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  • Oil & Gas
18 July 2019

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  • Myanmar

After signing various partnerships, the energy firm will roll out a network of 70 stations and build fuel depots in the country.

Thai energy company PTT Oil and Retail Business (PTTOR) has made official its entry into the Myanmar market by announcing the opening of stations and the construction of fuel depots.

PTTOR will open its first gas station in Myanmar by the end of year and will build tank depots for oil and LPG as well as other fuelling facilities, according to Attapol Rerkpiboom, Chairman of PTTOR.

The company recently signed agreements with the subsidiaries of Kanbawza KBZ Group of Companies Ltd, Brighter Energy Co Ltd and Brighter Energy Retail Co Ltd, to invest in the two projects, reports The Nation.

“The oil tank depot will have a total capacity of 1 million barrels of oil and 4,500 metric tonnes of LPG,” explained Rerkpiboom.

A second part of the project will be the roll out of PTT gas stations and Cafe Amazon outlets in Thailand. They plan to run a minimum of 70 gas stations in Myanmar by 2023.

Currently, the company has a total of 2,800 Cafe Amazon outlets in Thailand, Myanmar, Cambodia, Laos, Philippines, Japan, Singapore, and Oman.

  • Others
18 July 2019

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  • Malaysia

THE electrification of commercial vehicles could prove the building block to facilitate greater electric vehicle (EV) adoption in Malaysia, while providing massive upside potential for Tenaga Nasional Bhd (TNB).

Its chief strategy and regulatory officer Datuk Fazlur Rahman Zainuddin (picture) said the transportation sector makes up approximately 42% of total energy consumption in the country, but less than 1% of that energy is sourced from electricity.

He said there is “huge upside” in the transportation space for electrification. “When you start to look at the opportunities within each of the sectors, and look at the rate of the electrification and compare it to that of some developed nations, we can see that there is a huge opportunity for electrification (in terms of transportation),” he said at the World Economic Forum last week.

The forum, held in Kuala Lumpur, centred on the need for a sustainable and energy-efficient future for Malaysia and the world at large.

As Malaysia’s national and largest utility provider, TNB is tasked with aiding the transition into this new chapter for the country. But while EVs are an opportunity to facilitate this transition, there are significant hurdles facing the country.

“At this point, the population of EVs is not enough to really substantially address the energy transition,” Fazlur Rahman said.

He said the higher cost of EVs compared to vehicles using internal combustion engines, the availability of charging infrastructure and time required to charge an EV, are among the obstacles preventing EV take-up in Malaysia.

Under the National Electric Mobility Blueprint, Malaysia targets to ready 125,000 EV charging stations by 2030. This is against the approximately 400 stations available in September last year.

The electrification of commercial vehicles, covering public transportation and logistics, could prove the first step to greater EV adoption.

“When you talk about the cost of EV, rather than looking at it from the upfront cost or the first capital cost, we need to look at it from the total cost of ownership,” Fazlur Rahman said.

“EVs start to make sense when you start to talk about its operating cost compared to conventional vehicles,” he said, adding that the total cost of ownership of an EV is substantially lower than conventional vehicles due to lower funding, energy and maintenance expenses.

Taxis, buses and lorries, which operate round-the-clock, are among the beneficiaries of going electric. The older vehicles are also among the main contributor to pollution.

Achieving this transition, however, requires a concerted effort among all relevant industries and agencies as well as a cross-functional and cross-economic approach, he added.

For national oil and gas (O&G) company, Petroliam Nasional Bhd (Petronas), the approach to new energy will be measured as it does not foresee fossil fuels being immensely displaced over the next 20 years.

“As a commercial entity today, we are still strong advocates for gas for the reason that nothing in the data that we see shows that gas, or fossil fuels for that matter, will be hugely displaced in at least a 20-year horizon,” its president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said at the same forum.

He said that the financial returns from an investment in renewable or new energy is typically lower than conventional O&G, and that “being ahead of the curve” in this space will compromise Petronas’ financial returns.

Wan Zulkiflee said the five million EVs in the global market today displaced 50,000 barrels of crude oil production compared to the total production of approximately 100 million barrels of oil per day worldwide.

While Fazlur Rahman agrees that the EV market is currently not at a desirable scale, the transition into efficient and sustainable energy usage will be a catalyst for Malaysia to move towards a higher-technology, -skill and -value economy.

He said EVs convert about 60% of the energy consumed into power at the wheels compared to only 20% for internal combustion engines.

Of the RM117.4 million spent by TNB on research and development activities last year, 16% went towards renewable energy and environment.

  • Others
18 July 2019

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  • Vietnam

It is now the time of the year when Ho Chi Minh City has high humidity and the southwest monsoon.

It also means the time when people living in its southern districts like 7 and Nha Be are hit hardest by the terrible stink from Da Phuoc, the city’s major landfill in Binh Chanh District.

This has been their lot since 2016.

In the Phu My Hung urban area in District 7, residents say they have to keep their windows shut and air conditioners on all the time, but the solution “isn’t working anymore.”

A local named Nguyen Son said: “We have to smell it [the odor] all day and every day. Sometimes it’s strong and sometimes it’s weak, but it never goes away.”

A birds eye view of 

A bird’s eye view of the Da Phuoc landfill in Binh Chanh District, Ho Chi Minh City’s main garbage dump, in June 2018. Photo by VnExpress/Quynh Tran.

People in Phu My Hung and in its vicinity have even set up Facebook groups where they share stories on how they live with the foul smell and discuss possible solutions.

Thomas Clarke, an expat from the U.K., wrote in one of those groups on Sunday: “I have had extremely unpleasant smells coming into our flat from a southerly wind for quite some time. The smell is always so bad that I run to close the doors and windows. For example, today at 4 p.m. the smell flooded our flat before I could close the windows. I am also aware of this smell around our complex.”

Operated by Vietnam Waste Solutions (VWS), the Da Phuoc Integrated Waste Management Facility receives 5,700 tons of domestic waste, or more than two thirds of the city’s total, daily.

So far VWS has been dealing with a majority of garbage simply by burying it, and this has been blamed for the pervasive stink.

HCMC, Vietnam’s biggest city, seeks to become the pioneer in sorting trash at homeand rolled out a plan for it last year. All households have to separate organic and inorganic waste after 2020 or pay a fine.

Since last November local authorities have been guiding households and businesses on sorting their daily waste into organic, recycled and other trash by putting labels on bins.

Until 2020 districts and communes can try various methods to achieve the optimal sorting process.

Nguyen Thi Kim Men, a solid waste treatment expert at the city environment department, said the purpose of the sorting is to reduce the amount of trash going straight into landfills.

If the garbage is classified properly, organic waste could be used to make compost, inorganic waste could be recycled and the rest could either be burned to produce electricity or buried, she told the media.

But the city is only encouraging people now to sort their waste, with only District 1 in the downtown actually enforcing the regulation, she said.

Bui Trong Hieu, chairman of the HCMC Urban Environment Company Limited, said of the 8,700 tons of trash discarded daily, plastic accounts for 1,800 tons but a mere 200 tons, or 11 percent, are collected for recycling.

At a meeting in May Nguyen Toan Thang, director of the environment department, said the city also generates 1,500-2,000 tons of industrial waste, 1,200-1,600 tons of construction debris, 22 tons of medical waste, and more than 2,000 tons of sludge daily.

He sounded a dire warning: If it continues to bury its garbage and does not find other ways to treat it, it would run out of space for landfills by next year.

HCMC is not alone in grappling with this problem. It has Hanoi and Da Nang for company.

Da Nang protest

During the first weekend of July garbage was piling up on Da Nang’s streets as people living near Khanh Son, the only landfill in the central city, blocked entry to it after failing to persuade authorities not to turn it into a solid waste treatment complex.

A man covers his nose as he drives past piles of trash on a street of Da Nang during the protest in early July, 2019 that saw locals blocked roads to the citys sole landfill. Photo by VnExpress/Nguyen Dong

A man drives past piles of trash on a Da Nang street during a protest in early July that saw locals block roads to the city’s only landfill. Photo by VnExpress/Nguyen Dong.

The landfill in Lien Chieu District receives 1,100 tons of garbage daily from 1.2 million Da Nang residents, hospitals and industries, has become overloaded and poses a threat of pollution. In use for nearly three decades, it has so far taken in 3.2 million tons and can only remain in operation for an estimated 200 more days.

For years people living near it have been demanding that authorities should move it away from the residential area, and the latter had promised it would be done this year. But in May the city did a U-turn and sought a piece of military land next to the dump to upgrade the landfill into a waste-treatment complex where garbage will be incinerated.

To Van Hung, director of the city environment department, said moving the landfill is not a rational solution.

“If we choose to move it, what will happen to the existing 3.2 million tons of trash?

“Upgrading the landfill into a waste treatment complex using advanced technology will help solve the pollution problem and also treat all the trash.”

But the protestors are not buying it.

Nguyen Thi Thanh told authorities at a meeting on July 6: “If the city can make sure the new technology would not cause pollution, it means the waste complex can be put up anywhere in the city and not necessarily in Khanh Son. We’ve had more than enough for over 30 years.”

Ho Thi Hiep, another Da Nang resident, was skeptical about the waste-to-energy plan.

“We the public only ask for clean air for our children and grandchildren. It doesn’t make sense if our generation suffers the odor from the landfill and later generations suffer polluted air [from burning the trash],” said Hiep, who was under treatment but asked to be discharged temporarily from hospital just to attend the meeting.

Another local named Nha said many people in her neighborhood have thought of moving away but property prices in other parts of the city are too high and no one wants to buy houses near Khanh Son.

Despite their voices, the authorities stick to the plan to expand the landfill, and within two days got the police to clear the blockade and let garbage trucks into the landfill.

Hanoi too

In early July the capital, Hanoi, too saw protestors blocking roads leading to its Nam Son landfill.

These were people living near the landfill for two decades protesting against the failure to relocate them last year as promised and to announce compensation rates for their agricultural lands. Some were also protesting the fact they were to be moved just more than a kilometer from the landfill, and wanted to be relocated further away.

They set up barriers and tents around the waste complex, preventing garbage trucks from entering, causing rubbish to remain uncollected and pile up in many parts of the city.

Piles of garbage on a Hanoi street during a protest in early July when people blocked garbage trucks from entering Nam Son, the citys biggest landfill. Photo by VnExpress/Ngoc Thanh.

Piles of garbage on a Hanoi street during a protest in early July when people blocked garbage trucks from entering Nam Son, the city’s biggest landfill. Photo by VnExpress/Ngoc Thanh.

Six days later the city agreed to pay higher rates of compensation, and the protestors dispersed.

The plan to move 1,100 families living within 500 meters of Nam Son was announced last January at a cost of VND3.4 trillion ($147 million). It followed a similar blockade last year when protestors complained that the authorities had been slow to compensate and move out people suffering from the complex’s harmful environmental.

The Nam Son landfill, built in 1999, spreads over 157 hectares (390 acres) but more than half of it has been filled up with trash. It receives almost 5,000 tons of garbage a day, and will be able to take no more after December 2020, according to the Hanoi Urban Environment Company.

Hanoi generates 6,500 tons of solid domestic waste daily and 89 percent of it is buried, according to official data.

Late year, at a meeting with the construction department, Hoang Trung Hai, the city’s party chief, said he had become “impatient” with the delays in building waste treatment plants and the city “has no way back.”

A national headache 

Urban areas around Vietnam, home to a third of its population, discard 38,000 tons of domestic waste every day, more than half of the country’s total.

Nguyen Thuong Hien, head of the Vietnam Environment Administration’s waste management department, said: “70 percent of the trash is buried but many of the landfills do not meet environmental requirements, upsetting people living nearby.”

There is no solid waste treatment model in the country that meets all technical, economic, social, and environmental requirements, he said.

Burying a majority of the waste not only pollutes the environment but also means the country is unable to recycle garbage, he said.

Dang Hung Vo, a scientist and former deputy environment minister, said the fact that Vietnam buries 70 percent of its garbage poses a threat to its groundwater and wasteland.

He said the government should bring this rate down to below 20 percent.

According to a 2017 report titled Waste Management in ASEAN Countries by the United Nations Environment Program, Vietnam is in the same position as Thailand, Malaysia, Indonesia, Laos, and Brunei, which sort less than half their municipal solid waste, while Myanmar classifies half its garbage, the Philippines manages 50-70 percent and Singapore more than 70 percent.

While Vietnam buries a majority of its trash and turns some into compost, Singapore, Thailand, Indonesia, Malaysia, Myanmar burn their garbage to generate electricity.

All sorts of trash endup at a temporary landfill in Hanoi following a protest by people living near the Nam Son landfill in early July 2019. Photo by VnExpress/Ngoc Thanh.

All sorts of trash endup at a temporary landfill in Hanoi following a protest by people living near the Nam Son landfill in early July 2019. Photo by VnExpress/Ngoc Thanh.

Deputy Minister of Planning and Investment Dang Huy Dong said the key to handling garbage is technology.

Burying trash is only an option for large countries with a low population density, whereas Vietnam has 96 million people and high population density, especially in urban areas.

Meanwhile, burning trash, either to get rid of it or generate electricity is akin to using coal, a method the world is trying to eliminate because of its serious health impacts, he said.

“We are unable to sort solid waste at source, and so burning trash will create dioxin, and only the most advanced technologies can prevent that from happening.”

Dioxin is highly toxic and can cause reproductive and developmental problems, damage the immune system, interfere with hormones, and even cause cancer. Besides, the current burning methods cannot guarantee safety, he said.

He suggested Vietnam should choose gasification to deal with its trash since this technique generates carbon from which charcoal can be produced to fertilize farmlands.

One of the reasons for the failure to develop waste-treatment techniques in Vietnam is the absence of a transparent and competitive environment that attracts investment in research, he said.

Hien of the Vietnam Environment Administration said sophisticated waste treatment complexes cost a lot of money and most cities and provinces cannot afford them.

Hanoi and HCMC spend VND1.2-1.5 trillion ($52-65 million) a year, or around 3.5 percent of their budget, on collecting and treating waste.

But attracting private investment in waste treatment has proved very difficult due to the complicated procedures involved.

This is due a great deal to the fact that a single agency is not responsible for this, he said.

The Ministry of Natural Resources and Environment has responsibility for technical guidelines and management procedures in classifying, processing and getting electricity from garbage, but it is the Ministry of Construction that oversees investment in waste treatment facilities, cost management and valuation of waste treatment services.

  • Coal
17 July 2019

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  • Thailand

The Electricity Generating Authority of Thailand (Egat) is speeding up the process for a long-delayed coal-fired power plant in Chachoengsao province as newly appointed Energy Minister Sontirat Sontijirawong takes the ministry’s helm.

National Power Supply was granted an operating licence as an independent power producer (IPP) for a 540-megawatt coal-fired power plant 12 years ago, but the project was opposed by local communities.

NPS is wholly owned by a large pulp and paper maker, Advance Agro (AA).

AA won an auction in 2007. But after the licence was granted, a new constitution was approved in 2007 with a law mandating environmental and health impact assessments (EHIAs) before operations could begin.

Approvals of EHIAs by the Office of Natural Resources and Environmental Policy and Planning (Onep) have sometimes taken more than a decade, and there is still no clarity on when AA will receive approval.

Patana Sangsriroujana, Egat’s deputy governor for policy and planning, said Egat is planning to resume and sign a power purchase agreement (PPA) with NPS.

Having received their IPP licences in the same period, other winning peers Gulf Energy Development and Glow Energy have been operating for several years.

NPS also asked the Energy Ministry to consider the possibility of shifting the fuel for power generation from coal to natural gas.

In May, the Energy Policy Administrative Committee (Epac) approved NPS’s request with power generation remaining at the same capacity. The Energy Regulatory Commission was assigned to negotiate a power price for purchase by Egat before the PPA signing date.

SET-listed Ratch Group has announced progress for the 1,400MW Hin Kong power plant project and has entered into a 25-year PPA with Egat.

Egat owns a 45% stake in Ratch.

Two power generators with 700MW capacity each are fired by natural gas and located in Hin Kong subdistrict, Ratchaburi province.

The first block of the power project will start operating in 2024 and the second block will begin the following year, said Kijja Sripatthangkura, Ratch’s chief executive.

“The development will be done under the new wholly owned subsidiary Hin Kong,” he said.

Mr Kijja said the Hin Kong power plant will be built at the site of the Tri Energy power plant, which will be retired in 2020.

Tri Energy, also a Ratch subsidiary, has a 700MW licence, with an additional capacity of 700MW awarded by Epac.

Ratch offers an average power rate lower than those of other private power producers, and Epac agreed that the rate was fair for Egat and end-users.

As a result, Hin Kong will design the first 700MW unit to be repowered, while another 700MW will be installed with a new power generator.

Ratch is conducting a feasibility study and awaiting approval from Onep.

  • Bioenergy
17 July 2019

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  • Malaysia

The Housing and Local Government Ministry is looking to tap the mountains of plastic trash in the country as an alternative fuel and source for producing cement, it was recently reported.

The minister stated that the technology known as processed engineered fuel (PEF) could help the government cut down the illegal plastic garbage pile nationwide, adding that, currently, there is only one known company in the country using PEF.

An industry leader in the manufacture and supply of alternative fuel to the cement industry in Chemor has been using local plastic waste and imported dry materials such as plastic, papers, clothes and wood to process into PEF.

They argue that this mechanism will help to clear all illegal plastic companies and dumpsites in the country, as there is no other place to dispose of the waste or companies coming in to take over the operation at the moment.

It was also noted that the PEF, said to produce zero-waste, will be used as one of the materials to produce cement. This will increase the state economy and also produce a lot of job opportunities for the locals in the cement industry.

If all goes according to plan, the ministry is expected to clear all the 40 listed plastics companies and dumpsites, which are either issued stop-work order or sealed for operating illegally, within six to 12 months. The ministry has received another suggestion from a local company called The Asher, which used “pyrolysis plasma” technology to incinerate plastic junk.

It is a mobile unit which can be deployed to illegal plastic companies and dumpsites to burn all the waste. The technology only produces 4 per cent of waste upon burning, which can be used as fertiliser and as well as a material to produce bricks. Moreover, 50 units were already used in 13 countries so far.

It was noted that the ministry may consider using pyrolysis plasma for Malaysia is the technology clears the criteria and gets approval from the Environment Department.

An earlier report by OpenGov Asia noted that Malaysia will continue to advocate and strengthen maritime and oceanographic research for the sustainable South China Sea as many nations sharing the sea depend on its living and non-living natural resources for food, trade, transport, tourism and security.

It was noted that, unfortunately, the South China Sea is facing a plethora of threats from climate change, pollution and over-exploitation of its resources, including modifications of coastal and natural marine environments.

Therefore, the ministry will play its role in ensuring environmental sustainability which is pollution-free and resistant to the threats of climate change.

OpenGov Asia also reported that the Malaysian state of Kedah is inviting investors to develop more green technology-based projects in the state, especially those relating to solar power. The state’s Chief Minister said this would not only create more jobs but also establish many new business opportunities in terms of the handling, maintenance and installation of solar panels at commercial and residential premises.

The Chief Minister noted that the state government is also evaluating the entry of several new solar projects, seeing as similar solar projects are now becoming increasingly popular not only in Malaysia but around the world.

The Minister of Energy, Technology, Science, Climate Change and Environment had said that the ministry would have a series of meetings to ensure the national grid is prepared to cater for this renewable energy generation mix, as well as to study the policies to meet its target.

The view is to capitalise on future technological innovations, including industrial revolution 4.0 elements while retaining customers’ confidence through the digitalisation of services and improving customer experiences.

Malaysia is evidently working to push for more environmentally-conscious initiatives and technology in an effort to curb carbon emissions and move towards a move sustainable future.

  • Others
17 July 2019

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  • Singapore

SINGAPORE — The Government will set up a new office to strengthen Singapore’s capabilities in climate science, Environment and Water Resources Minister Masagos Zulkifli said on Wednesday (July 17).

The new Climate Science Research Programme Office, set up under the Centre for Climate Research Singapore (CCRS), will lead and drive efforts to formulate Singapore’s national climate science research masterplan, as well as to build up local capabilities in climate science.

“The Programme Office will work closely with scientists and researchers in our research institutes and universities to harness their expertise for cutting-edge climate science research,” said Mr Masagos, who was speaking at a forum to promote environmental collaboration among partners from the community, public and private sector.

The research will focus on key issues that will have a significant impact on Singapore, including the rise of sea levels, the impact of climate change on the Republic’s water resources and the impact of rising temperatures on human health and the energy sector.

Mr Masagos noted that the Government had established the CCRS in 2013, under the Meteorological Service Singapore in the National Environment Agency, to meet the challenge of climate change with actions based on “robust science”.

“Climate science, where it is developed specifically for the tropics, is a new and complex area of research. There is limited amount of expertise and experts in this area,” said Mr Masagos, who added that more work needs to be done.

In his speech Mr Masagos stressed that climate change is a “pressing priority and an existential challenge”.

“At stake is nothing less than the physical preservation of our island nation and its inhabitants,” he said.

S$10 MILLION FUNDING FOR NATIONAL SEA LEVEL RESEARCH PROGRAMME

Mr Masagos also announced that the CCRS will set aside S$10 million in funding over the next five years for the National Sea Level Research Programme.

The programme, which was announced earlier this year, will help Singapore strengthen its understanding of sea levels around the country and help it develop more robust projections of how sea levels will rise in the future.

The CCRS will also issue a request to local research institutes for their project proposals next month.

Mr Masagos said that Singapore’s mean sea levels were projected to rise by up to around one metre by 2100, although this could occur earlier if ice sheets melt more rapidly or if ice shelves in Antarctica were to collapse.

Such a scenario was one of the most worrying “black swan” scenarios for low-lying countries such as Singapore, said Mr Masagos.

“CCRS has considered what might happen if we see high mean sea levels, high tide, and high surge all at the same time — even though this would be a rare scenario.”

“Sea levels could reach almost four metres above current mean sea levels, and overwhelm our low-lying coastal areas,” he said.

“And if we push our imaginations further, in the extremely rare occurrence that a tropical storm happens at sea — sending us surge waters that we can’t keep out — and a heavy rainstorm happens inland — bringing down rainwater we can’t drain away — both at the same time, we could have the ingredients of a ‘perfect storm’,” he added, noting that such a scenario “could possibily not be inconceivable in the future”.

The minister said that climate science has given policy makers guidance on the need to protect critical infrastructure against rising sea levels and extreme events. This was why Singapore was already building new projects such as the Tuas Port Terminal and Changi Airport Terminal 5 at higher platform levels.

With the CCRS’ climate science tailored for the tropics, Mr Masagos added that Singapore would share what it knows to help its neighbours plan for their adaptation to climate change as well.

S’PORE TO HOST GLOBAL SCIENTIST MEETING

Mr Masagos also announced that as part of efforts to collaborate with scientists around the world, Singapore will be hosting a Scoping Meeting of the Intergovernmental Panel on Climate Change (IPCC) in Singapore in October this year, together with a meeting of the IPCC Bureau, one of the highest decision-making bodies in the IPCC.

The IPCC is the United Nations body for assessing the science related to climate change.

“This is the first time that Singapore will be hosting an IPCC meeting. It signals our strong support for the commitment to climate science and climate action,” said Mr Masagos.

The string of announcements by Mr Masagos were made at the Partners for the Environment forum held at the Sands Expo and Convention Centre.

Into its third year, the annual event is organised by the Ministry of the Environment and Water Resources. It is also co-organised by the British High Commission in Singapore for the first time. The collaboration is in support of the Singapore-United Kingdom Partnership for the Future launched earlier this year which will see both countries broaden and deepen their ties.

  • Electricity/Power Grid
17 July 2019

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  • Cambodia

In efforts to curb electricity shortages during the dry season, the government increased electricity power supply by 315MW to 2,864MW in the first half of this year, data from the Ministry of Mines and Energy said.

During a meeting on Tuesday to review results achieved by the ministry in the first half of this year and set targets for the second half, Minister of Mines and Energy Suy Sem said electricity supply during the dry season had been insufficient, despite government efforts.

“The electricity shortage problem during the last dry season occurred due to drought and a dramatic increase in electricity demand,” he said.

Sem said the government approved eight investment projects in power generation in the first half.

The ministry’s secretary of state Ty Norin could not be reached for comment. However, he previously said the dry season shortages had been due to an unexpectedly high increase in consumption, up 32 per cent this year compared to last year. By contrast, consumption last year rose 16 per cent from 2017.

Electricite du Cambodge director-general Keo Rattanak said last week that the government would focus on prioritising renewable energy development rather than hydroelectric power. He said no hydropower plants would be built along the Mekong River.

He said the Kingdom will boost its investment in solar power by 12 per cent by the end of next year and up to 20 per cent in the next three years.

Rattanak said next year, Cambodia will be able to produce 70MW from solar energy, of which 10MW will be from Svay Rieng province and 60MW from Kampong Speu province’s Oudong district.

  • Others
17 July 2019

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  • Philippines

The Department of Energy (DOE) is firm in its position requiring oil companies to “unbundle” or reveal the details of how pump prices of petroleum products are adjusted.

In a chance interview on the sidelines of 7th Philippine Electric Vehicle Summit in Pasay City on Wednesday, Energy Assistant Secretary Leonido Pulido III said “asking of information” on how the prices per liter of fuel are increased or decreased is not a “form of regulation.”

“The asking of information, not it’s dissemination, but just the asking of information is expressedly authorized in the Oil Deregulation [law]. It is in no way, a form of regulation,” Pulido said.

The Taguig City Regional Trial Court Branch 70 issued a temporary restraining order (TRO) against the DOE’s Department Circular No. DC2019-05-0008 or the “Revised Guidelines for the Monitoring of Prices on the Sale of Petroleum Products by the Downstream Oil Industry in the Philippines.”

The TRO stemmed from a complaint filed by Pilipinas Shell Petroleum Corp. on June 24. The oil companies argued that the circular was leading the industry back to regulation.

Shell is a member of the Philippine Institute of Petroleum Inc. (PIP), which filed a “Petition for Declaratory Relief with Application for a Temporary Restraining Order and/or Preliminary Injunction.”

Apart from Shell, PIP counts as members Chevron Philippines Inc., Isla LPG Corp., Petron Corp., PTT Philippines Corp., and Total Philippines Corp.

The DOE circular mandates oil companies to “unbundle” or provide the DOE with a detailed computation and corresponding explanation and supporting documents on why the prices of fuel products must be adjusted.

Oil companies adjust domestic fuel prices on a weekly basis, usually on Tuesday, based on price movements in global markets.

As for the TRO and other cases against the circular, Pulido said the DOE is now discussing with the Office of the Solicitor General whether it is practical to file a motion for reconsideration or just wait for it to lapse.

He said the DOE and OSG will decide within the week what legal moves it will resor

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