Trans-ASEAN gas pipeline faces huge challenges ahead<\/p>\n
SINGAPORE (AFP): The initial links for a natural gas pipeline
\nnetwork across oil-dependent Southeast Asia are slowly being
\nlaid, but formidable challenges lie ahead, experts and officials
\nsaid.<\/p>\n
Completion of a 656-kilometer (406-mile) pipeline that began
\ndelivering natural gas from Indonesia's West Natuna fields to
\nSingapore in January has rekindled hopes that the ambitious
\ntrans-ASEAN gas network will be realized by its target date of
\n2020.<\/p>\n
Already, another high-pressure pipeline, spanning 500
\nkilometers (310 miles) to deliver natural gas from South Sumatra
\nto Singapore would be completed by 2003.<\/p>\n
Negotiations are in the works for a major gas supply deal
\nbetween Indonesia and Malaysia expected by April.<\/p>\n
These national and bilateral links are to be integrated into a
\n10 country regionwide network, which would complement a planned
\nregional power grid, according to the plan.<\/p>\n
\"The trans-ASEAN gas pipeline will increase the security of
\nnatural gas supply within ASEAN (Association of Southeast Asian
\nNations),\" Singapore Trade Minister George Yeo said at a recent
\nenergy conference here.<\/p>\n
He expressed hope that Singapore's two multi-billion dollar
\nnatural gas deals with Indonesia \"will take us a step closer
\ntowards the establishment of an ASEAN (gas) grid.\"<\/p>\n
ASEAN groups 10 countries with diverse political systems,
\ncultures and economies -- Brunei, Cambodia, Indonesia, Laos,
\nMalaysia, Myanmar, the Philippines, Singapore, Thailand and
\nVietnam.<\/p>\n
With an estimated 227 trillion cubic feet of natural gas
\nwaiting to be tapped, ASEAN is well positioned to slash its
\ndependence on imported oil.<\/p>\n
Volatile oil prices have been a perennial worry for key ASEAN
\nmembers, where crude cost adjustments are a politically sensitive
\nissue.<\/p>\n
However, challenges ranging from funding to cross border
\nissues such as taxation, ownership, transit rights, third party
\naccess, pricing and harmonization of technical standards, needed
\nto be resolved first, experts said.<\/p>\n
Deregulation of national markets for gas and electricity is
\nalso a must, although such a move could be cumbersome because it
\nrequires legislation in many countries.<\/p>\n
Mohamad Farid Amin, the lead coordinator of a task force for
\nthe pipeline, said they have come up with a draft memorandum of
\nunderstanding that seeks to address these issues.<\/p>\n
Energy ministers will review the draft before it is adopted by
\ntheir respective governments.<\/p>\n
Edu Hassing, a senior projects officer with the Asian
\nDevelopment Bank, said financing would be crucial as countries
\nwhich have just emerged from a crippling economic crisis were
\nunlikely to have the money for the projects.<\/p>\n
Guillermo Balce, executive-director of the Jakarta-based ASEAN
\nCenter for Energy, estimates the pipeline network would need
\ninvestments of at least 10 billion US dollars over the next 10
\nyears.<\/p>\n
Singapore's Yeo said government support \"must be complemented
\nby private sector participation to ensure that the projects
\nproposed are commercially sensible and financially viable.\"<\/p>\n
Conoco Indonesia Inc. of the United States, Canadian firm Gulf
\nResources Ltd. and Premier Oil Natuna Sea Ltd. of Britain
\nploughed about 1.5 billion US dollars for the Natuna-Singapore
\npipeline alone.<\/p>\n
While the resources are abundant, Yeo said \"we need to develop
\nan efficient market for these resources and establish a
\nregulatory structure and a cooperative framework which encourage
\nprivate investment.\"<\/p>\n
About 6,000 kilometers (3,720 miles) of pipelines are already
\nin place within Southeast Asia, including a network linking
\nThailand to gas fields in the Gulf of Thailand. Another pipeline
\nnetwork allows Myanmar to deliver gas to Thailand.<\/p>\n
Some 7,000 kilometers (4,340 miles) of pipelines are in the
\nplanning stage to complete the jigsaw puzzle, according to ASEAN
\nfigures.<\/p>\n
Among them is a submarine pipeline from the Camago-Malampaya
\nfields in the western Philippines to land gas on the main island
\nof Luzon currently being built by a unit of the Royal Dutch Shell
\nGroup, and a network to bring gas from the South China Sea to
\nindustries in southern Vietnam.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/trans-asean-gas-pipeline-faces-huge-challenges-ahead-1447893297",
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