Asia Pacific needs to look for new energy sources for sustainable economic growth
Tuesday, October 21 2003 - 05:28 AM WIB
Bangkok, Thailand (20 October 2003) - Energy remains the key driver of economic growth in Asia Pacific countries and the region needs to keep on exploring for new sources of fuel for its sustainable development, according to government and private energy experts.
Speaking at a session on energy issues at the APEC CEO Summit, Indonesian Energy Minister Purnomo Yusgiantoro said the region's economic growth has largely depended on oil with the supply coming from the Middle East. This, he said, has put oil supply as a security factor for the Asia Pacific region.
Indonesia has been searching for alternative sources of energy to maintain economic growth although oil and coal reserves remain abundant in the country, Purnomo said.
He said Indonesia has been creating an environment that would attract foreign investment to its energy sector, and has been working with neighboring countries to jointly develop new fuel sources.
Thai Energy Minister Dr. Prommin Lertsuridej told the same session that the Thai government has been looking beyond the country's borders for energy development.
Dr. Prommin said: "Therefore, our government sees the potential for greater integration of energy supply and demand in a region that extends from the southern part of China to Indochina to other principal states of ASEAN.
"The idea of an ASEAN gas pipeline and power grid would lead to an inter-connected regional market of gas and electricity that would go a long way to ease the potential strain on the region's energy resources."
He told the participants that the Thai government plans to invest about US$700 million to construct a land bridge connecting the Andaman Sea in the west of southern Thailand to the Gulf of Thailand in the east.
He said the land bridge would help to transport oil from the Middle East to North Asia, alleviating shipping traffic through Malacca Straits.
Dr. Prommin said the Thai government plans to further privatize its state-owned power enterprises to enhance efficiency in the energy sector and to draw long-term investment into the country.
Hiroshi Urano, president of Japan's International Gas Union, said his company has been investing on developing methane-based fuel sources, which would help to reduce carbon dioxide omission from engines. He said other sources of clean energy has also been explored for commercial purposes in the future.
Maximo Blandon, managing director for global capital markets at Morgan Stanley & Co., said the Asia Pacific Energy Research Center projected that by 2020, the region would need US$2.2 trillion to US$2.8 trillion to invest in infrastructure and transportation and another US$1.35 to US$1.42 trillion in electricity generating capacity.
Blandon said to continue to draw foreign investment into the energy sector, governments in the region have been privatizing state-owned energy enterprises. But he said governments should look at domestic financial sources to finance energy projects as well.
"Raising trillions of dollars over the next 20 years is not an easy by any means for any country at any part of the world given today's volatility," he said. (end of release)