ASEAN to work with China, Japan for energy security
ASEAN to work with China, Japan for energy security
Agence France-Presse, Langkawi, Malaysia
Energy ministers of the Association of Southeast Asian Nations (ASEAN) pledged on Thursday to intensify efforts to diversify energy sources and cooperate with China, Japan and South Korea to boost energy security in the region.
Due to East Asia's growing demand and depletion of fossil fuels, ASEAN will forge a partnership with the three countries to address concerns in energy security, natural gas development, oil stockpiling and renewable energy, the ministers said in a joint statement.
An energy policy governing group has been established to provide direction for the cooperation, according to the statement issued after a one-day meeting here to bolster regional energy collaboration.
Malaysia's Energy Minister Leo Moggie said ASEAN ministers agreed that their counterparts in China, Japan and South Korea would join them formally for the first time at their next meeting in the Philippines in May next year.
Moggie, who chaired the talks, said the global energy environment is becoming much more challenging and less predictable.
The region needs to cooperate with the three countries to attract investment, funding and expertise to exploit untapped energy resources including oil, gas and hydro-power, he said.
"It is a milestone achievement towards energy cooperation," he told reporters after wrapping up the meeting.
"We need investment from outside to assist in the exploration of our resources. Our three partners have the expertise and financial strength."
Asked to comment on Japan's push for ASEAN to build oil stockpiles, Moggie said the newly formed energy policy group would study the issue and provide recommendations.
Japan floated the stockpile proposal as an emergency response mechanism during a high-level official meeting in the Malaysian capital last month.
Japan has a 170-day stockpile and South Korea 100 days, while officials estimate most ASEAN countries have stockpiles of 35 to 40 days only.
During the talks here, Japan offered to provide soft loans and technical know-how for the construction of stockpile infrastructure in the region but not for the purchase of the oil itself.
Oil from the Middle East accounts for some 90 percent of imports for Japan, while Asia relies on imported oil for more than two-thirds of its daily needs of more than 21 million barrels.
Most ASEAN members, however, oppose large stockpiles as they are expensive to maintain and could be potential targets for terrorist attacks.
Hassan Merican, president of Malaysia's national oil company Petronas told reporters that the time was not right for ASEAN to stockpile oil.
"Stockpiles are costly to hold. Within ASEAN, there is a petroleum security arrangement. ASEAN has a mechanism to support one another in time of supply shortages," he said.
Hassan said Petronas would explore ways to cooperate with China, Japan and South Korea in both downstream and upstream activities to enhance energy security.
"There are already joint-ventures, not only in ASEAN but outside the region," he added.
Guillermo R. Balce, executive director of the Jakarta-based ASEAN Center for Energy, warned Tuesday that ASEAN must intensify efforts to cut its reliance on oil since the 10 member grouping would collectively be a net energy importer by 2020.
ASEAN must build greater dependence on renewable energy resources such as hydro, wind, solar and bio-mass to ensure energy security, he said.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.