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Thailand welcomes Chevron’s resumption of talks to resolve energy dispute

29 September 2019

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Thailand

BANGKOK (Reuters) – Thailand’s energy minister on Sunday welcomed a decision by U.S. energy company Chevron to continue negotiations rather than seek arbitration to resolve a dispute over who should pay for removing offshore oil and

Thailand wants Chevron to pay the full decommissioning costs, estimated by a local newspaper at around $2.5 billion, for infrastructure at the Erawan gas field, which it is due to hand over to Thai state oil firm PTT Exploration and Production Pcl in April 2022 when its concessions expire.

Reuters first reported last week that the U.S. company had “temporarily suspended” a plan to seek arbitration in order to allow more time for talks with Thailand’s energy ministry, but that arbitration was still a possibility “within weeks” if talks do not succeed.

Thailand’s energy minister Sontirat Sontijirawong said on Sunday the Chevron’s decision was a good sign that the two parties could work together to resolve the dispute and ensure a smooth handover of the gas field.

“Chevron’s decision to hold off the arbitration process to continue negotiations is welcomed,” energy minister Sontirat Sontijirawong said.

“I also believe that we will arrive at the best agreements while prioritizing Thailand’s interests,” he added.

The dispute arose in 2016 when Thailand retroactively enforced a new energy ministry regulation requiring gas field operators to pay the costs of decommissioning all assets they have installed even if they no longer operate them.

Chevron argues that under the terms of its initial contracts from 1971 it is only liable for infrastructure that is no longer deemed usable before it hands over the field to another operator.

The new law would require Chevron to pay the future costs of decommissioning all the infrastructure it has installed at the Erawan field, including still usable assets it will transfer to PTTEP free of charge.

The dispute has implications for other international energy companies such as France’s Total and Japan’s Mitsui & Co, which also have stakes in offshore energy concessions in the Gulf of Thailand.

Outside of the oil and gas industry, other foreign investors in Thailand were also concerned about the retroactive use of laws, and what precedent the case might set for the sanctity of their contracts.

gas platforms.

Others

Malaysia will not pay to return illegally imported waste, says Yeo

28 September 2019

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Malaysia

GEORGE TOWN (Bernama): The federal government will not spend a single sen to send illegal waste-filled containers back to the countries of origin, says Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin (pic).

She said the ministry has been working closely with the Penang government and has contacted the respective embassies to return the waste to the companies and countries in charge.

“It’s not just about the cost; it’s about dignity. Why do they send things to us and we still need to pay them to send it back?

“The senders responsible for it should pay the fine for importing illegal waste until they have collected back their waste,” she told reporters after officiating the eighth edition of the Penang International Green Conference and Exhibition (PGIGCE) 2019 together with Chief Minister Chow Kon Yeow here Saturday (Sept 28).

She said representatives from the United Kingdom arrived in Penang a few days ago to identify the owners of 42 out of 265 40-foot containers filled with plastic waste found abandoned at the North Butterworth Container Terminal (NBCT) since January this year.

“Identifying the senders is not an issue, but the procedure itself would take some time,” she said.

On another subject, Yeo said the federal government would provide any necessary support for the Penang government in mitigating rising sea levels due to climate change.

She said the state government already has plans for making Penang a climate-resilient state.

“As the federal government, we fully support whatever planning that comes with climate resilience or carbon reduction, one way or another,” she said.

Earlier, in her opening speech, Yeo announced that the federal government has provided incentives to Penang to catalyse the use of renewable energy in Malaysia and attract more students pursuing Science, Technology, Engineering and Mathematics (STEM) education.

The incentives include rolling out four sets of solar panels installed in three schools in the state and one entity of choice by the Seberang Perai City Council (MBSP), as well as an allocation of RM500,000 to Tech Dome Penang to offer free admission to students.

With the theme “Penang Green and Smart City”, the three-day event featured 70 exhibition booths, making it the largest PGIGCE yet. – Bernama
Read more at https://www.thestar.com.my/news/nation/2019/09/28/malaysia-will-not-pay-to-return-illegally-imported-waste-says-yeo#JbeMjArELVSS8dd4.99

Others

Vietnam to promote use of LNG in power industry

28 September 2019

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Vietnam

HÀ NỘI (Vietnam News/ANN) -The Vietnamese Government and Ministry of Industry and Trade planned to create favourable conditions for Japanese enterprises to research, survey and deploy liquefied natural gas (LNG) projects in Vietnam as it attempted to develop its use in the power production industry.

The statement was issued by Minister Trần Tuấn Anh during a meeting with Japanese Minister of Economy, Trade and Industry Isshu Sugawara in Tokyo on Thursday.

Anh asked Japan to continue supporting Vietnam to promote the development of gas, thermal and power projects, with the necessary regulations and policies to expand LNG ports and train staff in the field.

Sugawara said Japan would increase its budget to support training human resources for Vietnam in the near future.

Regarding international economic integration, the two ministers emphasised the need to promote multilateral trade negotiations in the region such as the Regional Comprehensive Economic Partnership (RCEP).

Sugawara said he highly appreciated Vietnam’s development in recent years and believed the RCEP agreement would be completed on time.

The meeting was held after Anh attended the LNG Producer-Consumers Conference 2019 in Tokyo on Thursday, which attracted policymakers, researchers and representatives from 14 LNG production countries and 12 LNG consumption countries.

At the conference, Anh said the development of LNG was an indispensable trend to diversify fuel sources, contributing to the country’s energy security.

Vietnam’s energy exploitation is mainly based on traditional resources such as hydroelectricity, coal, oil and gas, and hydroelectricity has almost been fully exploited. The Vietnamese Government has established policies to increase the use of renewable energy for economic development.

In the development plan for Vietnam’s gas industry, the demand for LNG will increase to about five million tonnes by 2025, about 10 million tonnes by 2030 and 15 million tonnes by 2035.

“To accomplish this goal, Vietnam has developed LNG import warehouses and ports. It has also built and issued a legal framework for the development of Vietnam’s LNG industry, and set up priority projects based on LNG demand and investment promotion,” Anh said.

The conference, a global annual dialogue launched in 2012, provides participants with a venue to share the latest trends in the global LNG market and discuss opportunities and challenges. — VNS

Electricity/Power Grid

Power Development Master Plan 8 focuses on renewable energy

28 September 2019

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Vietnam

Nguyễn Mạnh Cường, an official from the Institute of Energy’s Department of Electrical System Development under the Ministry of Industry and Trade, spoke with Vietnam News Agency about the implementation of the national power development master plan in 2021-2030 (or Power Development Master Plan 8).

Prime Minister Nguyễn Xuân Phúc has assigned the Ministry of Industry and Trade to formulate the master plan for energy and power development in the 2021-2030 period. Could you tell us about the implementation of the draft scheme on the master plan?

The Government has approved the scheme for power development master plan 8, which was submitted by the ministry. The ministry is still awaiting the official decision signed by the Government.

The deadline for completing the power development master plan 8 is June 2020. Thus, the ministry has actively implemented this issue.

The construction of power development master plan 8 is complex. The ministry must calculate the power load forecasting, as well as collect the socio-economic data and economic growth forecasts from the Ministry of Planning and Investment.

Based on that, the ministry will calculate the power source, including wind power, coal power, and renewable energy and its development to suit the national economy.

Are there any differences between power development master plan 8 and master plans of previous years?

The power development master plan will be different from previous versions. Master plans 6 and 7, including the amended one, still rely heavily on traditional power sources such as hydropower, thermal power, and gas turbines. The master plan 8 will be the electricity plan of the renewable energy era.

Solar and wind power are largely determined by the weather. At the same time, we must ensure that there is no interruption in supplying electricity. As a result, the power development master plan 8 will be different.

Normally, there are 1,780 hours of sunlight a year, so we are building a mechanism to use technology to make it more effective.

How will the power development master plan 8 attract investment in the construction of power sources and power grids?

In master plan 8, we will include the assumption that future investment costs of different types of energy will reduce. Based on that, we will calculate the amount of investment.

Regarding investment attraction, the power grid will apply the Electricity Law while the transmission grid will belong to the transmission company.

A mechanism is needed to attract investment.

We will calculate the total capacity of the country’s power production from all resources. Businesses will base investment decisions on that.

We will have a chapter of the master plan to introduce policies on capital, bidding, and transmission grids for power projects.

Hopefully, the first draft will be introduced in June 2020.

Currently, hydro-electric sources have been overexploited and coal and gas thermal power have faced difficulties in the supply of fossil fuels. In your opinion, what is the electricity supply in master plan 8? Is nuclear power included?

In terms of electricity supply, we can import electricity from Laos and the South of China. These are significant sources of supply for Việt Nam.

In terms of renewable energy, the industrial development policy is quite important. We need to develop the industry using less electricity but generating more gross domestic product (GDP).

Currently, we are focusing on heavy industry such as steel and cement. Most of the solar power plants do not have the capacity to power large industries.

The percentage of renewable energy in the total electricity structure that the ministry is studying is 10, 20, 50 and even 80 in the future. The specific ratio is still being calculated by the Energy Institute.

The ratio will be announced in the first draft of the master plan in June 2020. Opinions from experts will be collected.

In terms of nuclear power, this is a stable source with large capacity and affordable cost. However, there are still many concerns about safety and pollution. We will consider this kind of source.

The power development master plan will promote the development of renewable energy as it protects the environment and has become cheaper in investment costs. — VNS

Read more at http://vietnamnews.vn/economy/536105/power-development-master-plan-8-focuses-on-renewable-energy.html#4DOwbEc38VJAZtpk.99

Others

Ministry seeks for 30% reduction in manufacturing waste

27 September 2019

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Indonesia

Jakarta (ANTARA) – The Indonesian government is scheduled to issue a Ministerial Decree that requires manufacturers of goods to reduce production waste to a minimum 30 percent in a 10-year period, a Ministry of Environment’s Director has said.

“In 10 years’ time, they are required to reduce their product waste or packaging. There is a minimum of 30 percent reduction in our draft,” Director of Waste Management from the Ministry of Environment and Forestry, Novrizal Tahar said in Jakarta, Friday. This regulation will compel producers to reduce waste, as at the moment, such reduction measures are optional for each company, Tahar said.

The ministerial regulation has been discussed and is likely to be completed in the near future, although he was yet to confirm whether it would be issued this year, he further said.

Ways to reduce waste can be implemented by changing product shape design to easing the recycling process and such a step could build a take-back system, he added.

“There are three categories that will be regulated. These are large manufacturers; food and beverage producers, as well as hotels and restaurants, and retail, shopping centers and markets,” he stated.

The roadmap for the reduction of production waste is derived from the Presidential Law number 81 of 2012 concerning Waste Management.

The annual weight of landfills in Indonesia has reached 65.2 million tons in 2016, according to the Central Statistics Agency (BPS)’s data, gathered from the KHLK and the Ministry of Industry.

Renewables

Burmese refugees to benefit from solar project

27 September 2019

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Thailand

Energy management and supply company Kinect Energy Group has announced funding for a renewable energy project designed to transform the lives of hundreds of Burmese refugees living on a landfill site in Thailand.

The refugee community centre known as the Green Island, based in Mae Sot, Thailand, is situated in the centre of a landfill site where approximately 500 refugee families are settled. The Green Island offers underprivileged communities access to education and sporting facilities however, unstable and inadequate access to electricity has forced the local community to rely on natural light, restricting access to the Island.

Partnering with PlayOnside, Kinect Energy Group has agreed to fund the installation of solar panels to provide around-the clock power to the Green Island project. The panels are set to be installed in the fourth quarter of 2019 and will provide refugees with access to a sustainable electricity supply that is 100 per cent renewable, meaning grid energy in the area will not be impacted.

Sustainable electricity to the Green Island will provide children with unlimited access to education opportunities within the community centre, freshly prepared food and a safe environment to socialize and make friends through the football tournaments organised by PlayOnside.

Power will also be supplied to streetlights surrounding the Green Island, increasing safety and visibility at night. The solar panels will be installed by Htoot Htoot, who has been helping communities along the Thai/ Burmese border gain access to renewable energy and sustainable water filtration for seven years.

In remote locations such as Mae Sot, the harsh terrain and lack of a road network makes solar power the most appropriate and effective method of providing energy. Kinect Energy has been supporting and funding renewable energy projects in remote, off-grid areas for several years, through its renewable energy sourcing platform Track my Electricity. The platform enables businesses to reduce their organisational footprint by sourcing 100% renewable energy, and supports vulnerable communities in combating energy poverty in developing countries.

The Green Island was created by not-for-profit organization PlayOnside in February 2019, unite Mae Sot’s ethnically, culturally and socially diverse communities through participation in football festivals and integration tournaments. Children are given an opportunity to play and form friendships regardless of their background.

Anette Gussias, head of sustainability EMEA at Kinect Energy, commented: “As a global business, we are committed to playing our part in eliminating energy poverty and helping to improve the lives of those living in developing countries or fleeing areas of conflict, which is why we were keen to support PlayOnside and its Green Island project.

“Having access to electricity is something that we often take for granted, but for these communities it is life-changing and allows them to create brighter futures for their children and subsequent generations. Solar energy is the most effective and dependable method for off-grid areas such as in Mae Sot, enabling communities to benefit from a safer and a more modern way of living.”

Renewables

Air pollutants can reduce generation of solar energy

27 September 2019

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Malaysia

HAZE occurs when dust and smoke particles accumulate in the air. When weather conditions block the dispersal of smoke and pollutants, they concentrate and form a low-hanging shroud that impairs visibility and may become a respiratory health threat.

Since 1991, haze has been an acute problem in Southeast Asia because Indonesian forests are burned to clear land and the smoke is blown by the wind to neighbouring countries.

Energy losses caused by air pollution on solar panels are widespread and the situation in each area is different.

This is according to our recent study published in the Journal of Plos One titled “Evaluation of the 2013 Southeast Asian Haze on Solar Generation Performance”.

This study aims to define the effect of the 2013 Southeast Asia haze pollution on solar generation from June 1 to June 30, 2013.

Two types of photovoltaic (PV, a method of generating electric power) solar arrays, namely two units of a 1kWp (kilowatt peak) Tracking Flat Photovoltaic (TFP) and two units of a 1kWp Fixed Flat Photovoltaic arrays (FFP), were used.

A solar array is a collection of multiple solar panels that generate electricity as a system. The performance of solar arrays was evaluated by using environmental data (irradiation, temperature, dust thickness and air pollutant index), power output and energy yield. A practical approach is proposed to compare the power output and energy yield from both arrays. Data analysis was conducted on 2,190 samples at 30-minute intervals from June 1, 2013, when both arrays were washed, until June 30, 2013.

The operations of the TFP and FFP arrays installed at Universiti Putra Malaysia before, during and after the haze were monitored to determine the behaviour of both systems.

The results indicated that the effect on PV generation was strongly dependent on the haze pollution and it showed that power generation was reduced because of pollution during haze conditions to about 30 per cent.

This result was obtained after analysing more than one dataset per month and after different environmental elements were applied to the same PV plates. Also, due to pollution during the 30-day period, the average generation of FFP arrays was around 58watt less than the TFP arrays.

ASSOCIATE PROFESSOR DR HASHIM HIZAM; MOHAMMAD REZA MAGHAMI

Department of Electrical Engineering, Faculty of Engineering, University Putra Malaysia

Others

Singapore welcomes Malaysia’s efforts on transboundary haze legislation

27 September 2019

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Malaysia ,
Singapore

SINGAPORE (Sept 27): Singapore is pleased that Malaysia is considering of having a legislation akin to the republic’s Transboundary Haze Pollution Act (THPA) which was passed in 2014.

“I am pleased that Malaysia is considering similar legislation,” said Singapore’s Minister for the Environment and Water Resources, Masagos Zulkifli in his Facebook posting on Thursday evening.

It was reported on Sept 24 that Malaysia will be preparing a cabinet paper on the need to create a Transboundary Pollution Act in three months.

Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin said the cabinet paper among others would contain the direction and policy of the act.

“The act if approved will include haze and other pollution so that the government can take action against Malaysian companies or citizens who commit such offences in other countries but resulted in pollution to our country,” Yeo reportedly said.

Meanwhile, in the same posting, Masagos also noted that Singapore is supportive of the Indonesian government’s continuing efforts to suppress the forest and land fires.

“I am also glad that the Indonesian Ministry of the Environment and Forestry is stepping up efforts to pursue action against companies that are culpable for the fires, and subjecting them to the full extent of the law, and pursuing the necessary evidence to do so.

“This is the spirit and intent of Singapore’s THPA … The THPA is not meant to undermine the sovereignty of any country and is in line with international law,” he said.

Masagos added that the THPA complements national efforts, such as those by Indonesia, to hold the responsible parties accountable.

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