ASEAN to form gas pipeline council

The Association of Southeast Asian Nations, or Asean, will create a council by July 2003 to oversee the US$7 billion trans-Asean gas pipeline project, Asean Center for Energy Executive Director Guillermo Balce said Wednesday.

"It's main responsibility will be to ensure that the pipeline project is progressing," Balce told Dow Jones Newswires.

The Asean Gas Consultative Council - as it will be called - will include representatives from every Asean member.

The council will develop regulations and frameworks for the cross-border supply, transportation and distribution of natural gas throughout the region.

The ambitious pipeline project is designed to help alleviate concerns about threats to long-term oil supplies in the region.

While many Western countries have large oil stockpiles that can be tapped in case of unexpected supply disruptions, Southeast Asian nations don't have such reserves.

Asean also expects most countries in the region to become net oil importers within the next 10 years.

Asean members have also previously noted that a regional gas pipeline, as well as electricity networks, are the most efficient way for Asean countries to prevent a future energy crisis.

The gas grid is expected to be completed in 2020.

Indonesia has already developed several pipelines - from West Natuna to Singapore, West Natuna to Malaysia, and from South Sumatra to both Singapore and Malaysia. It is also studying a possible pipeline from West Natuna to Thailand.

Asean comprises Cambodia, Brunei, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam and the Philippines. (*)