Asean energy ministers sign memorandum on gas pipeline project
Wednesday, September 25 2013 - 12:46 PM WIB
Energy ministers of the Association Southeast Asian Countries (Asean) signed on Wednesday the memorandum on the extension of the Trans Asean Gas Pipeline project (TAGP).
The memorandum was signed by energy ministers of Indonesia, Singapore, the Philippines, Myanmar, Malaysia, Lao PDR, Cambodia, Brunei Darussalam, Thailand and Vietnam during the 31st AMEM (Asean Ministers on Energy Meeting) in Nusa Dua, Bali.
"We had a very productive meeting with dialog partners China, Japan and Korea. All countries in Asean agreed that demand for energy is growing. We also agreed that the increasing demand should be fulfilled.
?We discussed how to fulfill the demand. Most of Asean countries depend on oil. We don't have much oil but we also have coal, and new and renewable energies. In this meeting we discussed on new and renewable energies and energy conservation,? Indonesian Minister of Energy and Mineral Resources Jero Wacik told reporters on the sidelines of the 31st AMEM.
TAGP is an ambitious project aimed to integrate all gas pipelines and electricity grid across Asean countries to ensure a secure and reliably energy and electricity supplies for all Asean member countries. The project was originally projected to be in full operation by 2020, but many analysts doubt the goal can be achieved in view of the different interests of each Asean member countries.
A number of gas pipelines have been built to connect two Asean countries, but there aren?t yet any efforts to connect the pipelines. Indonesia for instance already built a gas pipelines from Sumatra and Natuna Sea to Singapore and from Natuna Sea to Malaysian peninsula. There isn?t yet however a pipeline connecting Indonesia with Thailand. A power grid is also being built to allow power supplies from Malaysia?s Serawak state to Indonesia?s West Kalimantan.
Malaysian firm Petronas has been entrusted to lead the task force for the development of TAGP.
Under the memorandum signed in Bali on Wednesday, the Asean energy ministers agree to extend the period of TAGP development until 2024.
Upstream authority SKK Migas voiced supports for the development of TAGP, noting however it will take time to build such an integrated network.
?Obviously, the plan is a good one. But the development of the pipeline depends on supply and demand. We can?t build it all at once, but one segment after another. For instance, we already have a Natuna-Singapore pipeline and we plan to build another pipeline linking Natuna and Batam,? SKK Migas? Commerce Control Deputy Widhyawan Prawiraatmadja said.
Editing by Johannes Simbolon