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  • Oil & Gas
1 March 2019

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  • Thailand

On Wednesday, Thailand’s Minister of Energy Sitthi Chiraphongphan and the first secretary for economy and trade at the Chinese embassy in Thailand witnessed a ceremony to sign a contract for the fuel pipeline expansion project in the Northeast. The contract was signed by Pipeline Network Company–the project’s operator–and China Petroleum Pipeline Engineering–the contractor.

The project will install a 16”petro pipeline and connect it with an existing pipeline of the Thai Petroleum Pipeline Co., Ltd. in Sao Hai district in Sara Buri. The new 342-kilometer pipeline will pass 18 districts in five provinces and end in Ban Phai district in Khon Kaen. Apart from the pipeline, the project will construct a 14 billion liter oil depot worth nine billion baht in the second quarter of this year. The construction is scheduled to be completed at the end of 2021.

The project is expected to reduce petrol oil transport by truck by 88,000 journeys a year and save fuel for transport by more than 15.4 million liters a year.

The Chinese government has provided loans for the project and studies on the expansion of petrol pipelines to Vientiane in Laos

  • Coal
1 March 2019

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  • Vietnam
  • We expect coal-powered generation growth to increase rapidly over the next decade and to dominate Vietnam’s power sector expansion. We forecast coal-powered generation to grow at an average of 10.1% y-o-y to reach about 50.5% of the power mix by 2028.
  • This is due to relatively slow supply growth from traditional sources of energy such as hydropower and natural gas, with the government set to turn to coal to meet the surge in demand for power.
  • Over the longer-term, we stress that there are downside risks for coal power due to increasing environmental concerns – notably due to a…
  • Renewables
28 February 2019

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  • Thailand

Thai-listed energy firm Super Energy Corporation (SUPER), previously known as Superblock, has inked an agreement to purchase two wind power plants in Vietnam for 577 million baht ($18.31 million).

The two projects – HBRE PHU YEN and HBRE GIA LAI – have a combined capacity of 250 MW. SUPER will make the transaction via two subsidiaries Super Wind Energy and Super Energy Group, according to the company’s disclosure to the Stock Exchange of Thailand on Thursday.

“Vietnam has high potential for renewable energy development thanks to its government’s support including tax incentives and benefits of access to source of fund,” said SUPER chairman Jormsup Lochaya. “We expect that both projects will help enhance our competitiveness and strengthen our revenue generation in the long run.”

The company said, it will use working capital to fund both acquisitions. Currently, both projects are in the process of securing licences from Vietnamese state agencies.

Earlier, SUPER had invested in solar power plants in Vietnam with a total capacity of 236.72 MW. It plans to commence the operation of a solar farm in June and is targeting to clock revenues in the second half of this year.

He added that it plans to increase overseas investments over the next two years. Apart from Vietnam, the company is looking to invest in China, Japan and Southeast Asia countries.

It recorded total revenue of 5.73 billion baht ($181.85 million) in 2018, up 3.93 per cent from the previous year.

  • Energy Cooperation
  • Oil & Gas
27 February 2019

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  • Indonesia
  • Malaysia

JAKARTA — Indonesian state-owned oil and gas group Pertamina will increase cooperation with Malaysian counterpart Petroliam Nasional, or Petronas, in an agreement signed on Tuesday that ranges from exploration to renewable power.

The comprehensive deal comes as demand for oil and gas is expected to remain high in Southeast Asia.

Both parties will “explore the possibilities of cooperation from upstream to downstream,” Pertamina said, including research and development, oil and gas exploration studies — especially in technology to develop blocks with high carbon dioxide content — as well as renewable energy.

The scope of cooperation will go beyond their respective home countries, such as oil refining in East Asia and joint exploration of business opportunities on other continents. Both companies also will begin the exchange of crude oil developed in their respective countries, a move that could reduce procurement costs.

The agreement comes a month after private-sector Indonesian oil and gas company Medco Energi Internasional announced a deal to purchase British peer Ophir Energy for 390 million pounds ($510 million), positioning itself to take on top player Pertamina by increasing output in Southeast Asia.

Indonesia’s latest energy policy calls for oil to account for 20% of the country’s energy mix, while gas contributes 24%.

When Petronas was founded in 1974, it was modeled on Pertamina, formed six years earlier. But Petronas has since outgrown its teacher, becoming one of Malaysia’s most profitable enterprises and contributing billions of dollars annually to government coffers.

The Malaysian company ranked 191st in Forbes Global 500 list of companies, with revenue of $52 billion in 2017, while Pertamina generated $42 billion, ranking in 253rd.

Pertamina’s finances likely took a hit in 2018 as the government tried to keep prices of subsidized gasoline low ahead of Indonesia’s upcoming presidential and general election in April. The state-owned company shouldered the additional cost from higher oil prices.

The agreement comes a month after major Indonesian oil and gas company Medco Energi Internasional announced a deal to purchase British peer Ophir Energy for 390 million pounds ($510 million), positioning itself to take on top player Pertamina by increasing output in Southeast Asia.

  • Renewables
27 February 2019

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  • Malaysia

KOTA KINABALU: As per the agreement signed between Sabah Shell Petroleum Company Ltd (SSPC) and Sabahan NGOs – Tonibung and PACOS Trust, in December 2018, the work to develop Sabah’s first renewable energy grid has just begun.

This grid features a new micro hydro turbine to be placed in the Kobulu river to generate an expected, additional 20kW of electricity for the benefit of the inhabitants of Kampung Buayan and Kampung Tiku. This turbine will feed into the two-existing micro hydro turbine systems between these villages.

The new turbine is meant to rejuvenate the existing infrastructure to collectively meet the energy needs of both these growing communities. This grid also allows for more efficient use of the renewable energy through the sharing of electricity between these villages. It will also enable the ability to load shed excess electricity when the usage in either one of the villages is lower.

“We’re proud to have the opportunity to be involved in a project that benefits the communities through our partnership with Tonibung and PACOS Trust. Through the Access To Energy programme (A2E), we are providing cleaner and more efficient energy solutions to the communities that need it most, whilst empowering them socio-economically to be more resilient,” shared Prithipal Singh, General Manager of Sabah Shell Petroleum Company, at the A2E programme’s ground-breaking ceremony.

This initiative will complement the socio-economic development activities that will be based on the communities’ interests, which could lead to eco-tourism or food processing industries for both these villages. These developments are expected to only take place once the installation of the renewable energy grid is completed.

“The work being pioneered by the A2E team here today will hopefully be an example of a working model for electricity generation and distribution for communities within hard-to-reach areas. I’m glad that through partnerships between private and civil societies, longer term benefits such as starting a small business, or running a homestay are now within reach,” said Jenifer Lasimbang, the assemblywoman for the Moyog constituency and Assistant Minister of Education and Innovation.

Also present at the A2E ground-breaking ceremony was senator Adrian Lasimbang.

  • Electricity/Power Grid
26 February 2019

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  • Myanmar

The highest power consumption in Yangon Region is more than 1,548 megawatts, said Union Minister for Electricity and Energy Win Khaing at a meeting with industrialists and factory owners.

Currently, the total power generation by power plants is about 3,586 MW. Yangon consumes about 1548.23 MW in maximum, accounting for nearly half of the total power consumption, he added.

On February 21, the highest power production was 3492.1 MW and 62967.5 MW per hour. The power consumption by Nay Pyi Taw was 125.4 MW, Yangon Region 1433.7 MW, Mandalay 507.9 MW and other regions and states at 1425.1 MW, according to the Ministry of Electricity and Energy.

The power consumption by industrial zones and industries in Yangon Region amounted to 465.740 MW. The ministry is taking measures to satisfy additional power demand. The ministry is upgrading infrastructures to meet power demand of industrial zones as much as it can.

The fully supply of power contributes a lot to economic development of the country. The government allotted the highest amount of budgets for the electricity sector. The ministry is working to implement priority sectors step by step, using the budgets allotted, he continued.

In summer, Yangon Region’s power consumption will reach its peak. The ministry will need a few power to meet the demand. He has called on factory owners to use power at night instead of the early night in order to meet the demand.

  • Renewables
26 February 2019

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  • Cambodia

Although located at different latitudes and on different continents, Cambodia and Lithuania now share the distinction of joining the list of nations that have embraced reservoir-based floating PV.

Singapore-based renewables company Cleantech Solar has announced the completion of a 9.8 MW solar installation that includes 2.8 MW of floating PV and will power Cambodian cement manufacturer Chip Mong Insee Cement Corporation (CMIC). The solar facility, Cleantech said, includes a 7 MW rooftop with the floating section on CMIC’s water reservoir.

The project was designed and financed by Cleantech and will sell power to the cement provider under undisclosed terms.

“The plant will help CMIC reduce operating costs without having to make [a] capital investment, nor having to take the performance risk of [a] solar system,” the developer said. “In addition, the deployment of the floating solar system will shield the reservoir from wind and the direct, hot midday sun, which is expected to reduce water loss through evaporation, contributing to CMIC’s water conservation efforts.”

Cambodia’s solar push

The reservoir section of the project is Cambodia’s first megawatt-sized floating PV installation. The country has so far seen limited development of solar power with a 10 MW solar park connected to its power network, although a 100 MW project is currently being tendered.

In October, the United Nations Development Program (UNDP) urged the Cambodian government to use solar to drive down electricity prices which are among the highest in Southeast Asia. “The government is on the verge of committing to an expansion of its hydropower program and coal plants, and this will limit the scope for solar development and potentially lead to additional social and environmental consequences,” the UNDP said at the time.

Last month, the Cambodian government issued new rules for the adoption of solar. The policy enables the installation of solar plants for self-consumption as long as they do not require grid connection and synchronization. The provisions also establish only medium and high voltage energy users are permitted to consume electricity generated on site and also be synchronized with the grid.

Up to 250 MW of waterborne capacity

In a separate development, the Lietuvos Energija Gamyba (LEG) unit of state-owned Lithuanian utility Lietuvos Energija Group, announced the Lithuanian Business Support Agency has provided additional funding of €235,000 for its planned floating PV project at the Kruonis pumped storage hydroelectric power plant it owns.

The project, being developed with the Kaunas University of Technology, will be the first of its kind in Lithuania, LEG said in a press release.

The floating solar plant will initially have a capacity of 60 kW but may expand to 250 MW as the water surface identified by LEG for it runs to around 300 hectares. “The successful implementation of such [an] innovation would create greater value for Lietuvos Energija Gamyba shareholders and would contribute to the development of renewable resources in Lithuania, as the capacity of the currently installed solar power plants in Lithuania would increase three times,” said Darius Kucinas, production director for LEG.

According to the utility, the project is expected to be complete by 2021. The large-scale solar array will provide the hydropower plant with a reliable frequency control regulation service.

The utility unveiled its Strategy of Lietuvos Energija LE 2030 in May, a plan to increase renewable energy power production and pursue international development in neighboring countries. The strategy includes the development of high-tech energy storage capacity in power plants and solar is expected to represent more than a third of the group’s total installed renewable energy capacity by 2030, said LE – around 1.19 GW. Under the plan, wind and biofuels are set to reach 1.65 GW and 160 MW of capacity, respectively, and LEG also intends to acquire strategic power generation capacity abroad.

  • Energy Economy
26 February 2019

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  • Cambodia

February 26 (Renewables Now) – Electricite du Cambodge (EDC), an electric utility in Cambodia, has launched an international tender for the implementation of a 60-MW solar photovoltaic (PV) project, with bids to be accepted by May 17, 2019.

The project will see the construction of a solar park that will be the first phase of a larger complex, with a capacity of 100 MW, in the country’s Kampong Chhnang province. According to the tender documents, published earlier this month, the maximum bidding tariff is USD 0.076 (EUR 0.067) per kWh. The capacity will be installed on a build-own-operate (BOO) basis.

The scope of work will cover the development, design, financing and construction of the 60-MW plant, as well as the provision of operation and maintenance (O&M) services following completion. The construction of a substation and a related transmission interconnection facility is also included.

The winner will be awarded a long-term power purchase agreement (PPA) with EDC.

The utility noted that the project is expected to promote the deployment of low-cost power production capacity in Cambodia and help the country diversify its power mix with more clean energy generation.

(USD 1.0 = EUR 0.880)

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