News Clipping

Browse the latest AEDS news in this page
Showing 8489 to 8496 of 10558
  • Others
23 September 2019

 – 

  • Malaysia

KUALA LUMPUR: The government may turn to digital solutions to help convert cities here into smart cities – which is among the main thrusts of the 12th Malaysia Plan (2021-2025), said Prime Minister Tun Dr Mahathir Mohamad.

“We envision smart cities that are integrated with sustainable technologies such as 5G connectivity, cashless communities, autonomous public transport, drone delivery, energy-efficient buildings, and the smart treatment of water and waste management.

“This will not only improve public safety but also the people’s quality of life,” he said in his speech that was recorded and played during the opening of Cities 4.0: The Launch of Malaysia’s Smart Cities Framework here today.

Housing and Local Government Minister Zuraida Kamaruddin was also present.

Dr Mahathir said the government wanted to develop a functional, resilient and efficient mobility system for the prosperity and wellbeing of the people.

Although the smart city concept has existed for nearly 30 years, he noted that the key issue hindering the development of smart cities in the country was because many smart city players worked in silos.

“In this context, the Housing and Local Government Ministry has prepared the Malaysia Smart City Framework.

“This comprehensive framework comprises all three tiers of government, as well as private sector participation to streamline and coordinate smart cities development in Malaysia.

“This is also to ensure a more informed guidelines and decision making process by the government, which takes consideration of views from all relevant stakeholders,” said Dr Mahathir.

Among issues the government wanted to address with the implementation of the Smart City initiatives, he said, included public transportation, one of the major concerns among the people.

He said the government was fully supportive in laying the foundation to build smart cities.

This, he said, was reflected in the government’s recent launching of the Kembara Digital Programme, where Malaysians are set to enjoy high quality and affordable digital connectivity.

“Leveraging on the National Fiberisation and Connectivity Plan, I aspire to see smart cities grow efficiently to become smart regions.”

  • Others
23 September 2019

 – 

  • Malaysia

[SINGAPORE] Malaysian energy storage services provider Dialog Group is expanding its Pengerang oil storage facility in the southern peninsular state of Johor, as it seeks to tap growth in oil, gas and petrochemicals trade around the Malacca Straits.

Dialog will break ground on a project this week, which will be the third phase of development at Pengerang, to build oil products storage tanks that will be ready by mid-2021, Executive Deputy Chairman Chan Yew Kai told Reuters in an interview.

An oil company has already committed to leasing the tanks that will store 430,000 cubic metres of clean products for several years, Mr Chan said, but declined to name the company.

Oil major BP has leased the tanks, trade sources said. BP could not immediately be reached for comment on the matter.

In the first two phases, Dialog built an oil products storage terminal, two liquefied natural gas (LNG) tanks and an industrial terminal, solely for the use by adjacent Pengerang Refining and Petrochemical (PrefChem).

PrefChem, equally owned by Petronas and Saudi Aramco, houses a 300,000-barrel-per-day refinery and 1.2-million-tonne-per-year steam cracker.

Dialog plans to connect facilities across all three phases via an oil products pipeline to facilitate trade among clients storing fuel in Pengerang, Chan said.

“They can buy products if they are short and do fuel blending to their own requirements,” Mr Chan said. “This is going to facilitate a lot of trading activities.”

Dialog seeks to attract more companies to build plants to produce intermediate petrochemicals and specialty chemicals using raw materials from PrefChem, Mr Chan said.

“We are inviting petrochemical companies to come in partnership with us to build, own and operate (the tanks). So, facilities are there for petchem plants, we provide tankage facilities and also the port,” Chan said.

The company is using only a part of the 600-acre land for the phase-3 development and there is still land in the first two phases for further expansion, he added.

For example, the company has received interest from traders to build a third LNG tank, he added.

“With Henry Hub (gas) prices at around US$2, it makes it conducive to traders to buy, sell and break bulk, so there is a lot of interest by traders to talk to us to take up storage space for long term,” he added.

Separately, Dialog is conducting a feasibility study for building storage facilities for liquefied petroleum gas (LPG).

“The LPG demand is for cooking gas and industrial use in Malaysia and I believe there’s a shortage, so they are looking at bringing LPG into Malaysia and if it’s into Johor, it’s an ideal place for transhipment,” he said.

Johor Petroleum Development Corp manages the Pengerang Industrial Development complex that spans over 20,000 acres and is earmarked by Malaysia to be developed into an energy hub aimed at rivalling neighbouring Singapore’s Jurong Island, Asia’s main oil centre.

PrefChem has taken up just under a third of the land, and for the remaining, Dialog is working with the Johor state to invite companies to build refineries or petrochemical plants, Mr Chan said.

Companies from the Asia Pacific region, including from China, are in talks with Dialog to conduct feasibility studies for such projects, he said.

  • Renewables
23 September 2019

 – 

  • Vietnam

HANOI, Sept 25 (Reuters) – Vietnam’s state-run utility EVN will borrow up to 6.45 trillion dong ($278 million) to expand a hydroelectric plant near Hanoi, the government said on Wednesday, as the Southeast Asian country grapples with a looming shortfall in its power supply.

The expansion of the 25-year-old Hoa Binh plant, by 480 megawatts to 2,400 megawatts, is scheduled to begin in the fourth quarter of 2020 and be completed by 2023, the government said in a statement on its website.

In July Vietnam’s Ministry of Industry and Trade said the country faced the prospect of severe power shortages from 2021 as electricity demand outpaces the construction of new plants.

The government didn’t disclose details of how EVN, formally known as Vietnam Electricity Group, would secure the funds.

Last week, Fitch Ratings affirmed EVN’s long term foreign-currency issuer default rating at ‘BB’ with a positive outlook. ($1 = 23,200 dong) (Reporting by Khanh Vu Editing by Kenneth Maxwell)

  • Bioenergy
23 September 2019

 – 

  • Vietnam

KUALA LUMPUR (Sept 23): Pestech International Bhd is exploring the possibility of participating in waste-to-energy (WTE) development projects in Cu Chi, Vietnam.

In a bourse filing, the group said its wholly-owned subsidiary Pestech Power Sdn Bhd (PPW) has signed a memorandum of understanding (MoU) with TASCO Cu Chi Environmental Ltd (TCC).

“The company believes that the collaboration with TCC will enable PPW to spearhead into the WTE/renewable energy sector, with technical support from PPW’s European technology partner, in the pursuit for opportunities under the collaboration in this region,” it added.

Pestech said the parties are keen to engage PPW’s Finnish technology partner for the project, to ensure the highest compliance towards the mission standard.

If due diligence processes for the MoU result in positive news, PPW will acquire a 40% stake in TCC, for no more than US$3 million. PPW will then share TCC with WeSaigon Co Ltd, which will maintain a 60% stake.

WeSaigon will be in charge of ensuring a continuous supply of waste supply, as well as obtaining relevant licensing approvals for the projects in Cu Chi.

PPW will lead and undertake electrification and automation works, creating a transmission line and conducting substation works, apart from the operation and maintenance services required for the energy project.

Both PPW and TCC are looking to implement a two million-watt alternating current (2MW AC) photovoltaic solar plant at the project site, to establish a hybrid system for more effective and efficient energy deployment.

Pestech International’s share price closed three sen or 2.48% lower to RM1.18 today, giving it a market capitalisation of RM901.87 million.

  • Renewables
23 September 2019

 – 

  • ASEAN

As the world’s population continues to expand, our hunger for energy shows no signs of slowing. But it has become clear to (almost) everyone that the sources of that energy must change if we are to avoid the catastrophic impact of climate change in the next few decades.

Carbon dioxide (CO2) emissions from energy production, a key contributor to global warming, are still rising despite many efforts to promote greener habits. But with the world population forecast to exceed 9 billion by 2040, up from 7.7 billion today, energy demand growth of more than 25% is expected, according to World Energy Outlook 2018 by the International Energy Agency (IEA). That will require over US$2 trillion a year of investment in new energy supply.

This could jeopardise efforts to meet the Paris Accord goal to keep the temperature rise in this century below 2 degrees Celsius above pre-industrial levels.

More money is pouring into renewable sources that emit less CO2 than conventional sources. Still, there are challenges in integrating renewables into power generation systems that still rely heavily on fossil fuels.

Global investments in renewable energy capacity reached $272.9 billion in 2018 — the fifth successive year they exceeded $250 billion, according to Global Trends in Renewable Energy Investment 2019 by the UN Environment Programme (UNEP) and Bloomberg New Energy Finance.

The figures show that investment in renewable sources is outstripping that in new fossil fuel generation. Still, “we cannot afford to be complacent”, Inger Andersen, the UNEP executive director, is quoted as saying in the report.

“Global power sector emissions have risen about 10% over [the last decade],” she said. “It is clear that we need to rapidly step up the pace of the global switch to renewables if we are to meet international climate and development goals.”

Energy-related carbon dioxide emissions globally rose 1.7% to a historic high of 33.1 gigatonnes (Gt) last year, according to the IEA. The increase was the highest since 2013, and 70% higher than the average growth since 2010.

In addition to higher energy consumption resulting from a robust global economy, changing weather conditions in some parts of the world also led to rising energy demand for heating and cooling.

As a result, emissions from all fossil fuels have surged with the power sector accounting for nearly two-thirds of such growth. Coal use for electricity alone surpassed 10 Gt of CO2, mostly in Asia. Large and populous economies including China, India and the US accounted for 85% of the net increase in emissions.

The IEA said last year that CO2 emitted from burning coal was responsible for one-third of the 1C increase in global average annual surface temperatures above pre-industrial levels.

But while awareness of the urgency is high and the response from investors has been strong, it is still not enough, according to Svenja Schulze, Germany’s Federal Minister for the Environment, Nature Conservation and Nuclear Safety.

“We know that renewables make sense for the climate and for the economy. Yet we are not investing nearly enough to decarbonise power production, transport and heat in time to limit global warming to 2C or ideally 1.5C,” the UNEP report quoted her as saying.

Wind and solar accounted for only 4% of global electricity generating capacity in January 2010 when they were relatively expensive compared to fossil fuels. But a huge transformation has taken place since then as costs have plummeted. By the end the current decade, the two technologies are expected to account for 18% of global generating capacity. China accounted for over 40% of the growth in renewable-based electricity generation, followed by Europe at 25%. The US and India combined contributed another 13%.

In many countries, the cheapest source of new generating capacity in 2019 is either solar or wind. Since the second half of this year, the global levellised cost of electricity (LCOE) for solar has fallen by 81%. The decline is 46% for onshore wind and 44% for offshore wind. LCOE is a way to measure the real cost, including the timeline of the expenditure, that goes into the production of a kilowatt-hour.

Renewable generation capacity grew 4% in 2018, accounting for almost a quarter of global energy demand growth. Solar, hydropower and wind each accounted for about a third of the growth, with biomass accounting for most of the rest, according to the IEA.

The power sector is doing most of the legwork with renewables-based electricity generation rising 7% last year to almost 450 TWh (terawatt hours). Renewables made up almost 45% of all electricity generation growth and now account for 25% of global power output. They could reach 40% by 2040.

Natural gas is expected to remain a major contributor to meeting the energy needs of many countries. The Erawan natural gas field, operated by Chevron Thailand, is a major resource in the Gulf of Thailand. Chanika Suksomjit

THE TRANSITION

Across Southeast Asia, there are over 30 gigawatts of renewable energy installed, compared with less than 5 GW in 2017. But that is just a fraction of the total capacity of 240 GW. It will take a herculean effort to meet the target set out in the Asean Plan of Action for Energy Cooperation for renewables to have a 23% share of primary energy supply by 2025.

Somphote Ahunai, CEO of SET-listed Energy Absolute, said Asean is at a crossroads in its energy transition. But each of the 10 member states is moving toward renewables at a different pace.

“Thailand has a well-developed infrastructure so renewables is more of an add-on instrument to the system,” he told the Asean Energy Business Forum held in Bangkok earlier this month. “On the other hand, if you look at other countries such as Myanmar which still lack infrastructure, renewables can become a major player immediately.”

Olivier Duguet, founder and CEO of Blue Circle, a Singapore-based renewable energy player with wind projects in Vietnam, agreed, saying the energy transition in Asean is “very different” from the rest of the world. This is because nearly all countries here are already running on hydropower.

For example, Laos is planning to be the “renewable battery” of Asean, thanks to its exports of hydropower. Therefore, the energy transition will depend more on the new capacity to be installed.

Peerapat Vithayasrichareon, lead analyst for system integration of renewables at the IEA, said that when it comes to energy transition, there are three key factors: conversion from fossil fuels to renewables, reliability, and cost effectiveness.

“The transition should be technically viable and economically viable and this is context-specific based on the country and the resources that they have in each country,” he said, adding that sharing is the key.

In Europe, for example, energy infrastructure along many borders allows different countries to share resources in order to reduce the overall cost.

One of the challenges in energy transition, said Mr Duguet, is how to balance the grid with an energy mix of fossil fuels and renewables, as the latter can face shortfalls, especially hydropower.

“We have to educate the grid operator where hydro has a big swing in production between the dry and the wet season and this is a real issue that local utilities here are already facing,” he said. “Solar can only produce in the daytime and there is also the monsoon season, so you always need something to balance the other.”

Some European countries, such as Denmark, Ireland and the UK, can run on more renewables than fossil fuels even though they are not linked to the continental grid because renewables are linked directly to their national grids.

“This is possible because renewables are fully integrated into their national or regional grids which we don’t have here [in Asean] and we need education, which is a long, long road from now,” said Mr Duguet.

Chris Galpin, senior policy adviser at the UK Department for Business, Energy and Industrial Strategy, said renewables are inherently location-dependent, such as when the wind is blowing in one part of Europe, it is often not blowing in another part of the continent.

“But those challenges are all manageable with available technology that can deal with them, so it is a question of trying to deliver those technologies at low cost,” he added.

Mr Peerapat said some existing thermal power plants in Asean could be modified to make them more flexible to meet the increased variability that comes with renewables.

Pumped-storage hydropower (PSH) might be useful. Pumped storage projects store and generate energy by moving water between two reservoirs at different elevations. At times of low electricity demand, excess energy from coal and nuclear, or renewables such as solar, can be used to pump water to an upper reservoir.

During periods of high electricity demand, the stored water can then be released through turbines, flowing downhill from the upper reservoir and generating electricity. The turbine is then able to also act as a pump, moving water back uphill.

“Three years ago when we started on grid integration in Thailand, the word flexibility was not very familiar for everyone,” said Mr Peerapat. “So we introduced it because flexibility is the key approach that we need to consider, and it has already been considered in the nation’s power development plan.”

GASSING THE FUTURE

Energy producers argue that if we do not want shortages of electricity and energy prices to skyrocket, fossil fuels are still needed, led by natural gas, especially in the countries that are producing them.

According to Alun Yogi Lau, a member of the Group of Experts on Natural Gas at the UN Economic Commission for Europe, the energy source is the cleanest in terms of fossil fuels, because it has much less CO2.

“Of course, oil will always be there but the investment right now is mainly in gas,” he told Asia Focus on the sidelines of the Asean Energy Business Forum.

According to the Gas 2018 report by the IEA, the future for gas looks bright for the next five years at least thanks to a strong demand from China, greater industrial demand, and rising supplies from the US. It forecast that global gas demand will grow at an average rate of 1.6% a year, reaching just over 4,100 billion cubic metres (bcm) in 2023, up from 3,740 bcm in 2017.

The IEA also noted that natural gas is the cleanest-burning hydrocarbon as it emits between 45% and 55% lower greenhouse gas emissions than coal when used to generate electricity. Shell, one of the largest developers of natural gas, argued on its website that renewables “cannot provide all the world’s energy needs today”.

Shell notes that that renewables are used mainly to produce electricity, which meets only 18% of all global energy demand. For renewables to have a bigger impact, it says, electricity must play a larger role in other key sectors of the economy.

Irtiza Sayyed, the president of ExxonMobil LNG Market Development, told participants at the forum that natural gas is projected to supply about a quarter of the energy for industries and electricity generation in 2040.

“It is estimated that Asean needs approximately $540 billion in power sector investment by 2030, just to keep up with electricity demand … and today, oil and natural gas meet more than half of world energy needs,” he added.

Without saying that renewables are more expansive, he also argued that if energy became too costly, the global economy will suffer, harming not only those trying to escape poverty in developing nations, but also businesses and individuals in other economies.

Nevertheless, renewable energy costs are now at the point where almost every source can compete with power plants based on coal, oil or gas, according to the latest Renewable Power Generation Costs report by the Abu Dhabi-based International Renewable Energy Agency (Irena) in May.

For example, hydroelectric power is the cheapest source of renewable energy, at a global average of $0.05 per kilowatt hour (kWh). The average cost of developing new power plants based on onshore wind, solar, biomass or geothermal energy is now usually below $0.10/kWh.

The cost of developing new power plants based on fossil fuels normally ranges from $0.05 to over $0.15 per kWh. Therefore, a greener future for energy might not be that far away after all.

  • Electricity/Power Grid
23 September 2019

 – 

  • Cambodia
  • Lao PDR

The critical 2,400 MW energy deal signed earlier this month by Electricité du Cambodge (EDC) and two independent power providers in Laos was made possible through facilitation by international law firm Reed Smith.

For in depth analysis of Cambodian Business, visit Capital Cambodia
.

The recent signing of landmark agreements between EDC and two power providers in Laos PDR – Xekong Thermal Power Plant Company Limited and TSBP Sekong Power and Mineral Company Limited – took place with the support of Singapore-based Energy and Natural Resources partners Kohe Hasan and Bree Miechel, granting the Kingdom an energy deal lasting 30 years with power transfers commencing in 2024.

Neither Hasan nor Miechel are strangers to the Cambodian energy landscape and both carry with them a wealth of experience, highlighting EDC’s commitment to cooperating with expert international consultants.

Hasan, a partner at Reed Smith, acted on behalf of a Cambodian group in a joint venture dispute regarding a 270 MW power plant in the Kingdom, but this latest deal dwarfs her previous project here.

“We were delighted to be involved in such a milestone transaction which will have a meaningful impact on the lives of the people of Cambodia,” she said.

At a rate of 7.7 cents per kilowatt hour, 300 MW will be purchased in 2024, rising to 600 MW in 2025 and 2026, and 900 MW in 2027, according to Victor Jona, director-general of energy, who noted the rapid growth in demand across the Kingdom ranging from 17 to 20 percent each year.

Data provided by the Ministry of Mines and Energy showed that Cambodia consumed 2,650 MW in 2018, as such the landmark deal secured by Reed Smith should go a long way toward guaranteeing energy security in the Kingdom, as well as strengthening ties with neighbouring Laos.

Keo Rattanak, Minister attached to the Prime Minister and Managing Director of EDC commended the signing of the deal and the significance of the work that went into it.

“It was a privilege working with the Reed Smith team. They are extremely driven, highly professional and were able to deliver under very tight timelines. Kohe knows the Cambodian market well and that helps with the smooth progress of the transaction,” he said.

  • Oil & Gas
23 September 2019

 – 

  • Indonesia

JAKARTA, Sept 23 (Reuters) – Indonesia’s state oil and gas company PT Pertamina said on Monday it had stopped an underwater leak from an oil well off West Java over the weekend after more than two months of spillages.

The company aims to permanently plug the leak next week, but the clean-up effort for beaches nearby is expected to last until at least March next year.

The spill, from the YYA-1 well in Pertamina’s Offshore North West Java (ONWJ) block, started on July 12 and was declared an emergency three days later. An environmental group said the spill has affected at least 13 villages, threatening the livelihoods and health of thousands of people.

On Monday, Dharmawan Samsu, Pertamina’s upstream director, told reporters that Pertamina had connected a relief well, which should contain the leak, and aimed to permanently plug the leaking well by Oct. 1.

“With this completion, we can soon focus on recovery efforts for the affected area,” he said. “We will renovate public infrastructure and clean the environment to restore the ecosystem.”

More than 42,000 barrels of oil have been recovered offshore since the spill, Taufik Adityawarman, a Pertamina official said, as well as 5.7 million bags of mixed sand and oil from beaches.

Pertamina has promised to compensate residents affected by the spill, mostly fishermen from villages near the well. Adityawarman said so far only 30% of the compensation money has been distributed.

The company has estimated output from the ONWJ block this year of 29,000-30,000 barrels of oil per day and 110 million standard cubic feet of natural gas per day. (Reporting by Wilda Asmarini; Writing by Fransiska Nangoy; Editing by Alex Richardson)

  • Coal
23 September 2019

 – 

  • Indonesia

COAL producer Geo Energy Resources has acquired a majority stake in two South Sumatra coal mines for US$25 million.

It will buy PT Titan Global Energy (TGE) from PT Titan Infra Energy (TIE) and its affiliate, PT Jaya Utama Indonesia (JUI), giving Geo Energy a 51 per cent stake in producing coal mines PT Bara Anugrah Sejahtera (BAS) and PT Banjarsari Pribumi (BP).

TIE was established in Indonesia in 2004 and is a vertical energy infrastructure and logistic companies with primary operations in South Sumatra, Indonesia.

Mainboard-listed Geo Energy will pay for the deal with its existing cash – US$2.5 million for a refundable deposit payable upon execution of the purchase agreement, and US$22.5 million once the deal is completed.

The deal must be completed by its long-stop date of Dec 31, 2019.

Both mines have been in production since 2012, and produced a total of 3.8 million tonnes of coal in 2018.

After completing the acquisition, Geo Energy wants to increase total production to five million to seven million tonnes a year.

The average strip ratio for both mines is estimated at a maximum seven times. The ratio refers to the volume of waste material required to be handled in order to extract a tonne of ore, with a lower ratio usually signalling better profitability.

BAS and BP have a contract with TIE to supply coal to PT Perusahaan Listrik Negara, a state-owned electricity company, to fulfil a 25 per cent domestic market obligation (DMO) requirement from an approved annual coal production plan.

BAS and BP’s DMO sales for the financial half year ended June 30, 2019 was 1.8 million tonnes.

Based on the proforma financial effects of the proposed purchase, Geo Energy said it expects to account a bargain purchase to its earnings.

The adjusted average cost of sales on the BAS and BP coal for H1 2019 was US$32.50 to US$33.60 per tonne against the current average of the Indonesian Coal Price Index for 5000 and 4200 GAR coal of US$39.43 per tonne on Sept 20, 2019.

Geo Energy said it expects the proposed acquisition to be positive and value accretive to the group.

The deal will increase its total proven coal reserves from 78 million tonnes to about 122 million tonnes as at June 30, 2019.

Coal prices have continued to show resilience, trading at a range of US$30.20 to US$40.40 per tonne between Jan 4, 2019 to Sept 20, 2019 for Indonesia’s Coal Price Index, said the company.

South Sumatra has abundant coal and is located in close proximity to key export markets such as India, China and South-east Asian countries, including Indonesian domestic markets, it added.

According to Indonesia’s Ministry of Energy and Mineral Resources, South Sumatra holds over 39 per cent of Indonesia’s
coal reserves but accounts for less than 10 per cent of the country’s coal production in 2018.

Compared to Kalimantan coal, South Sumatra coal offers estimated freight and barging cost savings of US$5-10 per
tonne to supply coal to power plants in West Java and Sumatra due to shorter hauling and shipping distance from the mine to the buyers’ destination, said the company.

“The proposed acquisition is in line with the company’s business strategy to expand its business operations and increase its coal reserves and production levels,” said Charles Melati, executive chairman of Geo Energy.

“Since the issuance of our US$300 million senior note in 2017, we have been actively looking an earnings accretive and in-production coal asset with ready infrastructure, right price and conditions.”

The firm had at the end of August submitted a revised non-binding proposal to acquire new coal assets for a producing coal mine in East Kalimantan, Indonesia.

Geo Energy shares closed flat at S$0.148 on Friday.

User Dashboard

Back To ACE