Top Story of the Week: Southeast Asia Next Energy Growth Market
LOOKING AHEAD
- USABC Business Mission to Indonesia - November 11-13, 2013
- USABC Business Mission to Malaysia – November 20-22, 2013
ASEAN the Next Energy Emerging Market
Multiple reports recently released expect Southeast Asia to be the next emerging market for energy, on par with the like of China and India. With a population of over 600 million, the region is poised to attract the attention of global energy exporters in the United States and Middle East, according to Fatih Birol, chief economist for the International Energy Agency. Given Singapore’s strategic location on one of the world’s most important sea routes, the country launched an LNG terminal this past March. ASEAN states are not only increasing energy demand but diversifying energy sources to clean energies. A World Bank report, ‘Unlocking Commercial Financing for Clean Energy in East Asia,’ encouraged governments to take action to attract clean energy investment. The Report emphasizes low-carbon growth not only has positive externalities for the environment, but also contributes to improving economies through job creation and energy security. In a speech at the annual Singapore International Energy Week, the International Energy Agency encouraged Asian states to remove fossil fuel subsidies in order to create a competitive market environment for clean energy to develop.
Myanmar Set to Draft National Energy Policy
According to the Global Times, the Myanmar government is drafting a national energy policy intended to meet international standards. The drafting process will include input from development partner organizations and experts. Vice President U Nyan Tun emphasized to the National Energy Management Committee that socio-economic development not only relies upon the development of energy infrastructure and investment, but effective energy policy that does not limit investment in the renewable energy sector. The World Bank and the Asian Development Bank have provided loan packages for Myanmar’s energy infrastructure, aimed at rural areas not yet accessible to power grids. According to The Irrawaddy, next month the Yangon City Electricity Board intends to increase consumer rates by as much as 100%, hindering both household and business consumers. Kyaw Soe Tun, secretary of Hlaing Tharyar 5 Industrial Zone Management Committee, is particularly worried about disappearing profits for businesses that rely on twenty four hour electricity for cold storage and production. As Myanmar continues to liberalize its economy, reliable power generation and increasing prices remain challenges to household budgets and businesses seeking to enter the country.
IN THIS UPDATE:
ASEAN
Energy, Southeast Asia Next Growth Market Heffx 28 Oct 2013
Southeast Asia may be the next growth market for energy comparable to China and India, industry players said at an energy industry forum Monday. Fatih Birol, chief economist of the inter-governmental International Energy Agency, said that people may be talking about Southeast Asia as the next emerging market for energy, just as people have been talking about China and India. The 10-member Association of Southeast Asian Nations (ASEAN) has a combined population of about 600-M. Put together, the three markets are really gradually “shifting the center of gravity of the global energy market” towards Asia, he said at the Singapore International Energy Week. Indeed the region is also on the radar of global energy exporters like Qatargas and potential exporters like the United States. Sheikh Khalid Bin Khalifa Al-Thani, chief executive officer of Qatargas, the world’s largest producer and exporter of Nat Gas, mentioned the region in addition to traditional importers of energy like Japan and China. The company delivered its first ever LNG (liquefied natural gas) cargo to Singapore in March this year. Singapore, sitting on the world’s most important sea route for the transport of energy resources, launched its LNG terminal in March this year with an initial throughput capacity of 3.5 million tons per annum (mtpa). It is expected to increase to 6 mtpa at the end of this year with the completion of a 3rd tank. A 4th tank has been planned to further expand the terminal, which will boost its capacity to 9 mtpa by Y 2016, said S Iswaran, minister in the Prime Minister’s Office and 2nd minister for home affairs and 2nd minister for trade and industry.
Southeast Asia must remove $51 billion of fossil fuel subsidies that distort energy markets: IEA chief Eco Business 30 Oct 2013
The International Energy Agency chief economist Fatih Birol says governments are starting to phase these out, but there must be a sense of urgency to remove these distortions to foster more competitive, efficient energy markets. For clean energy to have a fighting chance of success to grow in Asia, governments must remove fossil fuel subsidies that distort the Asian energy market, said the International Energy Agency (IEA) chief economist Dr Fatih Birol on Tuesday. Addressing delegates at the annual Singapore International Energy Week at Marina Bay Sands, Dr Birol said the share of renewables in the Asian energy market cannot grow with governments continuing to subsidise fossil fuel production and consumption. Many Asian countries such as Malaysia, Indonesia and Thailand are rich in renewable energy resources such as solar, geothermal, biomass and hydro. But the industry remains underdeveloped as these Asian governments spend billions on subsidising fossil fuel consumption instead. Moves to remove these subsidies are highly sensitive and political, and are often met with ire from local communities that have gotten used to cheap energy. “The argument for subsidies is completely wrong… countries like Malaysia, Indonesia and Thailand need to eliminate these subsidies.. in order to foster more competition and efficiency in the energy markets,” he said.
World Bank urges immediate action to unlock commercial financing for clean energy Jakarta Post 31 Oct 2013
A low-carbon growth path is in the best interest of each country in East Asia, and governments should take action now to create an enabling environment to attract clean energy investments, coupled with public financing mechanisms to provide incentives to investors and unlock commercial financing, says a new World Bank report. The report titled Unlocking Commercial Financing for Clean Energy in East Asia said a low-carbon growth path was not only good for the climate, but also brought about domestic benefits in each country related to energy savings, improved local environments, enhanced energy security and more jobs. In addition, as the lion’s share of financing is expected to come from the private sector, governments need to put in place policies conducive to private investment and use public funds to incentivize private investors in order to unlock commercial financing for clean energy. Delayed action will only increase the costs and difficulties of stabilizing the climate. “Effective policies are the essential driver to catalyzing commercial investment in clean energy,” John Roome World Bank director for Sustainable Development in the East Asia & Pacific Region, said in an official release.
Energy spending to soar, predicts ADB study Mizzima 3 Nov 2013
Future demand for electricity in the Asia-Pacific region will be so big that countries such as Myanmar, Cambodia and even more developed Thailand will need to swap supplies to keep the lights on and machinery operating, a study reckons. National power grids are less than adequate in many countries of the region and cross-border transmission lines are still very much in their infancy, so how realistic is the study’s forecast, and can Myanmar benefit? The fact is that an electricity swapping trend has already begun – but will need to get much bigger, warns the Asian Development Bank (ADB). Bangladesh is about to start receiving electricity from India; Thailand has links with Malaysia, which has links with Singapore; Indonesia is building a cross-border cable link with Malaysia’s Borneo states Sarawak and Sabah; and Vietnam draws electricity from China. According to the ADB study, economic and industrial growth means the Asia-Pacific region will have to more than double its overall electricity generating capacity between now and 2035. It estimates that by the middle 2030s the region will be consuming over 16,000 terawatt hours per year. The biggest growth in demand will come from India and China, which together will account for 70 percent of total consumption in that period, said the study’s author.
Brunei
Brunei Darussalam sharpens focus on renewable energy Oxford Business Group 3 Nov 2013
While abroad Brunei Darussalam might be best known for its substantial hydrocarbons reserves, at home authorities are turning their attention to more “green” forms of energy, including solar. However, compared to some of its South-east Asian neighbours, the Sultanate has set more modest goals and has been slower to develop alternatives to oil and gas. Selling power to the national grid In September, the minister of energy, Pehin Dato Yasmin Umar, announced a plan to introduce a feed-in tariff scheme to promote the use of solar power, which will allow individuals and businesses to sell the electricity they generate back to the national energy firm. Speaking at the opening of a workshop on policies, feed-in tariff frameworks and best practices for grid-connected solar photovoltaic projects on September 9, the minister said such a system would help reduce consumers’ power bills, encourage the use of renewable energy and promote a wider acceptance of efficient energy use. Later, on the sidelines of the conference, the minister said that while many things needed to be done before the scheme could be implemented over the next 18 month to two years, the programme had much to offer both consumers and the national economy. The government flagged the possibility of developing a feed-in tariff system at the beginning of the year, with officials suggesting Brunei Darussalam could adopt the scheme as a means to improve energy efficiency. However, it was not until the September workshop that a proposal was fleshed out and a time frame presented.
Cambodia
Singapore signs energy-related MOUs with Cambodia, UAE Channel News Asia 28 Oct 2013
Singapore signed two energy-related Memorandums of Understanding (MOUs) with Cambodia and the United Arab Emirates (UAE), at the Singapore Energy Summit on Monday. This is part of its efforts to strengthen partnerships in the energy sector. Second Minister for Trade and Industry, Mr S Iswaran, signed the agreement with Cambodia's Minister of Industry, Mines and Energy, Dr Cham Prasidh. 60 Cambodian energy officials will be trained in electrical safety regulations in the first project under the Singapore-Cambodia MOU. For the UAE, the agreement was signed with their Minister of Energy, Mr Suhail bin Mohamed Faraj Fares Al Mazrouei. Both MOUs will facilitate the sharing of information in areas like energy efficiency, and will foster collaboration among market players to explore opportunities in the energy sector.
Indonesia
Indonesia, Finland to renew biomass pact Antara News 25 Oct 2013
Indonesia and Finland have agreed to continue their collaboration on developing biomass as an alternative source of energy, in particular, as a source of electric power. "Indonesia and Finland agreed to cooperate on biomass development for the period 2011-2014," said Indonesian Minister of Energy and Mineral Resources Minister Jero Wacik after receiving Finnish Economic Affairs Minister Jan Vapaavuori here on Friday. The governments of both the countries have also agreed to renew the cooperation contract for the period 2014-2017, Jero added. Under the collaboration, Indonesia will receive technical assistance funding worth three million Euros for the period 2011-2014, Jero noted. "They (Finland) aggressively pushed for an investment opportunity and providing biomass technology assistance," Jero noted.
Indonesia Planning New Refinery to Reduce Fuel Imports Jakarta Globe 31 Oct 2013
Indonesia is looking to build a new 300,000-barrels-per-day (bpd) state-owned refinery to reduce its dependence on imported fuels, a government official said on Thursday. Indonesia now has about 1 million bpd of refining capacity that meets about two-thirds of its demand, meaning it has to import more than 500,000 bpd of fuel products to fill the gap. The government is conducting a feasibility study it hopes to complete by next year on the new refinery, said Yusef Kartiwa Caryana, deputy director of the oil and gas storage and business development division at Indonesia’s energy and mineral resources ministry. The refinery, to be government-funded and operated by Pertamina, would likely be located in East Java or Sumatra and might come online by 2021, he said during the Singapore International Energy Week. Indonesia would likely source crude from Iraq, with whom it already has an oil supply agreement, Caryana said.
Pertamina’s Big Plans to Rival Singapore’s Temasek Jakarta Globe 1 Nov 2013
Indonesia’s state energy company Pertamina said on Thursday that its ambitious plan to become an energy giant is far greater than seeking an acquisition target and that it seeks to emulate Temasek Holdings of Singapore as a symbol of Indonesian influence in the global community. “Pertamina is proposing the establishment of a state holding enterprise in the energy sector,” said Ali Mundakir, Pertamina’s vice president for corporate communication in a statement. “The proposal strengthens the country’s energy security as well as the strength of the country in the energy sector,” he added. “The holding company will symbolize the strength of Indonesia in the same way Temasek Holding projects Singapore’s strength to the international community. This proposal is not just about a single share acquisition,” said Ali. However, Ali added that not all parties understand the grand idea behind Pertamina’s proposal. “Not everyone is on board yet so it is going to be very difficult to turn the idea into reality even though it will generate positive benefits for the country over the long term.”
Indonesia plans to build new 300,000bpd refinery Energy Business Review 1 Nov 2013
Indonesia is planning to build a new state-owned refinery to reduce its dependence on imported fuels. The government-funded refinery, which is expected to produce around 300,000 barrels per day, will be operated by Pertamina. The new refinery, which is expected to come online by 2021, is likely to be situated in East Java or Sumatra, reports Reuters. Oil and gas storage and business development division deputy director at Indonesia's energy and mineral resources ministry Yusef Kartiwa Caryana said the country is conducting a feasibility study on the new refinery and is expected to be completed in 2014. The country is planning to source crude from Iraq, which currently has an oil supply agreement, according to Caryana. Indonesia currently has around 1 million bpd of refining capacity that meets about two-thirds of its demand.
Editorial: Indonesia Needs to Pursue Geothermal Jakarta Globe 5 Nov 2013
As Indonesia struggles to develop a comprehensive and sustainable energy policy, it might take a look at its northern neighbor for some guidance and success stories. The Philippines has many similar characteristics to Indonesia — it has thousands of islands, a high poverty rate, a booming economy, and a shortage of electricity. Indonesia can no longer rely on fossil fuels alone to generate power for its economy and its people. Geothermal energy has long been touted as a possible alternative. After all Indonesia has the highest reserves of geothermal energy in the world, but only taps 1.4 percent of this energy. The Philippines, on the other hand, gets 14 percent of its energy needs from geothermal sources, making it the second-largest geothermal producer in the world, behind only the United States. Both countries, however, face similar challenges — conflicting regulations, opposition from conservation gro u ps, and resistance from indigenous peoples. But the Philippines has overcome these challenges through painstaking work and persuasion.
Malaysia
Exciting future for Malaysia oil and gas industry Business Times 23 Oct 2013
The future looks stimulating for the local oil and gas industry, with billions of ringgit of investments going into risk service contracts (RSCs), more discovery of deep water reserves, plus tens of billions of ringgit in upstream capital expenditure (capex). The potential in technologically demanding areas such as enhanced oil recovery, asset integrity, integrated operations and deep water exploration is expected to provide opportunities for local players to develop indigenous technology. Moving forward, Subramanya said Malaysia has the potential to become the regional hub for oil and gas in this region, especially in the deep water and services segment. "Malaysia's deep water reserves potential is estimated to be 10 billion barrels of oil equivalent (bboe). Of this, only three bboe have been discovered so far. So, this leaves another seven bboe yet to be discovered," he said.
Sustainable energy agency Seda mulls wind as renewable resource The Star 28 Oct 2013
The Sustainable Energy Development Authority Malaysia (Seda) is considering the inclusion of wind as another renewable resource in the renewable energy (RE) scheme. CEO Datin Badriyah Abdul Malek said Seda has embarked on a project to produce a national wind map, due next year. She said part of Seda’s mission was to increase the renewable energy sources in the Feed-in-Tariff (FiT) portfolio. “The wind map study which started at the end of last year will take about 24 months to be completed. “We are expecting a comprehensive wind map for Malaysia to be ready by end 2014,” she told StarBiz. Badriyah said Seda was not the financial sponsor of the study. “The study is a joint effort by Seda and Universiti Malaysia Terengganu (UMT).
Asia-Pacific region yields gas for Petronas UPI 31 Oct 2013
Malaysian energy company Petronas said Thursday it made new discoveries of natural gas in Malaysia, Indonesia and Australia. Petronas said it confirmed a natural gas discovery off the coast of Sarawak, a state on the island of Borneo. While working with its Malaysian affiliate, Mubadala Petroleum, the company said it encountered a gas column measuring 810 feet while drilling in shallow waters. The U.S. Energy Information Administration says Malaysia holds the third-largest deposits of natural gas in the region. More than half of its estimated 83 trillion cubic feet of proven natural gas reserves are off Sarawak Through its work with PetroChina, the company said it made a "significant" natural gas discovery while drilling onshore in Sumatra, Indonesia. The Malaysian company said Thursday it encountered more than 3,200 feet of natural gas. Indonesia has struggled to expand oil and natural gas production because of aging infrastructure. The EIA, the analytical arm of the U.S. Energy Department, said the country boasts 141 trillion cubic feet of proven natural gas reserves.
Malaysia’s Tenaga exits bid for Ireland’s Bord Gais unit Malay Mail 1 Nov 2013
Malaysian state power firm Tenaga Nasional Bhd has scrapped its bid for the retail arm of Ireland’s Bord Gais Eireann, the Southeast Asian firm’s chief financial officer said yesterday. “We want to focus on our current projects, especially domestic ones,” Fazlur Rahman Zainuddinhe said at a media briefing after announcing Tenaga’s fourth-quarter ended Aug. 31 earnings results. Tenaga saw net profit for the quarter plunge to RM211.8 million from RM1.07 billion in the corresponding quarter last year, due to higher operating costs and a weaker ringgit. Several other unnamed utility companies, infrastructure funds and private equity firms have also put in bids to buy Bord Gais Energy. Bord Gais Eireann announced in May that it had started the sale process for Bord Gais Energy, which sources said will fetch about €1.5 billion (RM6 billion). The deal is part of plan by Ireland’s government to sell state assets worth €3 billion as part of its European Union/International Monetary Fund bailout. RBC Capital Markets is financial adviser to Bord Gais Eireann. The Irish state-owned group wants to complete the sale by the end of the year. Bord Gais Energy has a 445 megawatt power plant, a portfolio of onshore wind assets, and an energy distribution network business in Northern Ireland.
Myanmar
Myanmar drafts national energy policy Global Times 23 Oct 2013
Myanmar is drafting a national energy policy which meets international standard and comprehensive suggestions from development partnership organizations and experts are being invited for the draft, official media reported Wednesday. Myanmar Vice President U Nyan Tun told the National Energy Management Committee that socio-economic development of the country cannot achieve success as expected not because of the lack of reliable energy supply triggered by shortage of investment in power sector and inadequate infrastructure and human resources necessary to utilize sustainable energy resources but because of limitation on investment on renewable energy sector. Development of new technology for electrical and electronic appliances and power-generating facilities requires sustainable investment, energy conservation measures and cost-effectiveness energy saving, he said. The president stressed the need to take effective measures based on technology inspection report while ensuring energy sufficiency for a short period of time and electrification process.
Foreign companies prepare to bid on Myanmar oil and gas rights Financial Times 3 Nov 2013
Dozens of leading international oil companies are jostling for exploration and production rights in 30 offshore oilfields in Myanmar, at the climax of a bidding round seen as one of the most exciting and uncertain for years. ExxonMobil, Royal Dutch Shell and Statoil are among more than 60 businesses pre-qualified for the auction of a prize that could be as big as it is unknown, in an emerging country where commercial prospects are largely untested. International companies are flooding in ahead of the November 15 bidding deadline because what finds there have been off Myanmar’s coast suggest the acreage at stake could be rich in gas, with likely ready buyers in China and other surrounding Asian countries.
ADB grants $60m loan for power Myanmar Times 3 Nov 2013
A US$60 million loan could help bring more reliable electricity to the countryside, Minister for Electric Power U Khin Maung Soe told the Pyidaungsu Hluttaw on October 30. President U Thein Sein has proposed that the loan, from the Asian Development Bank, be accepted. The minister told parliament that it would be repaid over 24 years at 1.5 percent interest, with an eight-year deferment of 1pc interest. “With the cooperation of both local and overseas private companies, the ministry is seeking to boost electricity supplies to every part of the country. We are also trying to expand electrical power distribution to some areas which are still beyond the reach of electricity,” said minister U Khin Maung Soe. ADB consultants suggest that the project should be focused outside the country’s four highest energy consumption regions of Yangon, Mandalay, Magwe and Sagaing, he said.
Planned Electricity Price Increase Sparks Concern Among Businesses Irrawaddy 4 Nov 2013
Business owners and households say they are concerned about the government’s plan to raise electricity prices next month, when rates are set to significantly increase, in some cases with up to 100 percent. On Tuesday, the Yangon City Electricity Supply Board (YESB) announced that households that consume more than 101 units of electricity per month will have to pay 50 kyat (US $0.05) per unit, a price increase of about 40 percent. Businesses that consume between 1 to 5,000 units of electricity per month will experience a 35-percent increase and pay 100 kyat per unit starting November, YESB announced. Companies using more than 5,000 units will see their electricity bills double as rates jump from 75 kyat to 150 kyat per unit.
Myanmar possesses 8.1 trillion cubic feet of gas and 490 million tons of coal, report says Eleven Myanmar 4 Nov 2013
Myanmar currently has 8.1 trillion cubic feet of natural gas and 490 million tons of coal, according to the New Energy Architecture: Myanmar report issued in June. Myanmar currently has explorations at the Yadanar, Yetagun, Shwe and Zawtika natural gas projects. At the Yadanar offshore gas field, a 30-year project, Total E & P Co. from France has sold 600 million cubic feet of gas to Thailand daily since 1998. The company distributes 180 million cubic feet of gas for local use daily. “Another one is the Yetagun offshore natural gas project explored by the Malaysian company Petronas. It has produced 430 million cubic feet of gas and 9,700 barrels of light oil daily since 2000.
Philippines
Aquino open to joint oil-exploration deal with China Business Mirror 23 Oct 2013
President Aquino affirmed Philippine laws will apply even if the government agrees to a joint exploration of the Reed Bank by Forum Energy and China’s state-owned oil company. Interviewed at the Annual Presidential Forum of Manila-based foreign correspondents, Mr. Aquino insisted that any commercial arrangement to jointly explore and extract oil and gas from the Reed Bank off the West Philippine Sea must “conform to our laws.” “We maintain that this is the area that the Forum Energy is exploring is clearly within our EEZ [exclusive economic zone]. And, therefore, any exploitation of the same has to be in conformity with our laws,” the President said. But he said he was leaving it up to Forum Energy and its prospective Chinese partners to work out details should the two groups agree to a joint exploration project under Philippine laws.
Learning From The Philippines In Developing Geothermal Energy National News Agency of Malaysia 31 Oct 2013
Indonesia is a big archipelago made up of big and small islands, rich in natural resources including oil, gas coal and other minerals. However, the country's heavy dependence on mineral resources for energy reaching 95 percent has led to early depletion of the reserves notably oil and gas reserves. In fact, many oil and gas reserves have been exhausted or depleted that resulted in shortage of energy supply in many areas in the country with many still going through a period without electricity, Indonesian news agency ANTARA reported. The government needs to be more serious in addressing the problem and take a bold move toward development of renewable sources of energy that are found in abundance in the country. Indonesia lies in the geological site called 'ring of fire' with many active volcanoes and is blessed with 40 percent of the world's geothermal reserves. Based on data from the Energy and Mineral Resources Ministry, Sumatra has the largest geothermal reserves in the country with reserves found in almost all regions except Papua
DOE urges energy efficiency measures Philippine Star 1 Nov 2013
The Department of Energy (DOE) yesterday urged consumers to conserve energy as maintenance activities are conducted at the Malampaya plant starting Nov. 9. The Malampaya deep water gas-to-power project supplies natural gas to three power plants in Luzon, account for 40 percent of power in the Luzon grid. Energy Secretary Carlos Jericho Petilla appealed to manufacturing plants and large power-consumers in Luzon to coincide their maintenance activities with that of Malampaya activity to minimize the effect on their electricity bills. Households, can conserve energy by unplugging electrical appliances, turning off lights when not in use, and using energy efficient technologies. The DOE is continuously coordinating with the Malampaya consortium, power generation companies, and the Manila Electric Co. to ensure adequate supply of power during the Malampaya platform maintenance from Nov. 9 to Dec. 8. “If we don’t do this and we have a problem, it may get worse. Also, the people must be prepared for higher electricity rates. After all, the most expensive electricity is having no electricity,” Petilla said.
Oil Companies Try to Collaborate in Spite of S. China Sea Disputes VOA 1 Nov 2013
The Philippines and China have developed an openly antagonistic relationship over their South China Sea territorial disputes. But while top officials trade accusations, some groups are looking for ways to compromise and jointly drill for oil and gas. The Philippines' only productive deep-water natural gas project is expected to run dry by 2024. Click to enlarge Click to enlarge The country is desperate to develop new oil and gas wells in the resource-rich South China Sea. Philippines Energy Secretary Jericho Petilla said he is hopeful about the potential for an unlikely collaboration between U.K.-based Forum Energy and state-owned China National Offshore Oil Corporation (CNOOC). "The alternative is not to drill, probably forever... You have to look at the alternatives," he said. "You want to preserve your sovereign rights but at the same time- without actually compromising your sovereign rights, can you come up with commercial [exploration], because we need it."
GE and Trilliant Help to Deliver Benefits to Consumers of the Largest Distribution Utility in the Philippines Market Watch 5 Nov 2013
The Manila Electric Company (Meralco), the largest distribution utility in the Philippines with more than 5 million customers, currently is embarking on its advanced smart grid roadmap with prepay smart metering as its first service. With this, households across Meralco's service territory will be able to better manage their energy consumption and are poised to reap the benefits of a modernized electric system, thanks in part to a smart energy infrastructure by GE's Digital Energy business GE +0.32% and Trilliant. This first phase of Meralco's long-term smart grid vision is integrating "smart intelligence" into the electric distribution network to help consumers better manage their electricity consumption. With this advanced technology, consumers will be empowered with the information that will help them track and manage their energy usage and bills more efficiently and effectively.
Singapore
Singapore Exchange Plans to Launch Electricity Futures Market by 2014 WSJ 28 Oct 2013
Singapore Exchange Ltd. (S68.SG) said Monday it plans to launch an electricity futures market, potentially Asia's first, by the end of 2014. Such a market would "serve as a strategic tool for market participants to manage price risks arising from business operations, and to enjoy the benefits of price discovery and asset optimisation in the electricity market," SGX said in a statement. A number of power companies have expressed interest in becoming market makers for the electricity futures market, SGX said. They include YTL PowerSeraya, Senoko Energy, Tuas Power Generation, Sembcorp Cogen, Keppel Merlimau Cogen and Tuaspring. SGX said it is in discussions with these companies, as well as Singapore's Energy Market Authority and Energy Market Co., to design derivatives products for the electricity futures market.
Energy prices unlikely to fall despite plans to raise S'pore LNG supply, say analysts Channel News Asia 30 Oct 2013
Singapore's plans to increase its supply of liquefied natural gas (LNG) will boost energy security for the country, say analysts. But they warn consumers not to expect lower electricity prices in the long run. About 90 per cent of Singapore's electricity is currently generated from natural gas that is imported from Malaysia and Indonesia via pipelines. The plans to increase the supply of LNG to meet growing electricity demands are expected to strengthen the country's energy security. Melissa Low, energy analyst for National University of Singapore’s Energy Studies Institute, said: “This means that we've managed to diversify our energy sources and tap on newer, perhaps unconventional sources of gas from the Middle East. "(And) possibly even in the future, from the US, and that might result in greater opportunities, (for example) more jobs for Singapore." But experts are not expecting electricity prices in Singapore to go down. Ms Low explained: “We have been used to (piping) natural gas from Malaysia and Indonesia, and now we have this LNG terminal, which definitely will enhance our energy security because then we have a pool of natural gas available to us at easy disposal. So that definitely it helps a lot.
Singapore launches first cleantech incubator Eco Business 30 Oct 2013
Budding cleantech entrepreneurs in Singapore will soon get dedicated help to transform their ideas and solutions into reality with the launch of Singapore’s first cleantech incubator. The Sustainable Energy Association of Singapore (SEAS), together with six industry leaders from the fields of engineering, research and investment announced the new initiative on Tuesday at the Asia Future Energy Forum, part of the annual Singapore International Energy Week held at Marina Bay Sands. Edwin Khew, SEAS chairman who gave the opening speech at the event, noted how Singapore is primed to be a hub for sustainable energy in the region. Singapore has the technical, financial and knowledge capabilities to provide support especially to companies, both local and foreign, who want to increase their knowhow and service in Asia, he said. The incubator-accelerator and its partners will serve as the primary enabler for this, he added. It will “provide incubatees with finance, R&D support, enterprise and management start-up support, market intelligence including project financing support and facilitate partnership development with Singapore companies”.
3 clean energy companies announce investments in S'pore Channel News Asia 31 Oct 2013
Three clean energy companies have announced new investments in Singapore on Thursday. The three firms are German solar project developer Saferay, US smart grid technology provider Demansys Energy, and Hanergy, the largest privately owned clean energy firm from China. Hanergy and Saferay will be establishing their international headquarters in Singapore. Hanergy said in a press statement that the global headquarters in Singapore will oversee its sales and investment activities worldwide. "The global headquarters will develop significant internal capabilities such as information technology infrastructure and customer relationship management tools to readily address customer's energy needs," said Jason Chow, Chairman and CEO of Hanergy Global Investments & Sales. "The headquarters will also capitalise on emerging solar PV (photovoltaic) trends such as rooftop solar PV system leasing that is gaining significant interest with commercial and residential building owners." As for Saferay, its international headquarters in Singapore has already taken over responsibility for the entire Asian solar project business as well as the worldwide supply chain management for the entire group.
Thailand
Thailand’s expanding energy consumption Thailand Business News 24 Oct 2013
According to Oxford Business Group latest report, energy consumption in Thailand is set to jump by 75% over the coming two decades as the economy expands and a more affluent society takes to the roads in increasing numbers. However, this new growth and mobility will come at a cost, with dependence on oil imports set to rise and increasing susceptibility to external price shocks. A recent report from the International Energy Agency (IEA) on the energy outlook for South-east Asia, released on October 2, found that Thailand’s oil import bill could climb to $70bn by 2035, three times its present level. According to the report, Thailand is the second-largest energy consumer in the region, ranked behind just Indonesia. Its energy requirements amounted to 118m tonnes oil equivalent (TOE) in 2011, with almost all of this met through imports. The IEA estimates that Thailand’s energy consumption will hit 206m TOE in 2035, amounting to a 75% increase over the two-decade-plus period. While the agency says the country’s population will remain relatively stable, the economy will treble in size over the coming 22 years, driving the higher demand for energy, with oil continuing to be the fuel of choice.
Conergy Constructing Solar Power Plants in Thailand Solar Novus Today 30 Oct 2013
Conergy is constructing a large-scale solar project with a total capacity of 21 megawatts (MW for the Bangkok-based Siam Solar Energy 1 Co., Ltd., a subsidiary of Thai Solar Energy Company Limited. The two new solar power plants, each with a capacity of 10.5MW, are located in the provinces of Suphanburi and Kanchanaburi in western Thailand, 130 kilometers from Bangkok. Conergy acts as general contractor for this large-scale order, assuming responsibility for the entire planning, engineering and design as well as for the supply of the components and the installation. Conergy is working with its longtime local partner Ensys on the construction of the two solar plants, which will cover about 370,000 square meters in total – an area larger than 50 soccer fields.
Energy MoU with Russia endorsed The Nation 1 Nov 2013
The Cabinet Friday endorsed the memorandum of understanding between Thailand and Russia's energy ministries, which calls for cooperation in the areas involving oil, natural gas, coal, electricity, renewable energy and alternative energy and others. Deputy Government Spokesman Phakdeeharn Himathongkham unveiled that under the MoU, both sides will set up a joint working group, to devise long-term strategies and propose measures necessary to support their strategies. The MoU will cover a 3-year period, renewable for another three years but the life of projects forged under the MoU could be longer.
Thai fuel cell deal for plasma gasification waste to energy firm Waste Management World 4 Nov 2013
London based Waste2Tricity, which plan to implement use plasma gasification waste to energy technology in facilities which utilise fuel cells, has acquired the exclusive rights for AFC Energy (AIM: AFC) hydrogen fuel cells for deployment in Thailand’s waste to energy sector. The company said that it already owns the deployment rights for the UK and has secured the right of first refusal for additional territories including Europe and North America. Waste2Tricity International (Thailand) (W2T has entered into the licence agreement with AFC Energy, making the company the exclusive Thai agent for AFC’s fuel cells for waste gasification applications. According to the company, deployment of the commercial fuel cell will enable it to establish the technology in the Thai market. Married to Alter NRG’s Westinghouse plasma gasification technology as the front end conversion, Waste2Tricity claimed that AFC Energy fuel cells create a commercial model that will substantially outperform any other proposal.
Vietnam
Vietnam starts work on $9 bln refinery Thanh Nien News 24 Oct 2013
Construction on Vietnam’s second refinery started Wednesday as the country plans to increase its petroleum output to meet growing energy demand. The Nghi Son refinery, which will cost a total of around US$9 billion to build, will have a refining capacity of 200,000 barrels per day, or 10 million tons per year, once it comes online in 2017. As a team, the new plant and the existing Dung Quat refinery are expected to satisfy 65 percent of the nation’s oil and gas needs by 2020. Dung Quat, Vietnam’s first refinery, opened in the central province of Quang Ngai in 2009. Located in Thanh Hoa Province, about 200 kilometers south of Hanoi, the Nghi Son refinery will import oil from Kuwait to process it into liquefied petroleum gas (LPG), gasoline, diesel fuel, jet fuel, polypropylene, paraxylene, benzene and sulphur. Speaking at the groundbreaking ceremony, Prime Minister Nguyen Tan Dung appreciated the efforts of PetroVietnam and foreign partners for arranging capital and completing investment procedures to enable the groundbreaking.
UK firm to help bring ‘rice power’ to Vietnam Energy Live News 30 Oct 2013
A UK firm is helping to bring 200MW of ‘rice power’ to Vietnam after teaming up with a Malaysian company. The new project worth 1.94 billion Malaysian ringgit (£384m) is to build 20 biomass plants in Vietnam. The 10MW plants will be fuelled by rice husks using a combustion system developed by the UK’s Torftech. The firm said the system will produce “non-hazardous high quality ash” that can be used in place of cement to strengthen concrete. Torftech is licensing the technology to CHE Group, which will manufacture the systems in Malaysia. A joint venture between the two called TORCHE Energy will be the main contractor. The biomass plants will be installed over five years in six Vietnamese provinces. Construction is set to begin by the end of 2013. As well as displacing fossil fuel use, the project should also cut greenhouse gas emissions by preventing rice husks from being burnt in the open to get rid of the waste. Douglas Barnes, HM Consul General and Director of UK Trade and Investment in Vietnam said: “The emerging biomass and waste to energy markets in Vietnam show enormous potential and it is encouraging that British, Malaysian and Vietnamese companies have collaborated to develop appropriate technologies to meet the anticipated rapidly growing demands in this market sector.”
New JV to build 200MW of biopower capacity in Vietnam Bio Energy Insight 30 Oct 2013
Vietnamese biopower producer Hau Giang Power Plant Joint Stock Company and Malaysia's CHE Group have signed a memorandum of understanding to build 20 biomass-fired power plants across southeast Vietnam. The plants, each to generate 10MW of renewable energy, will use rice husk as feedstock. They will be located in six provinces: Dong Phap, Hau Giant, An Giang, Can Tho, Kiew Giang and Soe Trang. CHE won the RM1.97 billion (€450 million) contract, which will see it design, engineer and commission the 20 rice husk plants. It was awarded the contract over other interested bidders from China and Singapore. The contract also involves the supply of related equipment for power generation at all plants. Chong Che Chek, business director of CHE, says: 'The plants will be installed in four phases over five years with the engineering work of the first plant to start by year-end. This is the first of its kind power plant to be built in Vietnam and one of its unique features is the ability to produce non-hazardous high quality ashes.' These ashes have the potential to be converted into cement substitute and silica fume for the semi-conductor industries
Vietnam’s REE Bets on Market-Based Energy Pricing Future Bloomberg 4 Nov 2013
Refrigeration Electrical Engineering Corp. plans to buy more stakes in Vietnamese state-run power companies, anticipating the government will gradually deregulate electricity pricing. “I hope that in the near future, this energy market will change,” General Director Nguyen Thi Mai Thanh said in an interview. Power prices should “free over time, some percentage every year,” she said. REE, as the company is known, said last week profit surged 71 percent in the nine months ended Sept. 30, buoyed by investment income. The company will seek opportunities to add more utility assets and may consider separately listing the power and water holdings eventually, she said. Vietnam is moving the power sector toward competitive market-based arrangements, the World Bank said in a report this year. As the country struggles with slower economic growth, the government is seeking ways to save money. The government raised the average retail power price in August by 5 percent to 1,509 dong (7 cents) per kilowatt hour, according to state utility Vietnam Electricity Group.