Malaysia warns ASEAN of energy supply risks<\/p>\n
Lawrence Yong, Reuters, Kuala Lumpur<\/p>\n
Malaysia, an oil producer and promoter of a massive regional
\ngas pipeline, on Monday urged fellow ASEAN nations to increase
\nenergy cooperation in the face of threats to supply.<\/p>\n
\"The current risk of supply disruption is very real and may
\nperhaps carry greater repercussions than the 1973 oil embargo,\"
\nMalaysia's Deputy Prime Minister Abdullah Ahmad Badawi told an
\nenergy conference.<\/p>\n
\"ASEAN should review the ASEAN petroleum security
\nagreement ...to minimize exposure towards emergency situations
\nowing to short term shortages in petroleum supply,\" Abdullah
\nsaid.<\/p>\n
He cited the Israel-Palestinian crisis, threats of terrorism
\nand high-running tensions between India and Pakistan as factors
\nthat could lead to supply disruptions.<\/p>\n
The two-day 7th Asia Oil & Gas Conference is the first major
\ngathering of Asian oil company leaders since the Sept. 11 attack
\non the United States.<\/p>\n
Politics and economic factors largely outside the industry's
\ncontrol have rocked oil prices since the September assaults and
\nsent them swinging between US$18 and almost $30 a barrel.<\/p>\n
Asia pumps only around one-third of its crude requirements of
\nsome 20 million barrels per day (bpd) and is dependent on the
\nMiddle East for 70 to 80 percent of imports.<\/p>\n
President and CEO Hassan Marican of Malaysia's state oil
\ncompany Petronas, said measures underway include a review of the
\nAssociation of South East Asian Nations oil security agreement
\nand closer upstream cooperation.<\/p>\n
\"What the 21st century oil and gas industry needs is not only
\na dynamic business plan, but also real time strategies that could
\nswiftly respond to different scenarios,\" Hassan said.<\/p>\n
He said the ASEAN energy security pact needed urgent review
\nfollowing expansion of the group of Southeast Asian countries --
\nMalaysia, Singapore, Indonesia, Vietnam, Thailand, Brunei, Laos,
\nCambodia, the Philippines and Myanmar .<\/p>\n
\"The key thing is that ASEAN today is made up of 10 member
\ncountries compared to the four or five countries when this
\nconcept was introduced,\" Hassan said.<\/p>\n
\"It's timely for this provision to be relooked, redefined. It
\nwould result in a new set of understanding.\"<\/p>\n
Hassan did not detail the arrangement but said it calls on
\nmember countries to provide mutual help during times of supply
\ngaps. Only four ASEAN countries -- Malaysia, Indonesia, Vietnam
\nand Brunei -- export crude oil.<\/p>\n
Hassan said the petroleum security agreement had been
\nactivated only several times in the last 30 years, most recently
\nwhen Indonesia's Arun liquefied natural gas plant was down after
\nExxon Mobil withdrew staff because of local unrest.<\/p>\n
The Malaysian deputy prime minister said border politics
\nshould be downplayed where energy is concerned.<\/p>\n
\"We need to speed up in implementation of cross-border oil and
\ngas supply infrastructure,\" Abdullah said.<\/p>\n
Malaysia, through Petronas, has championed the massive Trans-
\nASEAN gas pipeline project as well as recent cooperation with
\nIndonesia, Thailand and Vietnam to explore for oil and gas in
\ncommon areas.<\/p>\n
Japan, Asia's largest oil consumer and virtually entirely
\nimport dependent, however, appeared not to share Malaysia's
\nappetite for regional oil security cooperation.<\/p>\n
\"I don't think so. We have energy dialogue, not security,\"
\nKazuo Matsunaga, Director general of Japan's Agency of Natural
\nResources and Energy said.<\/p>\n
Matsunaga said Japan was ready only to deliver technical
\nassistance and experience in stockpile issues.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malaysia-warns-asean-of-energy-supply-risks-1447893297",
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