysia, buys Texas energy services firm - News for the Oil and Gas Sector Energy Voice 20th Nov 2019
Petrofac has announced new contracts and extensions in the North Sea and Malaysia worth £93m, as well as an acquisition marking its entry to the US onshore services market. The energy services company said it has secured the contracts for engineering and production services (EPS) as it targets growth for the division.

TNB in P2P energy trade? NST Online 18th Nov 2019
Tenaga Nasional Bhd is tipped to be behind the force that may disrupt the country’s energy sector and break the traditional trend of power business. It is learnt that the national utility company is advocating a transition move from a traditional marketplace where power systems are commonly supplied by large fossil-fuel generation plants... This is in line with the market liberalization in Malaysia, with the government pushing for with its 10-year master plan called Malaysia Electricity Supply Industry 2.0.

Sarawak-Sabah gas pipeline undergoing safety checks The Star Online 17th Nov 2019
Safety checks are being carried out on the entire Sarawak-Sabah giant gas pipeline, which will trigger loud sounds that could be mistaken for explosions. The safety checks at the interstate pipeline route, which spans 600km, are being carried out by national oil company Petronas.

Myanmar

Electricity Reform to Light Up Myanmar’s Economy Mizzima Myanmar News and Insight 3rd Dec 2019
Businesses and the general public in Myanmar are divided on the recent bold policy move to hike electricity tariffs. But the big question is: how can the electricity reform contribute to the country’s development? On one hand, the business community seems to be accepting of higher tariff rates as that could lead to a more stable power supply with less power outages. This in turn could bring down maintenance and other production costs with lower use of other costly sources of energy such as diesel-powered generators during power outages. On the other hand, many households may find the tariff increases too steep given the country’s low per capita income. The higher power tariffs mean that consumers will not only have to pay more for their personal electricity consumption at home, but also for other goods and services that require electricity as inputs.

Three new substations boost national grid The Myanmar Times 2nd Dec 2019
U Win Khaing was speaking during the official opening of the Tatkyigon substation in Hmawby Township, Kyuntawkon substation in Okekan Township, and the Aphyauk substation in Aphyauk Township. The three new substations are located in Yangon Region. He said at the event that the priority of the current government has been to develop infrastructure, especially electricity and transportation. “The government’s reformation of the Ministry of Electricity and Energy to fulfill the power needs of the country has proven successful, as the national grid now provides 50 percent of the country’s electricity, compared with just 34 pc in 2016,” U Win Khaing said.

Electricity rate hike is good for economy The Myanmar Times 29th Nov 2019
Businesses and the general public in Myanmar are divided on the recent bold policy move to hike electricity tariffs. But the big question is: how can the electricity reform contribute to the country’s development? On one hand, the business community seems to be accepting of higher tariff rates as that could lead to a more stable power supply with less power outages. This in turn could bring down maintenance and other production costs with lower use of other costly sources of energy such as diesel-powered generators during power outages.

Wärtsilä awarded 40MW equipment supply contract for power plant in Myanmar Energy Live News 25th Nov 2019
The MCM Power facility aims to help meet the nation’s increasing energy demand by feeding baseload power into the national grid and alleviate its ongoing energy shortage. The plant will operate on four natural gas engines and is expected to become operational in April 2020 – its output is planned to be doubled to 80MW at a future date.

Hitachi SEM to provide Myanmar with 5,600 transformers Power Transformer News 20th Nov 2019
Hitachi Soe Electric & Machinery Co., Ltd. (Hitachi SEM) has received orders for the delivery of approximately 5,600 distribution transformers from the Myanmar Ministry of Electricity and Energy. Hitachi SEM is a subsidiary of Hitachi Industrial Equipment Systems Co., Ltd. in the Republic of the Union of Myanmar (Myanmar). The total amount of the orders is equivalent to approximately $10.64 million.Hitachi SEM will start production of the distribution transformers within this year and is planning to deliver all units by the end of 2020, contributing to the improvement of the electrification rate in Myanmar.

Solar could lower power costs for local business, IFC study reveals The Myanmar Times 18th Nov 2019
The study estimates that there are more than 700 megawatts worth of potential commercial and industrial solar projects in Myanmar, which is equivalent to around 10 percent of the country’s existing power generating capacity.

Everyone can now sell electricity - what does this mean for us? GovInsider 18th Nov 2019
In rural Myanmar, microgrids are providing villages disconnected from the main grid with electricity. Yoma Micro Power is building solar-powered microgrids backed up by diesel generators and batteries. It plans to build 2000 of these by the end of 2022, its CEO Alakesh Chetia told GovInsider. They are quicker to build than waiting for the government to expand the national grid infrastructure, he says. “From the time you order materials and they arrive in Myanmar, through to commissioning the power plant, you’re looking at for four to five months,” he says of microgrids.

Norwegian ambassador meets Myanmar's Minister for Electricity and Energy ScandAsia 15th Nov 2019
Union Minister for Electricity and Energy U Win Khaing received Norwegian Ambassador to Myanmar H.E. Tone Tinnes at his office in Nay Pyi Taw on 14th November 2019.

Ayala Corp to invest $238m in companies controlled by Myanmar tycoon Financial Times 13th Nov 2019
Two of south-east Asia’s leading business families are joining forces, with one of the Philippines’ biggest conglomerates investing more than $200m in two companies controlled by Myanmar-born tycoon Serge Pun.

Govt to launch second stage of electrification plan The Myanmar Times 12th Nov 2019
The government will light another 4000 villages across the country in the second phase of its electrification plan, said U Thura Aung Ko, chief engineer and project manager of the Ministry of Electricity and Energy. He added the agency has begun inviting tenders to supply equipment for the project. “We are not yet inviting construction tenders,” U Thura Aung Ko said, adding the second phase is expected to be completed in September 2021. 

Hong Kong to invest 500 million dollars in two LNG power stations Eleven Media Group Co., Ltd 5th Dec 2019
Hong Kong based CNTIC VPower YGI Limited is planning to invest over US$500 million to build a 400-megawatt LNG fired power station in Thaketa Township and a 150-megawatt LNG fired power station in Kyaukphyu Township to generate and distribute electricity, according to the Myanmar Investment Commission (MIC). The company will spend over US$363 million to build the 400-megawatt LNG fired power station in Thaketa Township, Yangon Region and over US$140 million to build the 150-megawatt LNG fired power station in Kyaukphyu Township, Rakhine State. A total of 50 countries invested US$82 billion total till at the end of 2018-19 FY with Hong Kong coming in 11th place on the foreign investors list with US$8.6 billion.

Country’s largest mini-grid unveiled in Magway The Myanmar Times 5th Dec 2019
With the mini-grid, up to 400 households in Magway’s Lel Ma village now have access to electricity. Myanmar’s electrification rate is one of the lowest in the world at around 50 percent. Kapil Seth, chief executive officer of Mandalay Yoma Energy, hailed the investment as a landmark in electricity access for remote areas of the country. “We see tremendous potential as we strive to deliver sustainable energy access to more homes and enhance the quality of our services for end customers,” Seth said in a press statement. Mandalay Yoma Energy is a solar energy joint venture between French ENGIE Group’s GDF International SAS and Singapore-based consuntancy Sol Partners Pvt Led.

Four hydropower projects to continue implementation in 2019-2020 FY Eleven Media Group Co., Ltd 4th Dec 2019
The four hydropower projects—671-megawatt (MW) Shweli (3) hydropower project, 280-megawatt (MW) Upper Yehwa hydropower project, 111-megawatt (MW) Thahtay hydropower project and 51-megawatt (MW) Upper Kyaingtaung hydropower project—will continue implementations during 2019-2020 fiscal years, said a source from the Ministry of Electricity and Energy.

Solar power plant opens in Lema, Magway Eleven Media Group Co., Ltd 4th Dec 2019
A solar mini-grid power plant was opened in Lema Village, Hsinpaungwe Township, Magway Region, on December 3.  The construction of the power station cost US$7.8 million. The solar mini-grids power plant was built by the Rural Development Department and Mandalay Yoma Company in order to electrify over 400 houses in Lema Village.  For the power supply project, local people had to share 2 percent. Electricity from the station will be distributed free of charge to religious buildings, the rural clinic and roads in the village. For home use, K400 will be charged per unit. 

E& E Ministry receives DCS computerized control systems, instruments Global New Light Of Myanmar 26th Nov 2019
The Ministry of Electricity and Energy has received the Distributed Control System (DCS) Plant Model and its components and equipment from the Yokogawa Electric Corporation in Japan, which is a partner of local-private company SMART Measurement and Control Co. Ltd, a joint venture company with the ministry.

Govt Promises to Meet Myanmar’s Rising Electricity Demand The Irrawaddy 16th Nov 2019
The Ministry of Electricity and Energy is hoping to expand electricity access to half of the population by December, according to Deputy Minister U Khin Maung Win. Of 10,877,832 households in Myanmar, 5,140,061 – or 47 per cent of the population – had access to electricity by October. The deputy minister told the Upper House on Thursday that the ministry was looking to boost that to 50 per cent by next month. Myanmar saw record high temperatures during the recent hot season, resulting in frequent power outages as hydropower failed to meet demand. Power outages have hit factories and transport and pushed up the cost of basic commodities, parliamentarian U Tun Tun Oo said.

Deal signed to purchase power from Kyaukphyu power plant project The Myanmar Times 12th Nov 2019
The Ministry of Electricity and Energy (MOEE) has signed an agreement to purchase electricity generated by the 135 MW gas-fired Kyaukphyu Power Plant that will be built by independent power producer Kyauk Phyu Electric Power Co. According to a statement from the MOEE, the power purchase agreement (PPA) was signed last Tuesday. Kyauk Phyu Electric Power Co is a joint venture between Myanmar’s Supreme Group and Chinese state-owned firm Power China.

Philippines

Big energy firms driving coal expansion in the Philippines Eco-Business 3rd Dec 2019
Coal expansion by the Philippines’ biggest energy companies could lead to the fossil fuel’s share of the energy mix growing from 52 per cent today to a whopping 75 per cent by 2025. Using government data, environmental advocacy group Greenpeace identified how four of the country’s biggest conglomerates are set to substantially increase their coal portfolios. Should all their proposed coal projects in the next two to six years be pushed through, the Philippines’ coal capacity will more than double, Greenpeace said in its new report, Dirty Business. By 2030, coal supply would be more than twice its 2015 level.

Philippines DOE considering stable pricing system for renewable energy Think GeoEnergy 3rd Dec 2019
The Philippines Department of Energy is pushing for a specific pricing system for renewable energy. With that the DOE is aiming to boost interest into investments in the sector in the country. With the Green Energy Pricing Program (Gepp), the government aims to establish “stable pricing” to encourage investment, so Energy Undersecretary Felix William Fuentebella to Sun Star in the Philippines. 

How the Philippines can lead in floating solar technology in Asia Eco-Business 3rd Dec 2019
An array of solar panels floats on the waters of San Antonio in San Pedro, one of the cities surrounding Laguna de Bay, the Philippines’ largest freshwater lake 55 kilometres south of Metro Manila, on the northern island of Luzon. Installed in March by renewable energy firms SunAsia Energy and Ciel et Terre, the 13 kilowatt structure is a year-long experiment to see if the photovoltaic (PV) panels can withstand the strong waves and gusty winds at the lake.

Philippines' PXP eyes Malampaya facilities for South China Sea gas project Reuters 3rd Dec 2019
PXP Energy Corp said on Tuesday it has submitted an unsolicited proposal to the Philippines’ Department of Energy to develop and utilize the Malampaya natural gas facilities in the South China Sea for a planned integrated gas hub venture. The Malampaya gas-to-power project, developed and operated by Shell Philippines Exploration BV on behalf of joint venture partners Chevron Malampaya LLC and state-owned PNOC Exploration Corp, began commercial operations in 2001.

Malaysian firm eyes waste-to-energy PHL projects Business World 3rd Dec 2019
A Malaysian company has pledged to invest up to $2 billion to put up 12 waste-to-energy (WTE) facilities in the Philippines in partnership with Filipino company Integrated Green Technology, Inc. (IGT) and a French technology provider. Michael C. Jimenez, chief executive officer and president of IGT, identified the Malaysian firm as PhilSar Renewable Energy Sdn Bhd. and the French group as CNIM Martin Pte Ltd. (CMPL), his partner in at least three WTE projects in the Philippines that have forged contracts with local government units in Pangasinan and Cebu.

China can shut off the Philippines' power grid at any time, leaked report warns CNN 26th Nov 2019
The Philippines' power grid is under the full control of the Chinese government and could be shut off in time of conflict, according to an internal report prepared for lawmakers seen by CNN. China's State Grid Corporation has a 40% stake in the National Grid Corporation of the Philippines (NGCP), a private consortium that has operated the country's power lines since 2009. Concerns over potential Chinese interference in the Philippine energy system have dogged the arrangement since it was first agreed a decade ago.

China can turn off the Philippine national power grid, officials say South China Morning Post 20th Nov 2019
Philippine senators have called for an investigation into the security implications of China’s part ownership of the national energy grid after officials said engineers in Beijing could plunge the entire country into darkness with the flick of a switch. National Transmission Corporation (TransCo) president Melvin Matibag confirmed there was a “possibility” of such a scenario during deliberations in the Senate on Tuesday over the government budget for 2020. The State Grid Corporation of China holds a 40 per cent stake in the National Grid Corporation of the Philippines (NGCP), a private consortium which bagged the franchise in 2009 to run the power lines. TransCo previously ran the system and now has oversight over NGCP, but Matibag told senators that in reality, its “access was limited”. Opposition Liberal Party senator Risa Hontiveros first raised questions over the extent of Beijing’s control given the continuing territorial conflict between the two countries in the South China Sea. Power to the grid could only be restored by the Philippine side through manual override within “24 to 48 hours depending on the gravity” of the situation, energy officials said. Recent media reports have claimed only foreign engineers are able to troubleshoot, operate and control the NGCP’s power transmission network due to its remote monitoring and control system, which is located in China under the Nari Group, based in Nanjing. Nari Group’s system also supplies remote control systems to power grids in Kenya, Indonesia and Thailand, she said, countries which “may be sources of assurance for us or important cautionary lessons”.

PSALM to study privatization options for hydro plants philstar.com 9th Dec 2019
State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is targeting to complete the study on the privatization options for the hydropower plants under Independent Power Producer (IPP) contracts next year. PSALM president and CEO Irene Joy Besido-Garcia said the agency aims to be able to decide on the privatization structure of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant (HEPP) and the Casecnan HEPP next year.  “We’re going to start studying the two because as you know, the power plants, they have different structures. It’s important to structure it well, whatever is the current scenario,” she said.

Oil companies set to hike prices this week philstar.com 1st Dec 2019
MANILA, Philippines — Oil companies are expected to raise pump prices this week after successive weeks of price rollbacks. Meanwhile, prices of cooking gas will also have another round of increase in December amid higher international contract prices. In its forecast, Unioil said motorists should expect fuel prices to go up this week. “Diesel should go up by P0.55 – P0.65. Gasoline should go up by P0.25 – P0.35,” it said. This would follow six straight weeks of reduction on diesel prices.

DOE partners with Japan for clean energy initiative suitable for ASEAN Manila Bulletin Business 30th Nov 2019
The Department of Energy (DOE) has partnered with Japan’s Ministry of Economy, Trade and Industry (METI) and the Mitsubishi Research Institute, Inc. in tackling clean energy initiatives that are seen applicable to the needs of the Southeast Asian bloc. Through the government-private sector tandem on Cleaner Energy Future Initiative for ASEAN (CEFIA), the two governments set the goal on firming up closer collaboration “to help accelerate the development and utilization of cleaner energy and low carbon technologies within the ASEAN region.” Inaugural discussions on such initiatives had been concluded in Manila just recently, with the Philippine DOE taking the lead.

China could 'turn off power' in the Philippines BBC News 21st Nov 2019
China could switch off the Philippines' national grid, congress has heard in Manila. The head of the National Transmission Corporation confirmed the possibility during a senate session. China has part-owned the Philippines' national grid since 2009 - leading one senator to question whether China's "hegemonic ambitions" posed a security threat to the Philippines. The countries have a territory dispute in the South China Sea. "We have given our grid - although 40% it appears - to a foreign corporation that has interests that collide with our country in the West Philippine Sea," said Senator Richard Gordon, using the Philippine name for the eastern parts of the South China Sea. "And that [country] obviously has a hegemonic ambition." The senate heard that - although the power could be switched off remotely - the Philippines could restore it within 24 to 48 hours.

Udenna buying Chevron’s stake in Malampaya Business Mirror 14th Nov 2019
A UNIT of Udenna Corp. has signed a sale and purchase agreement to acquire the 45% stake of Chevron Malampaya LLC in the deepwater gas-to-power project located offshore of northwest Palawan, Udenna Chairman and Chief Executive Officer Dennis A. Uy said in a statement on Wednesday. “The acquisition of Chevron’s interest in the Malampaya gas field marks an important milestone for Udenna, fitting strategically with our long-term ambitions of developing a sustainable clean energy business in the Philippines,” Udenna Chairman and Chief Executive Officer Dennis A. Uy said in a statement on Wednesday. The sale and purchase agreement was signed on Oct. 25 between the unit of Chevron Philippines, Ltd. and Udenna unit UC Malampaya Philippines Pte. Ltd. for the latter to acquire the full stake of the Malampaya project consortium partner.

Continued dev’t of Malampaya backed . Malaya 13th Nov 2019
A private company has offered to support the continued development of the Malampaya resources well after the current service contract of the gas find expires in 2024. Pangilinan-led oil and gas exploration firm PXP Energy Corp. has submitted an unsolicited proposal to the Department of Energy (DOE) for the strategic development and utilization of an integrated gas hub in the Malampaya project upon the expiry of its service contract (SC) in 2024. In a disclosure to the Philippine Stock Exchange, the company said it eyes the operations of the facility as it is strategically positioned in the West Philippine Sea where other prospects such as the Sampaguita Field and the entire SC 72 operated by PXP are also located. The Sampaguita prospect’s development was temporarily stopped in 2014 when the government suspended drilling activities in the Reed Bank amid a territorial dispute with China.

Singapore

UOB offering financing plans for Singapore firms, home owners switching to solar power The Straits Times 26th Nov 2019
UOB has partnered home-grown solar companies SolarGy, SolarPVExchange and Sunseap Group for the Singapore portion of its regional U-Solar programme, which connects Asian businesses and individuals with the lender's solar company partners to help clients go green by switching to solar power. Under the collaboration, businesses and home owners will be able to adopt solar energy by choosing from the installation, commissioning, operations and after-sales service packages for solar power systems provided by the three solar firms.

Billionaires invest in giant Australian solar farm to supply power to Singapore The Guardian 20th Nov 2019
The mining magnate and philanthropist Andrew “Twiggy” Forrest has joined fellow billionaire Mike Cannon-Brookes in raising tens of millions of dollars to build a giant solar farm in the Northern Territory to supply electricity to Singapore.

Wärtsilä and PSA Marine collaborate to achieve clean energy shipping World Oil 15th Nov 2019
The technology group Wärtsilä and Singapore-based PSA Marine have agreed to collaborate in the co-creation of smart technologies for the marine sector. The focus will be on solutions that are human-centric and deployable. The Letter of Intent was signed on November 14 as part of the events celebrating the anniversary of the opening of the Wärtsilä Acceleration Centre in Singapore.

New framework aims to boost Singapore's competitiveness in energy and chemicals manufacturing The Straits Times 13th Nov 2019
Companies in the process construction and maintenance industry that provide services to energy and chemicals plants will soon be able to attain recognition if they meet certain productivity benchmarks. A new certification framework will evaluate companies in four areas: how they improve planning and execution through using project management tools; technology adoption; staff development; and how well they collect data that can be analysed.

Singapore to take its climate change fight to next level The Straits Times 11th Dec 2019
Singapore has indicated that it will do more to cut down its greenhouse gas emissions. The Republic will update its climate pledge to guide its policies over the longer term, said Minister for the Environment and Water Resources Masagos Zulkifli. Already, Singapore has committed to ramping up its use of solar energy and greening its land transport sector, with the aim of having nine in 10 peak-period journeys by 2040 made via walking, cycling or rides on public and shared transport. It also wants to make electric vehicles more viable here. Mr Masagos reiterated this commitment about five years after the Republic made its first climate pledge - which outlined its plans to limit its planet-warming greenhouse gas emissions by 2030 - under the historic Paris Agreement.

Total opens Asia Pacific HQ in Singapore to drive regional growth in fossil fuels, renewable businesses The Straits Times 9th Dec 2019
French energy giant Total S.A. reaffirmed its commitment to Singapore as a strategic hub by opening its regional headquarters in Frasers Tower in Cecil Street to manage its businesses across Asia Pacific. Starting its operations in 1982 with oil trading and lubricant products sales, the international oil and gas company has steadily expanded its presence in the Republic retailing petrochemicals, marketing petroleum products and related services. Total's lubricants blending plant at Singapore Lube Park in Tuas is its largest and most modern in the world. Mr Teo recounted Total's recent ventures in the country that include the company's partnership with Singapore's Pavilion Energy to build up the liquefied natural gas (LNG) bunkering eco-system, and with the Adani Group to supply and market LNG in India. Total is the second-largest private global LNG player, with a global market share of 10 percent.

Thailand

Successful Finnish smart energy, circular economy Thailand delegation ScandAsia 3rd Dec 2019
A Team Finland business delegation, led by Ms. Nina Vaskunlahti, Deputy Minister, Under-Secretary of State for External Economic Relations,visited Thailand on 30 September to 1 October (followed by Myanmar). Following on the Team Finland export promotion trip to Thailand in 2018, the main purpose this time was to promote cooperation in the fields of smart energy and circular economy. Many companies with strong connections to Thailand or with vast Asian experience were included.

Report: Thailand could benefit from ethanol imports Ethanol Producer Magazine 3rd Dec 2019
A recently released report from the U.S. Department of Agriculture’s Foreign Agricultural Service says that while Thailand has relied on domestic ethanol production, the country could benefit from importing ethanol and other biofuels.

Thailand to push blockchain use OpenGov Asia 3rd Dec 2019
In Thailand, blockchain is being tested as a way to trade solar energy by the state-owned renewable energy firm BCPG.

Mitsui invests in gas-fired power plant in Thailand LNG Industry 19th Nov 2019
Mitsui & Co. has announced that it has given the go-ahead for a major new US$1.6 billion project to build a gas-fired combined cycle power plant in Rayong Province, Thailand.

ADB, Gulf PD Sign Deal to Build 2,500 MW Power Plant in Thailand Modern Diplomacy 18th Nov 2019
The Asian Development Bank (ADB) and Gulf PD Company Limited (Gulf PD) today signed a $180 million agreement to build and operate a 2,500-megawatt (MW) combined cycle gas turbine power plant in the Rojana Rayong 2 Industrial Park of Thailand’s Rayong Province, about 150 kilometers southeast of Bangkok.

Thailand state utility EGAT announces zero-emissions excellence centre Smart Energy International 18th Nov 2019
The Electricity Generating Authority of Thailand (EGAT) has partnered with INNIO to implement a micogrid pilot project. The pilot will be conducted at the utility’s zero-emissions energy excellence centre in Bang Krul Nonthaburi in Thailand. The centre is expected to be completed by the end of 2020.

New Billion-Dollar Family Emerges From Thailand Power Industry Bloomberg 12th Nov 2019
Thailand’s renewable power industry has created a billionaire family. Biomass power specialist Absolute Clean Energy Pcl listed in Bangkok on Wednesday, an initial public offering that reveals the founding Songmetta family as among the wealthiest in the Asian nation.

Blockchain in the works for oil exports Bangkok Post 2nd Dec 2019
The Excise Department will devise a method to refund overpaid taxes to oil exporters in a manner that stems leakages, its chief says. The change in the tax refund practice will use blockchain, which the department plans to adopt by the middle of next year, said director-general Patchara Anuntasilpa. The blockchain-based tax payback system requires oil exporters to pay excise tax to the department and claim overpaid taxes after they ship the fuel, he said. The new technology will let the department inspect the tax payments thoroughly.

Asian Development Bank to support construction of power plant in Thailand Power Technology 19th Nov 2019
SHARE The Asian Development Bank (ADB) has signed a $180m agreement with Gulf PD to develop and operate a 2,500MW power plant in Thailand. The combined cycle gas turbine power plant will be located nearly 150km south-east of Bangkok in the Rojana Rayong 2 Industrial Park. Owned by Independent Power Development, Gulf PD was established in 2012 to construct and operate the plant. Independent Power Development is a joint venture (JV) company of Gulf Energy Development (GED) and Japanese trading company Mitsui. ADB Deputy Private Sector Operations director general Christopher Thieme and the GED CEO Sarath Ratanavadi signed the Eastern Economic Corridor Independent Power Project agreement in Bangkok.

A win-win for nature and the economy Bangkok Post 14th Nov 2019
The Nobel Prize in Chemistry this year went to three visionary scientists for "creating a rechargeable world". Their works can help recharge the Thai economy too if the government does the right thing to support the lithium-ion industry. Before we discuss policies, let's remember that every time we recharge our mobile phones and laptops, we owe it all to these three great minds: John B Goodenough, M Stanley Whittingham, and Akira Yoshino. The fruits of their revolutionary inventions do not stop at our wireless world. At a time when Mother Earth is facing the climate crisis, the development of lithium-ion batteries has paved the way to a fossil-fuel-free world to save humanity. "This lightweight, rechargeable and powerful battery is now used in everything from mobile phones to laptops and electric vehicles. It can also store significant amounts of energy from solar and wind power, making possible a fossil fuel-free society," lauds the Royal Swedish Academy of Sciences to honour them with the Nobel Prize.

Egat readying country's first FSRU Bangkok Post 14th Nov 2019
The state-run Electricity Generating Authority of Thailand (Egat) is preparing to develop the country's first floating storage regasification unit (FSRU) worth 24.5 billion baht to support its business plan to import liquefied natural gas (LNG) from 2020. The National Energy Policy Council approved Egat developing this massive investment project in 2017. Egat aims to be an LNG shipper for power generation as the government plans to liberalise the business. PTT Plc has been the sole LNG shipper for more than 30 years.

Thailand promotes use of biofuel to support agriculture VietnamPlus 12th Nov 2019
The Energy Ministry of Thailand has set a time frame to transition to gasohol E20 as the primary petrol grade by early next year to boost the value of commodity crops used in biofuel production. Speaking to the press, Thai Energy Minister Sontirat Sontijirawong said the country will use agricultural commodities like palm oil, sugar and cassava to produce biofuel. Gasohol is a biofuel made from cassava and sugar blended with unleaded petrol in proportions of 10 percent, 20 percent or 85 percent. It was introduced to Thai motorists for commercial sale in 2008, followed by E20 and E85 a few years later. Thailand has five categories of petrol: gasohol 91 E10, gasohol 95 E10, gasohol E20, gasohol E85 and premium ULG 95 petrol. The government aims to cut down to just three or four types of petrol.

Vietnam

Vietnam signs crude oil supply deal for 2020 with SOCAR Reuters 3rd Dec 2019
Vietnam’s state-run Binh Son Refining and Petrochemical Co (BSR) has inked an agreement with Azeri state energy company SOCAR to buy five million barrels of crude in 2020, BSR said late on Friday. SOCAR Trading will provide five million barrels of Azeri Light crude to BSR’s Dung Quat refinery during the first half of 2020, BSR said in a statement on its web site.

Vietnam to import LNG to meet burgeoning electricity demand | Hellenic Shipping News Worldwide Hellenic Shipping News 3rd Dec 2019
Demand for liquefied natural gas (LNG) will continue to be strong, outpacing domestic production by 2020 requiring the country to import around one million cubic metres a year, according to the Ministry of Industry and Trade.

Siemens to upgrade steam power plant in Vietnam to combined cycle power plant POWER Magazine 3rd Dec 2019
Siemens will provide the equipment to upgrade the Hiep Phuoc 1 steam power plant in Ho Chi Minh City, Vietnam, to a combined cycle power plant. This project will increase the plant’s electrical capacity by roughly 780 megawatts (MW) to approximately 1,200 MW. The modernized plant will be fired with regasified liquefied natural gas (LNG) instead of the oil that has been used to date. By changing the fuel, deploying modern F-class gas turbines from Siemens, and using the waste heat from the gas turbines to produce electricity, the CO2 emissions can be cut almost in half for each kilowatt hour produced on-site. With this project, the customer Hiep Phuoc Power Co. Ltd., will ensure a reliable, secure, and environmentally friendly power supply for Ho Chi Minh City and Vietnam.

Vietnam's coal, crude oil imports surge on rising energy demand Reuters 3rd Dec 2019
Vietnam’s coal and crude oil imports surged in the first ten months of this year, government data released on Tuesday showed, highlighting the Southeast Asian country’s increasing reliance on imported energy to support its fast-growing economy.

GS Energy to build LNG plant in Vietnam The Investor 3rd Dec 2019
GS Energy, a unit of energy and retail conglomerate GS Group, said Nov. 28 it has partnered with a Vietnamese asset management firm to build a power plant fired by liquefied natural gas there to tap into the local electricity market.

Gia Lai to develop first wind power plant vietnamnews.vn 2nd Dec 2019
Việt Nam-based HBRE Wind Power and Thailand's Super Energy Corporation recently kicked off a wind power project worth VNĐ1.8 trillion (US$ 77.7 million) in the Central Highlands province of Gia Lai. Hồ Tá Tín, chairman of HBRE Group, said phase 1 of the HBRE Chư Prông Wind Power Farm Project would have a capacity of 50MW within 12 months and would contribute 110KV to the Diên Hồng- Chư Sê power grid. Phase 2 of the project with a capacity of a further 50MW is expected to be completed before November 2021.

Construction on Quảng Tri 1 thermal power plant kicks off vietnamnews.vn 2nd Dec 2019
A ground-breaking ceremony has been held to kiick off the construction of the 1,320-megawatt Quảng Trị 1 thermal power plant. The project, located in the central province of Quảng Trị, is undertaken by Thailand’s EGAT International Company Limited under a build-operate-transfer contract. The coal-fired plant using supercritical technology will have two turbines, with a capacity of 660 megawatts each. It is expected to generate 7,200 billion kWh of electricity and pre-tax revenue of VNĐ12.5 trillion (over $538 million) per year.

Việt Nam to create mechanisms to attract smart grid investment vietnamnews.vn 26th Nov 2019
Local electricity officials, related firms and international experts discussed a suitable legal framework to develop a smart grid and electricity system in Việt Nam in Hà Nội on November 21. The workshop, held by the Electricity Regulatory Authority of Việt Nam (ERAV), Ministry of Industry and Trade, in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH aimed to collect ideas on the development of intelligent power grids in Việt Nam. GIZ’s Project Director Tobias Cossen said: “Việt Nam’s electricity system is facing technical and financial challenges, as we have seen the country’s rapid development of renewable energy sources in the past year and its ambitious plan until 2030, especially the power sources using wind and solar energy which rely on weather conditions.”

Renewable energy projects in Ninh Thuận face overloaded electricity grid vietnamnews.vn 26th Nov 2019
The central province of Ninh Thuận has seen a boom in renewable energy projects, especially solar power, but power transmission lines in the province have failed to handle the capacity, experts have said. A number of solar and wind projects in the province have been developed after preferential incentives on prices for renewable power were issued, according to the Ministry of Industry and Trade. Many renewable energy projects, however, cannot operate at full capacity. Lưu Xuân Vĩnh, chairman of the province’s People’s Committee, said the Government and the ministry had approved 30 solar power projects in the province with total capacity of more than 1,817MW and total registered capital of over VNĐ50 trillion (US$2.13 billion).