ASEAN gas grid project develops slowly<\/p>\n
Cameron Dueck, Reuters, Singapore<\/p>\n
Southeast Asian states are slowly putting together the pieces
\nof a US$6 billion gas pipeline network that will harness the
\nregion's rich reserves and alleviate dependence on imported oil.<\/p>\n
The Trans-ASEAN Gas Pipeline plan, linking supply to demand
\ncenters in Malaysia, Singapore, Indonesia, the Philippines,
\nMyanmar, Vietnam and Thailand, was first proposed in 1996 with a
\n$15 billion price tag.<\/p>\n
Five years on, the plan has been downsized and proposed
\ninvestment slashed by more than half. ASEAN states are due to
\nsign a memorandum of understanding for the proposal in July 2002.<\/p>\n
Analysts and industry officials say regional demand, driven by
\ngas-fired power generation, should be strong enough to create
\nmany of the smaller spurs and links by 2007. But political and
\neconomic issues could delay completion for decades.<\/p>\n
\"The main idea for the grid is to supply gas to power plants
\nwithin the region,\" said Guillermo Balce, executive director of
\nthe ASEAN Centre for Energy (ACE) in Jakarta.<\/p>\n
\"The bigger links will take some time to develop, towards 2010
\nor even later. Especially because the key to the major links is
\nEast Natuna,\" Balce told Reuters.<\/p>\n
The Asia-Pacific region contains 10.33 trillion cubic metres
\nof proven gas reserves, or just under seven percent of the world
\ntotal, according to the 2001 issue of the BP Statistical Review.<\/p>\n
Malaysia and Indonesia hold the largest single reserves at
\n2.31 and 2.05 tcm respectively, making up about 42 percent of the
\nregional total.<\/p>\n
\"Southeast Asia is a self-contained market for supplies and
\nconsumption of gas. It is a region where there is not one major
\ngas supply field. Each market has its adjacent supply,\" said
\nGavin Thompson, Asia Pacific energy consultant with Wood
\nMackenzie in Edinburgh.<\/p>\n
Initial Trans-ASEAN pipeline plans five years ago were greeted
\nwith skepticism as more of a politically-led drive rather than a
\nsound economic and commercial plan.<\/p>\n
But single pipelines have sprouted up as gas markets have
\ndeveloped, laying the framework for a region-wide gas grid to
\ngrow organically.<\/p>\n
Under the new plan, seven pipeline projects are slated for
\ncommissioning between 2002 and 2016 with Indonesia's Natuna gas
\nfields in the South China Sea playing a central role.<\/p>\n
Major links would include a line from East Natuna to Erawan,
\nThailand via the Joint Development Area (JDA) in the Gulf of
\nThailand and a pipeline from East Natuna to Kerteh, Malaysia via
\nthe West Natuna field.<\/p>\n
West Natuna also will be connected to Malaysia via a pipeline
\nto the offshore Duyong gas facility. The JDA is slated to link to
\nVietnam's Block B gas field in the Gulf of Thailand.<\/p>\n
The longest development would be a 1,540-kilometer pipeline
\nfrom East Natuna to the main island in the Philippines, Luzon,
\nvia Sabah in East Malaysia and the Malampaya field off the
\nPhilippine island of Palawan.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-gas-grid-project-develops-slowly-1447893297",
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"sponsor": "Okusi Associates",
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