ASEAN seen pushing gas, electricity freeway

ASEAN seen pushing gas, electricity freeway

MANILA (Reuter): Southeast Asian energy ministers could bring more focus to a long-standing plan to set up a regional gas and electricity "freeway" at their annual meeting next week, ASEAN energy officials said.

"There will definitely be discussion on the pipeline and the grid," Philippine Energy Secretary Francisco Viray told Reuters in interview yesterday.

"This ASEAN freeway may be a pipe-dream before but it's closer to reality now as there have been recent confirmation of sizable volume of natural gas within the region such as Natuna in Indonesia and our own Camago-Malampaya," Viray said.

Energy ministers from the Association of Southeast Asian Nations (ASEAN) and their senior officials will meet in Manila from June 30 to July 3.

However, the minister of the group's only OPEC member --- Ida Bagus Sudjana of Indonesia -- may not come, Viray said.

Malaysia's Minister of Energy Leo Moggie said the proposed gas pipeline and electricity grid would be tackled at the meeting.

However, Singapore energy officials said they did not expect any major anouncements.

At last year's meeting, ministers called for the private sector to help build the proposed $15-20 billion gas pipeline.

"To date, there's really no ASEAN energy project outside of data gathering, technology transfer and the like. Hopefully, either one of the two will be the first ASEAN project," Viray said.

"We will support any proposals that will further these two projects because the ASEAN electricity grid will support our plan of being an electricity exporter and the gas pipeline will help develop our gas industry," said Viray.

With the increasing need for financing in the energy sector, the meeting will also hope to discuss the private sector's role in ASEAN projects through the ASEAN Energy Business Forum, a recently created regional venue for private sector and government dialogue, he said.

"What also makes this meeting different is that three incoming members of the ASEAN will be present as observers," said Department of Energy Assistant Secretary Cyril del Callar who would also be leader of the Senior Energy Officials Meeting.

ASEAN groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, and recently agreed to admit Cambodia, Laos and Burma.

Thailand also wants to discuss the ASEAN Mekong Basin Development Cooperation.

"Details of this project, which calls for producing electricity and hydropower from the Mekong River, are still unknown as Malaysia will report on it for the first time at this meeting," said Sittichod Wantawin, chief analyst of the National Energy Policy Office.