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  • Electricity/Power Grid
8 January 2019

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  • Philippines

The overall tariff billed by Manila Electric Company (Meralco) to the wide base of its residential subscribers this January was down by P0.3418 per kilowatt hour (kwh) due to lower cost of supply procurement from power producers.

The average rate reflected in the bills for those in the 200-kilowatt hour consumption bracket then had been slashed to P9.8385 per kWh versus the previous month’s P10.1803 per kwh.

The generation charge component which accounts for the bulk of the pass-on rate, in particular, had been lower by P0.4184 per kWh to P4.9119 from the last billing cycle’s P5.3303 per kwh.

For the other charges in the billed rate, it was a reverse in the case of transmission charge that reflects the ancillary services procurement of the National Grid Corporation of the Philippines, as this had been up by P0.1210 per kWh in this billing month.

On the whole though, taxes as well as other charges still manifested overall cost decline of P0.0444 per kwh, according to the power utility firm.

Meralco said its supply sourcing from underwritten power supply agreements (PSAs) had been significantly down by as much as P1.2293 per kwh in December supply month. The PSAs had 40-percent share in the utility firm’s supply procurement pie.

Joe Zaldarriaga, the spokesperson of Meralco, has qualified that “the lower PSA charges were brought about by a reduction in capacity fees as a result of the annual reconciliation of outage allowances done at the end of each year.”

The consumer-favorable price trend for this billing period had also been reinforced by “the early completion of annual capacity payments for Sual unit 1, Ilijan, Pagbilao unit 1 and PEDC (Panay Energy Development Corp) – the power generators with supply agreements with Meralco.

Zaldarriaga explained that such redounded to savings “immediately passed on to consumers by way of lower electricity rates.”

The Meralco executive qualified though that “the capacity fees of the PSAs will return to normal levels in January,” and such will impact in the next billing month.

On the utility firm’s contracted independent power producers (IPPs), their billed rates had been higher by P0.0847 per kWh in the last supply month, and that was attributed mainly to the depreciation of the Philippine currency vis-à-vis the greenback. It has been emphasized that about 92-percent of the IPP contracted capacities are denominated in US dollars.

Procurement from the Wholesale Electricity Spot Market (WESM) also eased the final pass-on rate to consumers, although the cost reduction was hardly felt because it was at a very marginal P0.0165 per kwh.

The respective shares of supply from IPPs and WESM reflected in this billing month had been at 42-percent and 18-percent, according to Meralco.

  • Oil & Gas
7 January 2019

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  • Malaysia

PETALING JAYA: Oil and gas company has secured contracts worth RM760mil in Angola and Malaysia that boosted the combined value of project wins in current financial year ending Jan 31, 2019 to RM9.3bil.

The company, in a statement on Monday, said the growing order book will see a higher utilisation of its assets.

In Angola, the company has secured a two-year drilling contract with extension options.

“The project entails using a first of its kind technical solution to improve efficiency for the drilling campaign,” it said.

In Sarawak, Sapura Drilling has accepted an extension of its contract with Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd for the provision of Sapura Esperanza, a semi-submersible tender assisted drilling rig.

“The contract entails drilling three wells offshore Sarawak,” it said.

In addition, Sapura Drilling was awarded a contract extension by Petronas Carigali Sdn Bhd for the provision of semi-tender assisted drilling rig, Sapura Berani.

The contract comprises the drilling of two wells at the Sumandak facility, offshore Sabah.

Meanwhile, Sapura Fabrication was awarded a contract from Petronas Floating LNG 1 (L) Ltd to undertake engineering, procurement, construction and commissioning (EPCC) works for the relocation and tie-in of the PFLNG Satu (Petronas Floating Liquefied Natural Gas), currently located in the Kumang Cluster, offshore Sarawak.

Read more at https://www.thestar.com.my/business/business-news/2019/01/07/sapura-energy-bags-contracts-worth-rm760mil/#A26Eaek1JVB4lTLw.99

  • Energy Cooperation
7 January 2019

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  • Philippines

MANILA — AboitizPower Corp. will provide energy services for Light Industry & Science Park (LISP) IV in Malvar, Batangas, one of the latest economic zone projects of Science Park of the Philippines, Inc. (SPPI).

In the 25-year service agreement between AboitizPower and SPPI, the former’s distribution utility Malvar Enerzone Corp., will manage the construction, installation, operation, and maintenance of the power distribution of the ecozone.

“This new partnership underscores AboitizPower and SPPI’s efforts to provide Filipinos and foreign partners with excellent business support and services that are adherent to global standards,” AboitizPower Distribution Business Group Executive Vice President and Chief Operating Officer Jaime Jose Aboitiz said.

AboitizPower said it will have two 50-megawatt transformers inside the LISP IV to provide reliable and quality power to locators, which are mostly from manufacturers and exporters.

“Economic zones, through their products and services, are major drivers of our economy. They provide thousands of Filipinos with gainful employment. We are happy to support these zones and their locators through reliable, dependable and efficient power, so they can continue to contribute to the growth of the economy, our people, and the country,” added Aboitiz.

LISP IV is a 212-hectare industrial estate project of SPPI. The ecozone is part of its mixed-use property development Malvar Cybergreen.

SPPI intends to keep 35 percent of the original landscape of Malvar Cybergreen to preserve the natural ecosystem in the area.

“With our goal to make LISP IV another world-class and sustainable industrial estate similar to our other developments, we saw the need for a partner who shares our commitment to quality, innovation, and sustainability,” said SPPI President Richard Albert Osmond.

AboitizPower’s EnerZone Group has been providing power services to various ecozones in the country particularly in Mactan, Balamban, Subic, and Lipa. (PNA)

  • Oil & Gas
7 January 2019

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  • Philippines

MANILA, Philippines – Pump prices will increase on Tuesday, January 8, amid movements in the world market, various oil companies confirmed.

Caltex, Shell, PTT Philippines, Petrogazz, Phoenix Petroleum, and Eastern Petroleum will increase P0.70 per liter on diesel and P0.80 per liter on gasoline.

The changes will be implemented starting 6 am Tuesday.

The Department of Energy (DOE) said diesel prices will range from P33.45 to P40.98 per liter, and gasoline from P39.25 to P53.60.

The agency said the increases are due to the price movements in the global market and are not due to the higher excise tax as specified under the Tax Reform for Acceleration and Inclusion (Train) Law.

The agency said most gas stations would implement the higher excise tax between January 15 and February 1.

The DOE said that only 32 Flying-V and 268 Petron gas stations had implemented the hikes after their stocks were depleted.

Fuel prices will remain frozen for 15 days in areas that were placed under a state of calamity.

Gas prices have been low compared to last year’s prices due to tumbling prices in the global market.

The DOE said the steep declines in the world market will cushion Filipinos from the effects of the Train Law. – Rappler.com

  • Coal
7 January 2019

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  • Indonesia

Singapore — Indonesia’s Ministry of Energy and Mineral Resources has set its January thermal coal reference price, also known as Harga Batubara Acuan or HBA, at $92.41/mt, down 0.11% month on month, and down 3.28% year on year.

China’s import limitation impacted the seaborne thermal coal prices, according to the ministry’s spokesman Agung Pribadi.

The ministry had set the price for December at $92.51/mt, and for January 2018 at $95.54/mt.

The HBA is a monthly average price based 25% each on Platts Kalimantan 5,900 kcal/kg GAR assessments, Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR), Newcastle Export Index (6,322 kcal/kg GAR) and globalCOAL Newcastle (6,000 kcal/kg NAR).

In December, the daily Platts FOB Kalimantan 5,900 kcal/kg GAR coal assessment averaged $68.02/mt, down from $69.35/mt in November, while the daily 7-45 day Platts Newcastle FOB price for coal with a calorific value of 6,300 kcal/kg GAR averaged $99.93/mt, up from $99.42/mt in November.

The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products, and calculating the royalty producers have to pay for each metric ton of coal sold.

It is based on 6,322 kcal/kg GAR coal with 8% total moisture content, 15% ash as received and 0.8% sulfur as received.

  • Energy Cooperation
7 January 2019

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  • Lao PDR
  • Vietnam

HÀ NỘI — Vietnamese Prime Minister Nguyễn Xuân Phúc and his Lao counterpart Thongloun Sisoulith co-chaired the 41st session of the Việt Nam-Laos Inter-Governmental Committee in Hà Nội on Sunday.

PM Phúc expressed his delight at the positive development of traditional friendship, special solidarity and comprehensive co-operation between Việt Nam and Laos in diverse areas over the recent past.

PM Sisoulith believed the meeting will create a new driving force for the practical and effective development of bilateral ties.

Both sides were satisfied with the outcomes of co-operation between the two governments in 2018, especially in politics, external affairs, national defence-security, social safety and order.

More than 400 projects worth about US$4.1 billion by Vietnamese firms contributed to Laos’ socio-economic development. Two-way trade between the two nations exceeded the $1 billion benchmark in 2018, up 14 per cent year-on-year.

Several strategic transportation connectivity projects are underway while the number of Vietnamese scholarships to Lao students keeps increasing, helping to raise the total number of Lao students in Việt Nam to more than 14,200 so far.

Both sides reached consensus on co-operation orientations for 2019, which lays the focus on collaboration across the fields of politics, foreign affairs, defence, and security.

Regarding economic ties, the two countries will exchange experiences in building policies to stabilise the macro-economy and promote sustainable development. Also, they will work together to create business conditions for companies in each nation to reach 10 per cent growth in two-way trade this year.

Meanwhile, improving the quality of education-training cooperation will be prioritised, of which historical works highlighting the special relations between the two countries will be added to curriculums at both Vietnamese and Lao schools.

In addition, competent ministries, sectors and localities will foster the practical and effective co-operation in culture, science, society, communications, sport, healthcare, and legislation, among others.

In the spirit of special trust, the two sides agreed to continue close coordination and mutual support at regional and international forums. The two countries will accompany each other to deepen the cooperative progress of the ASEAN Community, and enhance the ASEAN’s role in strategic issues of the region, including the East Sea matter.

Furthermore, they were unanimous on co-operation in effectively and sustainably using water resources in the Mekong River.

Laos also backed Việt Nam’s candidacy for a non-permanent seat in the United Nations Security Council in the 2020-21 tenure.

PM Phúc stressed that right after the session, the Vietnamese Government will direct relevant ministries, sectors, localities, enterprises and units to closely collaborate with their Lao counterparts to immediately and effectively implement the just-made decisions.

Following the session, the two PMs witnessed the signing and exchange of six documents, including an agreement on the cooperation plan between the two governments in 2019, the minutes of the session, an agreement on the Vietnamese Government’s provision of 300 tonnes of rice seeds to the Lao Government, an agreement on the educational co-operation plan for 2019, the minutes on the transfer of the radio-TV station in Laos’ province of Savanakhet, and the minutes on the transfer of the Vietnamese-language faculty project at the Suphanouvong University and the Champasak University.

Bilateral meetings

On the same day, General Secretary of the Communist Party of Việt Nam (CPV) Central Committee and President Nguyễn Phú Trọng hosted a reception for Lao Prime Minister Thongloun Sisoulith.

Trọng congratulated Laos on its important domestic and foreign achievements over the past three years of implementing the Resolution of its 10th National Party Congress and expressed his delight at the deepening Việt Nam-Laos relations.

The Vietnamese leader highly valued the outcomes of the 41st session of the Việt Nam-Laos Inter-governmental Committee, describing it as a very important basis for the two countries to successfully implement the agreement on the cooperation plan between the two governments in 2019, as well as the Việt Nam-Laos co-operation agreement for the 2016-20 period.

He asked the two governments to work together in directing their ministries, sectors, localities and firms to implement the agreements reached at the session, focusing on the exchange of information and experiences in Party building, socio-economic development, close collaboration in national defence-security and foreign affairs, and seek ways to untangle the knots so as to improve the effectiveness of the cooperation in economy, investment, trade, culture, education, and science and technology.

Sisoulith expressed his belief that under the leadership of the CPV led by the General Secretary, the Vietnamese people will reap greater achievements in the renewal process and successfully realise the Resolution adopted by the 12th National Party Congress of the CPV.

During the meeting with the Laos PM, National Assembly (NA) Chairwoman Nguyễn Thị Kim Ngân said the Vietnamese NA will closely co-operate with the Lao parliament in continuing to create favourable conditions for the two governments to effectively implement their bilateral agreements.

Ngân further said she hopes the implementation of the key projects between the two countries on energy and transport will be accelerated. Especially, the quality and tempo of the construction of the Lao NA office should be ensured.

Host and guest also shared important experiences in law-building work and the holding of the confidence votes on officials elected or approved by the National Assemblies. — VNS

Read more at http://vietnamnews.vn/politics-laws/483296/vietnamese-lao-pms-co-chair-meeting-of-inter-government-committee.html#qzlW4OJfUeB4fmec.99

  • Renewables
7 January 2019

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  • Vietnam

he government Thursday reaffirmed Vietnam’s desire for a greener energy mix amid the risk of a power deficiency. Environment-friendly coal- and gas-fueled and renewable power plants would make up the mix. While Vietnam faces “obvious risks of an energy shortage in the coming years … it will not sacrifice the environment for economic growth,” Deputy Prime Minister Trinh Dinh Dung said in a meeting with the state-run Vietnam Electricity (EVN), the country’s largest power producer and monopoly distributor.

Coal-fired power is vital to energy security, but “it must be clean,” he noted. Dung asked EVN to pioneer the use of modern technologies to reduce the environmental footprint of new coal-fired plants and handle the cinder and ash at existing plants.

The country faces difficulty in increasing power generation since it has decided to put nuclear power on hold, many coal-fired plants are behind schedule and renewables could not be developed on a large scale due to “high costs” and transmission limitations.

“Hydro power currently meets 40 percent of the country’s demand, but additional supply is almost impossible.

“Our hydro power plant reservoirs, especially in the central region, are facing a serious water shortage, supply of coal for power development is erratic and gas supply is waning while power station projects for new supplies are being implemented slowly,” the deputy prime minister said.

Dung said “EVN must also focus on investing in transmission systems to bolster the development of renewables.”

The inadequate transmission system is now a bottleneck slowing down wind and power projects though a dramatically rising number of investors have shown interest in such projects following the recent increase in feed-in-tariffs (FITs).

Dung also instructed the Ministry of Industry and Trade to hasten studies for the country’s investment in coal transshipment ports and regasification terminals to support development of gas-fuelled power, and quickly complete negotiations to buy power from overseas.

He also asked EVN and other investors to speed up the delayed construction of major projects like Nhon Trach 3-4, O Mon 3-4, Tan Phuoc, Long Phuc 2-3, Quang Trach, and Quynh Lap.

Vietnamese firms lack the resources for major projects while foreign loans are difficult to get due to government guarantee-related issues.

The regional imbalance in power supply and demand is also a challenge. While the southern region accounts for more than half the demand (the north nearly 40 percent and the central region nearly 10 percent), power is being generated mainly in the north and central region (about 60 percent).

To make it worse, the installation of transmission lines, both the main grid and branches, has been slow and failed to keep up with the pace of power generation, while negotiations to buy electricity from other countries have been going at a snail’s pace.

The installed power capacity is around 48,000 MW. Under the revised Power Development Plan VII, a total of 60,000 MW is expected to be generated by 2020, with coal-fired plants accounting for 42.7 percent followed by hydropower (30.1 percent), gas-fired plants (14.9 percent), and renewables (9.9 percent).

By 2030, the capacity will jump to 129,500 MW, with the ratios of coal and gas-fired power remaining almost unchanged, but renewables doubling to 21 percent.

  • Energy Cooperation
6 January 2019

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  • Vietnam

Hanoi (VNA) – The Vietnamese National Assembly (NA) will closely cooperate with the Lao parliament in continuing to create favourable conditions for the two Governments to effectively implement their bilateral agreements, NA Chairwoman Nguyen Thi Kim Ngan affirmed on January 6.

During a reception in Hanoi for Lao Prime Minister Thongloun Sisoulith who came for the 41st session of the Vietnam – Laos inter-governmental committee, Ngan further said she hopes the implementation of the key projects between the two countries on energy and transport will be accelerated. Especially, the quality and tempo of the construction of the Lao National Assembly office should be ensured, she stressed.

The guest briefed his host of the outcomes of the session which he co-chaired with Vietnamese Prime Minister Nguyen Xuan Phuc earlier the same day, during which the two sides highly valued the achievements recorded in 2018, exchanged ideas on the difficulties and affirmed their determination to boost up the cooperation in 2019.

At the session, the two sides signed six cooperation minutes, affirming that they will actively collaborate to prepare for important projects between the two countries, the Lao leader highlighted.

Chairwoman Ngan spoke highly of the outcomes and stressed that the NA supports the Vietnamese Government in intensifying its cooperation with the Lao Government. The law-making body will continue its supervision so as to accelerate the implementation of the agreements between the two sides, she said.

The NA leader rejoiced at the great achievements recorded by Laos during the recent past and expressed her belief that under the leadership by the Party, the management by the Government and the supervision by the National Assembly of Laos, the country will reap greater successes.

Host and guest also shared important experiences in law-building work and the holding of the confidence votes on officials elected or approved by the National Assemblies. They expressed their belief that the traditional friendship, special solidarity and comprehensive cooperation between the two countries will continue to be deepened, spanning from the fields of politics, diplomacy and security-defence to culture, education, human resources training, health care, tourism people-to-people exchanges.-VNA

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