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  • Others
14 April 2019

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  • Philippines

MANILA, Philippines — The new head of Nissan Philippines Inc. (NPI) aims to sustain the company’s sales growth momentum by focusing on customer satisfaction and promoting electric vehicles (EVs).

“We delivered great results in the past couple of years and my vision is to sustain this growth momentum for the future,” NPI president and general manager Atsushi Najima told reporters during the company’s handover ceremony.

Najima replaces Ramesh Narasimhan who will be taking over as president of Nissan Thailand.

NPI has seen significant growth under Narasimhan’s leadership.

While most automotive firms registered lower sales last year due to weak demand for vehicles following the government’s move to slap higher taxes on automobiles, NPI bucked the trend as it sold 34,952 units, 40 percent higher than the 24,995 units in 2017.

In the same year, the company accounted for 8.7 percent share of the Philippine automotive market.

Following the good performance last year, Najima said NPI would want to sell to more Filipino consumers by focusing on customer satisfaction.

“Our service is not on sales only. We need to provide after-sales as well. That is why as far as we provide service, we think as a package. We want to get customer satisfaction,” he said.

He said there are opportunities for growth for the company in the country given the huge market, strong economic growth and rising purchasing power.

“Globally, if you look at other countries, GDP (gross domestic product) per capita exceeds $3,000, this is start of motorization. Philippines is exactly at that stage. I see huge opportunity for Philippine market,” he said.

To sustain the company’s growth momentum, he said NPI would also be expanding its offering through the launch of its EV, the Nissan Leaf, next year.

As part of preparations for the launch of the Leaf next year, he said NPI intends to continue to work with the government, as well as to support policies for the development for EVs in the country.

  • Others
14 April 2019

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  • Lao PDR

Laos is stepping up efforts for the use of electric vehicles in the country and will be launching a pilot project for vehicle battery charging stations. The Ministry of Energy and Mines is set to work with the private sector on the project as part of efforts to support the government’s move to minimise the use of fossil fuels.

In his opening remarks at an event held on April 2 to sign a memorandum of understanding on the project, the country’s Minister of Energy and Mines Khammany Inthirath said Laos imports a large volume of fuel annually which has caused a huge trade deficit over the years.

“We are heavily dependent on imported fossil fuels which causes a huge annual deficit. Therefore, this pilot project on the use of electric vehicles will be very helpful in decreasing the consumption of fuel,” he said.

Laos is promoting the use of clean energy in the transport sector as part of measures to translate the government’s policy into an action plan until 2025, a strategy for 2030 and a vision for 2050 for supplying energy to the sector.

“Laos has abundant potential for the use of natural resources such as water, solar power, wind and waste. These could be used to generate 26,000 megawatt annually. So far, about 20 per cent of this potential has been developed,” he said.

Khammany said Laos imports almost two billion liters of fuel per year, worth more than $1 billion.

However, he noted that prior to the official inauguration of clean energy for transport, it was necessary to develop infrastructure, besides charging stations also spare parts outlets and repair centers.

As a first step, Electricite du Laos (EDL) signed an agreement with EV Lao Co Ltd for a feasibility study on charging stations, which will be jointly implemented by the two companies.

EDL managing director Boun-oum Syvanpheng said his firm has been actively studying charging systems for electric vehicles as part of preparations for changing over to clean energy.

EV Lao president Bounleuth Luangpraseuth added the company was keen to work with the government on the possibility of building charging stations.

He said charging stations could be installed at public and private locations and called for recommendations from the public and private sector for the development and operation of electric vehicles in Laos.

  • Renewables
13 April 2019

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  • Philippines

Neltex, the Philippines’ largest manufacturer or plastic pipe products, has tapped Energy Development Corporation to supply renewable energy to their manufacturing facility in Dasmariñas, Cavite. Geothermal energy will come from EDC’s Bacon-Manito geothermal project in the Bicol region. This move will make Neltex the first company in the country’s plastic pipe industry to have made the shift to renewable energy.

Prior to this agreement, EDC had already been supplying green energy to Continental Temic Electronics Philippines, a global automotive parts company based in Calamba, Laguna.

With a total installed capacity of 1471.8 MWe, EDC is one of the largest geothermal companies worldwide. It is a subsidiary of First Gen Corporation, which maintains a portfolio of geothermal, solar, wind, hydro, and natural gas energy assets. EDC and First Gen were the only two Philippine companies that were included among the world’s biggest and greenest companies.

  • Energy Economy
  • Oil & Gas
13 April 2019

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  • Malaysia

PETALING JAYA: Sapura Energy Bhd

image: https://cdn.thestar.com.my/Themes/img/chart.png

’s shares rose after it announced it had secured RM1.3bil worth of new jobs.The oil and gas counter, which was briefly suspended yesterday pending the announcement, gained one sen to close at 34.5 sen. It was the most actively traded counter, with 312.4 million shares changing hands.

In total, there were five new contracts worth a combined sum of about RM1.3bil that Sapura Energy had won for its engineering and construction and drilling segments.

In its filings with Bursa Malaysia, the company said the new wins included a submarine rescue service contract for the Royal Australian Navy. And marking its foray into Egypt, the group’s unit Sapura Offshore Sdn Bhd won a subcontract from Pan Marine Petroleum Services Company for the installation of six new subsea pipelines in the Gulf of Suez.

In the drilling segment, Sapura Energy’s unit, Sapura Drilling Asia Sdn Bhd, secured two contracts for the provision of drilling rigs from ExxonMobil Exploration and Production Malaysia Inc and Petronas Carigali Sdn Bhd respectively.

The list also included a contract from ENI East Sepinggan Ltd won by Sapura Offshore for the construction and installation of two offshore rigid pipelines from the Jangkrik facility to a future manifold near Merakes drilling centres.

The group said its growing orderbook, resulting from the new contract wins, was expected to increase its asset utilisation and contribute to improving its financial performance.

Read more at https://www.thestar.com.my/business/business-news/2019/04/13/sapura-energy-secures-rm13bil-jobs/#BqlTIDFyySzmJOke.99

  • Energy Cooperation
13 April 2019

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  • ASEAN

A two-day meeting of 21st Asean-Senior Officials concluded here on Friday after they discussed ways to impart impetus to connectivity and deepen cooperation on financial matters.

The meeting was co-chaired by Vijay Thakur Singh, Senior Officials’ Meeting Leader (SOM) and (East) in the and Busaya Mathelin, SOM Leader and Permanent Secretary, Ministry of Foreign Affairs,

congratulated on its assuming the Chairmanship of Asean for 2019 and welcomed its role as of the Asean-dialogue parternship for the period 2018-2021.

An MEA release said that the meeting reviewed the Asean-India strategic partnership and its future direction.

“They made their assessment on the progress of cooperation under all three pillars – political-security, economic and socio-cultural. The SOM leaders also exchanged views on regional and international issues of interest,” it said.

The release said they agreed to deepen maritime cooperation as decided at the Asean-India commemorative summit 2018. In this context, they proposed to undertake a variety of measures, including enhanced cooperation in blue economy.

“The meeting desired to impart impetus to Asean-India connectivity, in all its forms. It also welcomed the commissioning of the ERIA study on the trilateral highway and its extension to Lao PDR, and as well as the proposal on formation of digital villages in the Asean countries, under digital connectivity.

“They also discussed ways and means to further deepen cooperation on financial matters,” the release said.

The meeting decided to impart urgency to cooperation in and hold a conference in 2019.

The release said that Asean-India partnership is being implemented through the ‘Plan of Action (2016-20)’ and is making good progress along the 30 mechanisms to implement cooperation in the different sectors.

 

  • Electricity/Power Grid
12 April 2019

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  • Philippines

National Grid Corp. of the Philippines (NGCP), the operator of the system, declared the red alert from 10 a.m. to 4 p.m., which meant demand might exceed available generating capacity during those hours.

NGCP warned of rolling brownouts, particularly in areas serviced by Manila Electric Co. (Meralco), Abra Electric Cooperative and Peninsula Electric Cooperative.

Capacity holds

Meralco said parts of eastern and southern Metro Manila, as well as parts of Rizal province, were cued for rolling brownouts.

There was no power failure, however, as demand peaked at 10,300 MW while generation capacity held at 10,300 MW at 2:18 p.m., and NGCP lifted the red alert.

That, however, did not stop Sen. Risa Hontiveros from following up on calls from fellow lawmakers on Wednesday for an investigation of a suspected collusion to create an artificial power shortage to raise electricity rates.

“We cannot afford to have brownouts during this time when our people rely on electricity to cope with the sweltering summer heat, and when hospitals are packed with people suffering from diseases common during summer,” Hontiveros said in a statement.

She said rolling brownouts could make more people vulnerable to diseases associated with heat, such as heatstroke, dehydration, chicken pox, boils, diarrhea and cholera.

Power outages would hamper the operations and services at hospitals and health centers, she added.

Hontiveros urged the Department of Energy (DOE) to ensure adequate power supply this summer.

Simultaneous shutdowns

On Wednesday, Bayan Muna Rep. Neri Colmenares and Sen. Sherwin Gatchalian pushed for an investigation of simultaneous shutdowns at five power plants in Luzon that forced NGCP to place the grid on red alert.

The shutdowns could be intended to create artificial shortages that would justify power rate increases, Colmenares said.

Gatchalian, chair of the Senate committee on energy, said he would ask the DOE and the Philippine Competition Commission to look into a possible collusion among the power producers, noting a price spike on the Wholesale Electricity Spot Market (WESM).

He said the Energy Regulatory Commission (ERC) and Philippine Electricity Market Corp., which runs the WESM, should also look into the situation.

“We need to find out who is profiting from these power plant shutdowns, because electricity prices literally went [through] the roof [on] the WESM,” Colmenares said.

Gatchalian said he was worried about the increasing possibility that there would not be sufficient power on election day in May.

House probe

Bayan Muna Rep. Carlos Isagani Zarate called on the House of Representatives leadership to open an inquiry into the plant shutdowns and the recent successive power rate increases.

“Without a probe, these power companies might think they can [get] away with this modus (operandi) . . . to jack up power rates, along with other pass-on rates such as missionary fees and system losses,” Zarate said.

Energy Undersecretary Felix William Fuentebella tried to explain the thinning power supply at a news conference on Thursday.

Fuentebella said four power plants with a combined capacity of 1,352 MW remained on forced or unscheduled shutdown as these were undergoing repairs.

To ease the burden on the grid, a so-called interruptible load program has been introduced in the Meralco franchise area.

Under this program, Fuentebella said, companies would voluntarily switch off their utility connection and use their own power generators at certain hours of the day to ease demand on the grid.

Fuentebella said 156 companies had joined the initiative and could altogether reduce the grid burden by 564.15 MW.

Additional capacity

He said an additional generation capacity was expected to boost the grid this month, with Millennium Energy Inc. putting in 70 MW and Therma Energy Inc., 161 MW. Both companies are concluding supply agreements with Meralco.

Fuentebella also announced that the DOE had issued an advisory to Masinloc Power Partners Co. Ltd. to operate its 600-MW coal-fired power plant a week before, during and a week after May’s balloting.

The Zambales company is having its plant’s boiler inspected to ensure reliability.

  • Energy Cooperation
  • Energy Economy
12 April 2019

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  • Malaysia
KUALA LUMPUR: Malaysian Rating Corporation (MARC) has affirmed its corporate credit rating on Tenaga Nasional Bhdimage: https://cdn.thestar.com.my/Themes/img/chart.png

(TNB) at AAA and its sukuk rating on the power giant’s RM2bil Al-Bai’ Bithaman Ajil Bonds at AAAIS.

It said on Friday the ratings outlook was stable. TNB’s ratings benefit from a two-notch uplift to reflect MARC’s assessment of a high likelihood of government support premised on TNB’s standalone corporate credit rating of AA/Stable.

“The support assessment also considers the government’s indirect majority ownership in TNB which provides it with considerable leeway to influence the utility company’s strategic direction.

“TNB’s credit strength reflects its monopoly on electricity transmission and distribution in Peninsular Malaysia and Sabah, its significant electricity generation capacity and strong operational track record with a generation capacity amounting to 13,158MW (54.1% of total installed capacity in Peninsular Malaysia) in 2018,” it said.

TNB’s operating profit before interest, tax, depreciation and amortisation (Opbitda) margin declined to 28.7% in 2018 (PE2017: 32.3%, FY2017: 32.6%) on the back of higher fuel costs and operating expenses.

Against a backdrop of moderating revenue growth prospects and increasing operating expenses, the rating agency expects TNB to manage its operational costs more prudently going forward.

“As more consumers manage their energy usage to incorporate energy efficiency targets, MARC believes electricity growth will remain tepid over the medium term.

“The implementation of MFRS 16 beginning Jan 1, 2019 onwards may impact TNB’s profitability margins. MARC will continue to monitor the impact of MFRS 16 on TNB’s financials,” it said.

Despite posting lower net profit of RM3.7bil, TNB group’s cash flow from operations (CFO) stood higher at RM14.4bil, while its CFO interest coverage and CFO debt coverage stood lower at 7.21 times and 0.22 times.

TNB’s free cash flow stood at negative RM1.9bil, after the disbursement of capex amounting to RM11.8 bil.

As at 2018, major generation projects comprised 30.5% of TNB’s capex while recurring capex formed the remaining 55.5%.

As at end-2018, TNB’s total borrowings increased by 13% to RM52.4bil on the back of the RM3bil Sukuk Wakalah issuance in August 2018 and the US$750mil multi-currency sukuk issuance in November 2018.

“TNB’s standalone rating could come under pressure if its leverage-related metrics continue to weaken in 2019.

“TNB’s contingent liabilities, which include liquidity support provided to its subsidiaries in the form of completion support and rolling guarantees on power plant projects, remain a potential concern, “ it said.

MARC said the stable outlook reflects its expectation that government support will be sustained in the next 12 to 18 months in view of TNB’s strategic importance to the nation’s energy distribution.

Any weakening in TNB’s debt protection measures and/or liquidity buffer would exert pressure on its standalone rating, it added.
Read more at https://www.thestar.com.my/business/business-news/2019/04/12/marc-affirms-tenagas-corporate-credit-rating-at-aaa/#OMHjIVksjZs2mWMk.99

  • Oil & Gas
12 April 2019

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  • Myanmar

* PetroChina International started its first gas station in Myanmar by late March, marking the energy firm’s entry into the Southeast Asian country’s retail fuel market, parent company China National Petroleum Co (CNPC) said on Friday

* The gas station in Yangon is a joint venture between PetroChina International’s Singapore unit and a local Myanmar firm, while gasoline is being supplied by PetroChina International’s Singapore operation, said CNPC

* The Chinese state energy firm annually supplies more than 1 million tonnes of refined fuel to Myanmar, and also started running a fuel storage in Yangon last September

* PetroChina operates a 260,000 barrels-per-day refinery in southwest China’s Yunnan province that processes crude oil piped from a Myanmar-China pipeline. The refinery exported its first refined fuel via trucks in April 2018, said CNPC (Reporting by Chen Aizhu, Editing by Sherry Jacob-Phillips)

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