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  • Electricity/Power Grid
  • Oil & Gas
25 October 2018

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  • Vietnam

HÀ NỘI — The building of new thermopower plants has recently become a cause célèbre in the country as economic demands and environmental concerns face off, especially with a number of localities rejecting central Government-approved plants.

Việt Nam needs an enormous amount of energy to feed one of the fastest growing economies in the world, and coal-fired thermopower plants are usually favoured by governments as the most affordable option that can guarantee a cheap supply of electricity, however, environmentalists and the public have been arguing that the perceived ‘low costs’ have not accounted for costly long-term consequences that these plants dealt to the environment and people’s health.

According to the revised National Power Development Master Plan VII (for the period 2016-30), the installed capacity of the whole coal-fired power of the country would reach 55,300MW by 2030, with 14,600MW supplied by 11 projects in the Mekong Delta region.

Most recently, the low-lying coastal province of Long An received attention as the local government decided late in September that they would ask the Ministry of Industry and Trade (MoIT) to not go through with two coal-fired thermopower plants in the province, opting to build a US$5 billion thermopower plant run on liquified natural gas (LNG), which supposedly produces less pollution and greenhouse gases, instead.

According to the approved master plan, a power plant complex would be underway in Long Hựu Đông Commune in Cần Đước District, comprising two coal-fired plants slated to go into operation in 2025 and 2028, respectively, with a total capacity of nearly 3,000MW.

The complex is expected to generate 17 billion kWh a year, helping to ensure electricity demands for socio-economic development in the province as well as its southern neighbours – where the State-run Việt Nam Electricity (EVN) said that delayed coal-fired projects might lead to crippling power shortages in 2021-23 and potentially 2025.

However, Trần Văn Cần, Chairman of Long An People’s Committee said that after serious discussion with experts, scientists and other agencies regarding the environmental aspects of the power plan, the province had decided that coal-fired plants would not be in its best interests.

Cần said that three investors – one Vietnamese, one South Korean and one Thai – had already contacted the People’s Committee about building an LNG power plant at the site originally planned for thermopower plants.

Cautious choice

According to the MoIT, in the power development master plan, Việt Nam’s sources of power are identified as hydropower, thermopower (coal-based or gas-based), renewable energy, nuclear energy and imported energy.

With Việt Nam’s commercial electricity demands for 2017 at 174 billion kWh and three times as much, 500 billion kWh, in 2030, the electricity sector would be hard-pressed to ensure sufficient supply, while it needs to make sure that the price is in line with what people and businesses can reasonably pay, at the same time, power production activities must not harm the environment.

According to Lê Văn Lực, deputy head of the MoIT’s Electricity and Renewable Energy Authority, Việt Nam’s most viable source of energy is hydropower, however, the 285-strong network of hydroelectric power plants stationed across the country – mostly small- and medium-scaled – have already exhausted their potential.

As much as 16-17 per cent of the country’s energy would be supplied by LNG-fueled thermal power plants, Lực said, but starting from 2019-20, the country would need to find supplemental sources of gas as the natural reserves are running out.

The price of electricity generated from LNG projects are also higher, averaging VNĐ2,300-2,500 per kWh, with imported units reaching around the same (10 US cents/kWh), 1.5 times the price of thermal electricity and highly sensitive to the global market’s fluctuations, according to Lực.

Renewable energy in Việt Nam is still at a nascent stage, with most solar and wind power projects clustered in the southern provinces of Ninh Thuận or Bình Thuận. In addition, they cannot guarantee a stable supply as they are heavily reliant on weather conditions, thus, needing energy storage and battery technology, while Việt Nam is always hungry for energy, with dismissible difference in demands during rush hour/normal hour or night/day.

The price of electricity from renewable energy is also quite high.

According to Trương Duy Nghĩa, President of Việt Nam’s Association for Thermal Science and Technology, the building of new thermal power plants in the southern region is critical for its development.

The cost of thermal power is currently 7 cents/kWh, the lowest behind hydropower, with modest investment at $1.5/kWh and great capacity generation.

In the meantime, clean sources of energy are too pricey to dominate the energy scene.

“Similarly, Việt Nam would need to import liquefied natural gas, and then we’d have to worry about transport lines, reservoirs and storage of the gas, all of this would make electricity derived from LNG less competitive in terms of price compared to coal-fired,” Nghĩa added.

The environmental concerns surrounding coal-based thermal power plants involved the ash they generated and the sources of coal they use.

However, with the latest technology, thermal power plants with optimal operation could efficiently burn the coal entirely and sufficiently treat pollutants like SO2 or CO2, Chairman of the Việt Nam Energy Association, Trần Viết Ngãi, told Vietnam News Agency.

The ash and slag are already used to produce non-fired bricks at an affordable cost, with companies in the northern province of Bắc Ninh capable of handling more than the waste amount produced by the coal power plant in the province already, according to Ngãi.

He also affirmed that thermal power, especially coal-fired, would continue to be the mainstay of the national power system.

“The association sees that across Việt Nam, coal-fired power plants’ installed capacity in the planning is just 20,000MW, this number could be increased to 45,000-50,000MW and still pale in comparison to other countries,” Ngãi said, but adding that the amount of coal that the country would need to import – 200 million tonnes by 2030 – is a problem that needs serious discussion.

Regarding the Long An power plan, MoIT said that since there had been no research conducted to ensure the uninterrupted transport of natural gas to the intended LNG power plant’s location, it could not approve the province’s alternative plan.

However, the authorities, including MoIT officials, have expressed “respect for Long An Province Party committee and people’s decision.”

“The ministry agrees with the idea that economic development should not be pursued at the expense of the environment. Environment impacts would weigh heavily in the consideration of the power plant project,” Lực from MoIT said, adding that once the province decides on a capable investor, it would report to the Government on the revised power plan.

Similarly, earlier in 2018, the Mekong Delta province of Bạc Liêu asked to remove the national master plan’s coal thermal plants out of its planning and the decision was approved by the Government.

The province then allowed a US-based investor to set up a $4 billion natural gas thermal plant with a capacity of 3,500KW, which is scheduled to begin operations in early 2020. — VNS

  • Renewables
25 October 2018

 – 

  • ASEAN

Nation’s energy policy shifts from coal to advanced reactors

Twenty years ago, China had just three nuclear power reactors. Today, it has 38, with 19 more under construction.

The country accounts for more than half the new nuclear power investment globally and is expected by 2030 to pass the United States, which has led the world in nuclear power generation for half a century.

After decades of large-scale use of fossil fuels to produce energy, China has recognized the impact this has had on the environment and the health of its people.

Economic losses due to pollution account for almost 6 percent of GDP, according to World Bank estimates.

Today, there is a renewed push for cleaner, greener energy sources.

All aspects of China’s nuclear power industry – including design, construction, technologies, maintenance, management, security, investment, returns and future projections – are receiving renewed attention.

He Yu, chairman of China General Nuclear Power Corp, has said that China should build four to six nuclear reactors annually to ensure the installed capacity of nuclear power reaches at least 150 gigawatts by 2030.

China’s nuclear power program was put on hold after the Fukushima nuclear disaster in Japan in 2011, with approvals for new nuclear plants suspended and a nationwide safety review launched after the incident.

He said last year that nuclear energy plays an irreplaceable role in China’s energy security and energy structure optimization, while it will also help to reduce air pollution caused by coal-fired power generation.

The country added about 8 gW of nuclear power capacity in 2016, boosting its installed capacity to about 34 gW, according to BMI Research, a provider of macroeconomic, industry and financial market analysis.

The government has pledged that renewable energy will play an integral role in the push for greener growth, boosting the share of nonfossil energy to 15 percent by 2020 and 20 percent by 2030, with coal consumption reduced to 62 percent of energy use by 2020.

China published a nuclear industry white paper in 2016, detailing policies regarding nuclear emergency preparedness and highlighting a “rational, coordinated and balanced” approach to nuclear security.

The country said it had “the most advanced technology and most stringent standards” to ensure the safe and efficient development of nuclear power.

While developing nuclear power projects in the domestic market, China is actively exploring export markets for its advanced equipment in the sector.

It will profoundly influence what the rest of the world believes about nuclear power and the nuclear fuel cycle, according to Mark Hibbs, a senior fellow with the Carnegie Nuclear Policy Program in Germany.

He believes China aims to move from conventional nuclear power reactors to a “fully closed nuclear fuel cycle based on fast breeder reactors, spent fuel reprocessing and the use of recycled plutonium fuel”.

“If China fails, it will reinforce conventional thinking in some countries that nuclear fission is a transitional energy technology likely to be replaced this century by other sources,” he stated in his new report “The Future of Nuclear Power in China”.

“If China succeeds, prevailing low expectations for nuclear power may instead be dramatically revised.”

If that is the case, Hibbs said other countries may follow in projecting that nuclear power will be sustainable for centuries and that the risks associated with an industrial-scale “plutonium economy” are socially, economically, environmentally and politically acceptable.

According to the International Atomic Energy Agency, China stands at the top of the list of expanding nuclear power countries, followed by Russia with seven reactors under construction, India with six and South Korea with three.

In terms of having the most reactors in operation, the United States leads, followed by France, Japan and China.

The IAEA said that while China is trying to curb its reliance on coal, which pollutes the air and is hard to transport from mines in the west and north of the country to the economically developed southeast coast, it is building most of its reactors along this coast.

“With nuclear, it plans to increase energy security, lower its reliance on coal and oil, and limit carbon dioxide emissions while keeping up its economic growth,” the IAEA said.

In June, three significant announcements were made involving China’s nuclear power sector.

The first was on June 8, when China National Nuclear Power and Russian state nuclear company Rosatom signed a multibillion-dollar agreement, the biggest nuclear energy deal between the two countries for more than a decade.

Under the $3.62 billion deal, Russia will build four new-generation Water-Water Energetic Reactors – two at the Xudabao power plant in Northeast China’s Liaoning province, and the other two at Tianwan in the eastern province of Jiangsu.

Analysts say Tianwan is regarded as a testing ground for Russian nuclear technology and that the latest deal confirms Beijing’s ongoing commitment to a bilateral energy partnership in which Russian technology provides a springboard for a state-of-the-art nuclear industry in China.

On June 29, the world’s first EPR, formerly known as the European Pressurized Reactor, in Taishan, South China’s Guangdong province, was successfully connected to the national grid. This was followed next day by the announcement that Westinghouse’s Sanmen Nuclear Power Plant in the eastern province of Zhejiang had been successfully connected to the grid.

Jonathan Cobb, senior communication manager with the World Nuclear Association in London, said coal still generates about 70 percent of China’s electricity.

“China’s energy policy seeks to shift away from such high reliance on coal and build more nuclear generation, as well as other low-carbon generation sources,” he said.

“This is not only as part of a long-term plan to control greenhouse gas emissions, but also to reduce the terrible health impacts of air pollution experienced today from fossil fuels.”

With demand for electricity still growing and such a large capacity of coal-fired generation already in place, it is likely China will still use coal for a substantial proportion of its electricity generation for several decades to come, Cobb said.

He added that increasing the use of nuclear power in place of coal will have a substantial positive benefit on the environment.

“Each gigawatt of nuclear capacity built in place of coal – about the size of one new nuclear power plant – will avoid the emission of around 8 million tons of carbon dioxide each year, as well as sulfur and nitrogen oxides and particulates.

“This will help the environment in the long term and immediately improve people’s health due to the reduction in air pollution,” he said.

However, according to Cobb, China relies on coal for much of its electricity generation, and meeting its growing demand for electricity and phasing out coal requires time and a long-term program of new nuclear building.

Trevor Findlay, a senior research fellow at the School of Social and Political Sciences at the University of Melbourne, said that if China is to meet its greenhouse gas commitments under the Paris Agreement and more demanding future agreements, it will need nuclear energy in its energy mix, especially if it is to reduce its reliance on coal.

“But as in other countries, nuclear is likely to only ever account for a relatively small percentage of China’s total energy production, mainly because of the cost of nuclear power plants compared to other sources of energy, such as natural gas, wind and solar,” Findlay said.

“China is certainly building more nuclear power plants than any other country, so to that extent it is leading the world,” he said.

Whether this leads to the deployment of advanced nuclear power technologies remains an unanswered question.

“China has been developing its own indigenous technologies, drawing on its experience with a wide variety of imported foreign models, as it does in many other high technology sectors,” Findlay said.

“But to date, this has not resulted in any revolutionary advances. In the export market, it is competing with Russia, South Korea, Japan and France, and there is no guarantee that it will become the predominant supplier.”

Findlay added that on the issue of nuclear security and safety, “China needs to ensure that in undertaking such an unprecedented expansion of nuclear energy, the capacity of its nuclear regulatory authority, including the number and quality of its inspectors, keeps pace”.

Li Yanfei, energy economist with the Economic Research Institute for ASEAN and East Asia, said that while China does have its own nuclear technology, it needs to focus more on developing it.

Much of the nuclear power infrastructure built so far has used foreign technology, he said.

“Without a mature supply chain to support the building of nuclear reactors, it would be only a blueprint, no matter how good it appears in theory.”

  • Oil & Gas
19 October 2018

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  • Myanmar

As the scramble for more power sources intensifies, focus has centered on tapping Myanmar’s gas fields to meet demand. But can the country afford its own gas?

Myanmar is under pressure to double its power production capacity to 6000 megawatts (MW) within the next two years, in order to meet rising demand. Several power generation projects, the most recent of which is the 225MW Sembcorp Myingyan combined-cycle gas plant, have commenced operations. Next month, a 40MW solar plant in Minbu is expected to come onstream.

The government is also negotiating terms for several power purchase agreements under which it will buy liquefied natural gas (LNG) to meet the bulk of Myanmar’s energy requirements. While official announcements have yet to be made on this front, insiders and analysts warn that the LNG option, which will involve costly infrastructure and complex logistical requirements, is unlikely to come cheap.

As the need to develop new sources of power becomes more urgent, focus has centered on tapping Myanmar’s own fields for gas to meet the country’s growing demand. Now, insiders say the government should take into account domestic needs when it opens up new gas fields next year.

Last month, a 40 metre column of gas was discovered at a depth of 4,820m at the Shwe Yee Htun-2 appraisal well in the A-6 gas block in southern Rakhine. The Shwe Yee Htun-2 discovery adds to the Shwe Yee Htun-1 and Pyi Thit-1 discoveries made in 2016 and 2017.

While France’s Total and Australia’s Woodside are also partners in block A-6 together with Myanmar’s MPRL E&P, “all of the gas produced at A-6 should be taken up by Myanmar for domestic use. We need to make arrangements to be able to buy the gas so that our economy can develop further,” said U Kyaw Kyaw Hlaing, chair of the Smart Group of Companies.

Myanmar is expected to produce 653,300 million standard cubic feet (MMscf) of gas from its four gas fields – Shwe, Zawtika, Yetagun and Yadana – in 2018-19, according to the Ministry of Planning and Finance. The fields are operated by international oil companies including France’s Total, South Korea’s Daewoo, Malaysia’s Petronas and PTTEP from Thailand.

However, most of the gas produced is immediately exported to Myanmar’s neighbours at an agreed price. For example, gas produced at the offshore Shwe and Zawtika fields is exported to China and Thailand under 30-year contracts.

This is because most of Myanmar’s gas contracts date back to the late 1990s, when the country was under US sanctions. At the time, cheap gas produced onshore was sufficient for domestic consumption, so the country resorted to selling the additional gas produced under long-term contracts for income.

But the country’s electricity requirements have since spiked, buoyed by demand from investors and businesses. Now, policy makers are considering channeling more Myanmar gas for domestic use.

Too costly

Yet, Myanmar lacks the funds and infrastructure needed to produce its own gas. According to the Ministry of Electricity and Energy (MOEE), each offshore drilling project is estimated to cost around K2 billion, a sum the country can ill-afford. It will also take years for gas to be commercially produced after it is discvoered.

Meanwhile, buying more of its own gas will involve complex negotiations. “The present arrangement of selling gas to foreign countries can be halted and the gas redistributed within the domestic sector. Renegotiations will of course have to be made with the contracted nations. All resources produced by our nation can be utilised. But how are we going to purchase it?” said U Zaw Aung, director general of the Department of Oil and Gas Planning, which is under the MOEE.

Moreover, gas is sold at a fixed price. If the government or private businesses want to purchase natural gas, they are obliged to pay the agreed price for the duration of the contract, failing which fines will be implemented. The length of the contract depends on the size of the field.

But that’s not the only issue. Myanmar derives a large proportion of its income from gas exports. In fact, most of the funds needed to build Nay Pyi Taw came from gas export revenues. In the future, the country will also need additional funds in areas such as education and healthcare.

“The country needs the money from gas exports. Moreover, income from other sectors is not as lucrative. If we start selling less gas to foreign countries and purchase more for domestic use, we would not have enough funds for the country,” U Zaw Aung said.

In 2017-18, Myanmar received more than US$3 billion for gas exports. During the six month interim period between April and September this year, gas export income amounted to more than US$1 billion, according to the Ministry of Commerce.

Domestic needs

Still, it is becoming increasingly obvious that Myanmar should harness more of its own gas for domestic consumption. “The international market price is fair. But domestically, the price can be reduced to some extent as there are less logistics costs involved,” said U Myat Thin Aung, chair for Hlaing Tharyar Industrial Zone.

U Than Tun, a retired director of the Myanmar Oil and Gas Enterprise (MOGE), agreed that the government should look into prioritising domestic needs. “If the current volume of electricity generated domestically cannot fulfill local demand, we need to take as much as we need from our national gas reserves,” he said, adding that exporting gas while importing other forms of energy to meet local demand is not an efficient use of state revenues.

Despite the country’s shortage of power, just a fraction of the gas produced is allocated for domestic consumption. Of the 1.7 billion cubic feet of natural gas it produces daily, Myanmar exports around 1.5 billion cubic feet, U Kyaw Thura, a geologist at MOGE, told the media in August. However, Myanmar also imports around 50,000 barrels of oil to meet demand, he said.

As such, the government should negotiate for a larger share of the gas produced when it invites international tenders for exploration and production at up to 31 new oil and gas fields next year.

  • Energy Cooperation
  • Oil & Gas
19 October 2018

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  • Philippines

MANILA — Energy Secretary Alfonso G. Cusi witnessed on Wednesday the ceremonial signing of the Petroleum Service Contract (PSC) for Area 4 (East Palawan Basin) of the Fifth Philippine Energy Contracting Round (PECR5) at the Presidents’ Hall of Malacanan Palace.

President Rodrigo R. Duterte signed the PSC on behalf of the Philippine government with Sec. Cusi as witness, while Mr. Itay Raphael Tabibzada, company President and CEO, signed for the Israeli firm, Ratio Petroleum Ltd.

Cusi said the event bodes well for Philippine-Israel economic relations, as well as the country’s upstream petroleum industry.

“The President has been very clear – our country needs to attain energy security and sustainability at the soonest possible time. We are currently experiencing how our dependence on importation has left us at the mercy of price movements in the global oil markets. We need to boost the exploration and development of our own energy resources and the awarding of the petroleum service contract to Ratio Petroleum is a step in the right direction,” he said.

The awarded PSC is part of PECR5, which was launched in May 2014. The PECR was established as a transparent and competitive system of awarding service or operating contracts for prospective petroleum or coal areas within the country.

Ratio Petroleum will now be able to explore Area 4, covering 416,000 hectares across the East Palawan Basin for potential oil and gas resources. Projected minimum total expenditure is valued at USD34.35 million to be derived from studies, data gathering and drilling activities over the initial seven-year contract duration.

Established in 1992, Ratio Petroleum has a number of large-scale operations at the Levant Basin in the Eastern Mediterranean Sea, off the coast of Israel, as well as off-shore operations in the Republic of Malta and the Co-operative Republic of Guyana.

“This is the first petroleum service contract signed under the Duterte administration. In fact, the last service contract awarded was with PXP Energy Corporation. This was almost five years ago in 2013,” Cusi said. (PR)

  • Renewables
19 October 2018

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  • Malaysia

KUALA LUMPUR (Oct 17): Sustainable Energy Development Authority (SEDA) Malaysia today launched the first national solar photovoltaic monitoring system (PVMS).

This PVMS will generate leads to performance database which monitors selected grid-connected solar PV systems for performance and reliability.

The performance and reliability of the key components of the solar PV systems such as PV modules and inverters will be monitored.

The PVMS also acts as an information platform for solar PV in the country, with the monitoring system available for subscription.

The launch of the PVMS was officiated by Minister of Energy, Science, Technology, Environment and Climate Change, Yeo Bee Yin, at the opening of the International Greentech and Eco Products Exhibition (IGEM) 2018.

“Currently, we already have 120 grid-connected solar PV systems (up to 1MV in capacity) throughout Malaysia that are being monitored on a real-time basis.

“We target to have up to 150 grid-connected PV areas by the year-end, hence providing a huge data base.”

The database will become the reference for designing national energy policies and programmes in the future.

Also present at the launch was SEDA Malaysia acting chief executive, Dr Wei Nee Chen.

The PVMS is funded by the Malaysian Electricity Supply Industries Trust Account (MESITA) under the Ministry. The authority has been actively developing the platform ever since the idea was mooted in 2015.

At today’s event, SEDA also launched the country’s first-of-its kind All Risks Solar PV Insurance as an initiative to ensure the investors’ assets are well protected.

The innovative insurance product is by Allianz Malaysia Bhd via Anora Agency Sdn Bhd in collaboration with the Malaysian Photovoltaic Industry Association.

“We are aware that the industry players face various risks as anything can happen to the solar panels.

“Therefore, we welcome more insurance companies to offer their services as at least we will have more choices,” said Yeo.

The Solar PV Insurance addresses the post-installation gaps which are typically lacking in the market.

  • Energy Cooperation
19 October 2018

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  • Malaysia

KUALA LUMPUR (Oct 17): Sustainable Energy Development Authority (SEDA) Malaysia signed a total of three memorandums of understanding (MoU) involving the Asian Development Bank (ADB), the Japanese Business Alliance for Smart Energy Worldwide (JASE-W) and APX Inc today.

Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin said under the the MoU with ADB, the bank will provide three energy experts to thoroughly study the Renewable Energy Transition Roadmap (RETR) 2035 action plan.

“Besides this, the MoU between SEDA and JASE-W will give both parties the opportunity to exchange knowledge on energy conservation and efficiency, especially in the development of Zero Energy Building in Malaysia,” she told reporters after witnessing the MoU signing ceremony, here, today.

The MoU with APX Inc will recognise SEDA as the Qualified Reporting Entity (QRE) for the registration of Tradable Instrument for Global Renewables Registry (TIGRs) which provides a platform for the trading of Renewable Energy Certificates (REC).

“We believe the certificate is very important, especially for international markets, and multinational companies here,” added Yeo.

In the meantime, Yeo also announced the revocation of non-performing Feed-in Tariff (FiT) projects of 155MW, and the release of new quotas of 114MW involving 74MW of small hydro category, 30MW of biogas and 10MW of biomass for eligible applicants.

“SEDA will also conduct e-bidding for the biogas quota to create a better pricing efficiency for electricity,” she said.

Yeo added that the e-bidding will take place on Nov 19, and those interested can submit their application through the e-FiT online system (http://efit.seda.gov.my). — Bernama

  • Energy Efficiency
19 October 2018

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  • Malaysia

KUALA LUMPUR: The government will be introducing building energy intensity (BEI) labelling for buildings as part of its efforts to promote voluntary adoption of energy efficiency in the building sector. It is likely to start with government buildings for starters.

The initiative will be launched at the energy efficiency town hall session to be held on Saturday.

Energy, Science, Technology and Climate Change Minister Yeo Bee Yin said during her speech at the International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM) that the initiative will entail the rating of buildings with between 1-5 stars for energy efficiency.

“This is the first step where we want government buildings to be labelled between 1-5stars for energy efficiency,” she added.

In addition, Yeo said the government will also be aggressively stepping up the adoption of energy performance contracting (EPC) for government buildings next year. The initiative was initiated in 2013.

“There are about 5,000 government buildings in Malaysia. Just imagine how much money we can save by retro-fitting (these) buildings by making the building electricity efficient,” she noted.

Malaysia’s energy consumption in buildings comprised 14% of total energy consumption and 52.4% of electricity consumption in 2016.

Internationally, the building sector is regarded as one of the most cost-effective sectors to reduce energy consumption.

  • Oil & Gas
19 October 2018

 – 

  • Malaysia

KUALA LUMPUR (Oct 17): Gas Malaysia Bhd announced today the successful commissioning of its second gas engine co-generation plant operated with its joint venture partner Tokyo Gas Engineering Solutions Corp.

The joint venture company, Gas Malaysia Energy Advance Sdn Bhd (GMEA), is owned 66% by Gas Malaysia and 34% by Tokyo Gas.

In a stock exchange filing, Gas Malaysia said the plant has officially started supplying electricity and hot water to a manufacturing plant belonging to air conditioner company Panasonic Appliances Air-Conditioning Malaysia Sdn Bhd.

“Currently, Panasonic and Tokyo Gas have commenced their operation of power generator and air conditioning system in combination with energy service by gas co-generation and non-Freon air conditioner, at Panasonic’s manufacturing plant in Malaysia.

“GMEA installed two megaWatt co-generation, fuelled by natural gas, on the manufacturing plant of Panasonic Appliances Air-Conditioning. GMEA will also provide comprehensive services for each phase of the project, from system design, construction, procurement of fuel to facility, maintenance, and to electricity and hot water supply,” said Gas Malaysia.

GMEA was set up to generate and sell electricity and steam through the combined heat and power (CHP) system to the industrial sector.

The system is a simultaneous production of electricity and usable thermal energy from one single fuel source, which is said to be more efficient unlike the conventional electricity generation that wastes vast amounts of heat.

GMEA had in January 2017 successfully completed and commissioned its first CHP plant for a manufacturing company in Prai, Penang.

Gas Malaysia said that with the system, Panasonic’s plant could reduce energy inputs by about 3% and carbon dioxide emissions by some 11%.

“The system is expected to continue contributing to highly-efficient and environmentally-friendly energy supply with natural gas as a clean energy source. The commencement of operation of the project is expected to contribute positively to earnings of the group,” it added.

Shares of Gas Malaysia were unchanged at RM2.83 at market close today. The gas and energy solutions provider has a market capitalisation of RM3.63 billion.

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