Trans-ASEAN gas project on schedule
Trans-ASEAN gas project on schedule
Julia Yeow, Agence France-Presse, Kuala Lumpur
Work on a regional gas project linking the national networks of Southeast Asian countries is on track despite the global economic slowdown, the project chief said Tuesday.
Mohd Farid Mohd Amin, chief coordinator of the Trans-ASEAN Gas Pipeline (TAGP) taskforce, attributed this to the undiminished need for cheaper and more efficient energy sources in the region.
The network, which will link the 10 members of the Association of Southeast Asian Nations (ASEAN), is due to be completed in 2015 at an estimated cost of US$7 billion, excluding drilling.
"The slowdown might impact the scheduling of the project, but work will not be greatly hindered because member countries still need energy and want to expand their energy sources," Farid told AFP.
"We are currently on track and will continue to use all the resources we have.
"We already have all the support from the governments, from the officials, so the ingredients are already there. Now (we are waiting) for the relevant parties to come in," he said.
Despite his optimism over the scheduled completion of the 4,000-kilometer pipeline, Farid acknowledged there were many obstacles ahead.
The gas grid project, besides facing problems in terms of regulatory, legal and environmental cross-border issues, would now have to deal with the rise in costs after the economic downturn, he said.
"In view of the relatively high cost of delivering this natural gas, a creative win-win arrangement for gas sellers and buyers and more cost effective technology is necessary," Farid earlier told an ASEAN Council on Petroleum conference here.
The proposed establishment of an ASEAN gas consulting committee and gas center would also facilitate the resolution of cross-border issues and help resolve the problems faced by the project, he told AFP.
Farid said the implementation of the project would spur further economic development within member countries, which in turn would create opportunities for gas- and petrol-related businesses in the region.
Gas would remain as the fuel of choice in the region over coal despite its higher price per unit, he said.
"If you look at cost competitiveness, and not solely on unit price of coal versus gas, and compare the price of processing and generating energy from the two, gas is still competitive compared to coal."
He added gas would still be the preferred source of energy over coal or oil because of environmental factors.
"If gas infrastructure can be developed, then we can replace coal or oil because it's cleaner," he said.
"All we need to do is build it up, and that is what we hope to achieve with this project."
The TAGP and the ASEAN power grid, which hopes to set up a regional interconnection power line between member countries, make up the proposed Trans-ASEAN energy network.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.