News Clipping Archive - Page 1164 of 1320

Electricity/Power Grid ,
Oil & Gas

29 April 2019

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Indonesia

The ADB has announced the first drawdown of funds under a $305m financing package for Indonesia’s largest combined-cycle gas turbine power plant.

The project in Karawang, West Java, will be one of the first and largest projects in Indonesia to use liquefied natural gas (LNG) in a 1,760-megawatt power station.

“ADB is a partner of choice in Indonesia’s strategy to finance low-carbon power generation through private sector participation,” said Michael Barrow, director general for ADB’s Private Sector Operations Department.

“This project will support the country’s efforts to strengthen the liquefied natural gas supply chain and increase energy security, while helping to reduce power-generation costs.”

ADB’s financing package for the project – which is known as Jawa-1 – includes a direct loan of $185m and a parallel loan of $120m provided by the Leading Asia’s Private Infrastructure Fund (LEAP) administered by the bank.

LEAP is an ADB co-financing vehicle dedicated to private sector infrastructure in Asia and the Pacific supported by Japan International Cooperation Agency through $1.5bn equity.

Combined with ADB’s own capital and that of commercial partners, the fund is expected to provide financing of at least $6bn for infrastructure.

The new power station aims to showcase the Indonesian government’s commitment to move towards cleaner domestic energy sources such as natural gas.

The CCGT will supply energy to PLN, the country’s national power utility and is expected to help it avoid 1.77 million tons of carbon dioxide emissions.

Jawa-1 is set to power 11 million households from 2021, pushing Indonesia towards achieving its target of 100% electrification by 2024.

About 4,800 jobs will be created in constructing the plant and 125 jobs when it is operational, and the project will also offer opportunities to improve women’s employment and training.

The ADB estimates that Indonesia needs infrastructure investment of $1.1 trillion for 2016–2030.

Renewables

State-owned enterprises in Indonesia encouraged to optimize utilization of geothermal energy

29 April 2019

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Indonesia

In a written statement received last Friday (April 26), Executive Director of Indonesian Resource Studies (IRESS) Marwan Batubara enjoined state-owned enterprises (BUMN) to further optimize the use of geothermal power. This statement was issued in context of the 38.2% control of state-owned enterprises in the country’s geothermal potential and reserves, far below the ideal conditions set by the 1945 Constitution.

“One of the important aspects of the 1945 Constitution regarding the utilization of Indonesia’s natural resources is about state control, where the management aspects must be in the hands of state-owned enterprises.” said Marwan.

Marwan added that having state-owned enterprises manage the upstream energy sector would guarantee the realization of lower electricity production costs. This will also help the government establish credible baseline costs when dealing with private power producing companies.

It is just as important that the local community benefits from the development of a geothermal project, said Marwan. “The community around the project should not just enjoy the power that will be produced by the facility, but should also receive opportunities to gain economic, socio-cultural, and environmental benefits. These should include improvement of local knowledge.”

Aside from development of the project, power producers should also focus on implementing effective CSR initiatives.

Energy Efficiency

Sema 2019 roars to life at SIC in race to energy-efficient future

29 April 2019

–

Malaysia

SEPANG: Make the Future Live Malaysia is here – and Ministry of Energy, Science, Technology, Environment and Climate Change deputy secretary general (Environment and Climate Change) Dr Nagulendran Kangayatkarasu, together with chairman of Shell Malaysia Datuk Iain Lo flagged off cars to officially open the track for the Shell Eco-marathon Asia 2019 (Sema) at the Sepang International Circuit (SIC) here, today.

Running from April 29 to May 2, Sema 2019 not only features bright students and their innovative, ultra-energy-efficient cars, but also the Shell Eco-marathon Access (Sem Access) event, which is supported by the Ministry of Higher Education, and is open to all Malaysian university students, industry partners and corporations.

“Sem Access aims to introduce Sema to various universities, offering a platform that encourages holistic partnership between the government, industry partners, corporate entities and universities to increase the quality of our students’ capabilities in competing with their cohorts from different countries,” Lo said.

Sema 2019 promises a different experience, not only for student participants, but all involved in the event, as there will also be night races. The first ever held in the 30-year history of Shell Eco-marathon, the event will see over 100 universities and high school teams from 18 countries across the Asia Pacific and the Middle East competing in a display of ultra-energy efficient innovation.

Representing Malaysia are teams from Monash University Malaysia, Universiti Teknologi Mara, Universiti Malaysia Pahang, Universiti Tunku Abdul Rahman and Multimedia University.

“Make the Future Live Malaysia provides a platform for innovation, collaboration and conversation towards a lower-carbon energy future.

Participants taking their car for a safety check during the Shell Eco-marathon Asia 2019 (Sema) at the Sepang International Circuit (SIC). – NSTP/MOHD KHAIRUL HELMY MOHD DIN

“The introduction of the night races will give opportunity for car drivers to experience a better driving environment. It is known that the cockpit can be really hot, especially for the prototype category, and being in such a tight space, driving at night would help the drivers,” said general manager of Make the Future Live, Norman Koch.

He added that although the autonomous race was introduced in the European edition last year, this will be the first for the Asia edition.

“We can’t run away from the autonomous technology in cars. Like it or not, we are in an era when autonomous (machines) and Artificial Intelligence are part and parcel of our life.

“Although it is still very new, we created the category not only with students in mind but along with students – deciding what should be included in the judging criteria, among others,” Koch said.

The race is a test to see whose car can go farthest using the least amount of energy, and participating teams will also be able to qualify for the Drivers’ World Championship – matching the proven energy efficiency of their vehicle with speed, skill and the driver’s strategy in a race to cross the finish line first, without running out of their tiny allocation of energy.

Energy Cooperation ,
Energy Economy ,
Oil & Gas

Malaysia’s Oil Giant Looks to Americas to Increase Oil Reserves

29 April 2019

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Malaysia

Malaysia’s state-owned oil company is banking on the Americas to help raise reserves and maintain production rates as wells in its Southeast Asian home market continue their natural declines.

Petroliam Nasional Bhd., known as Petronas, will allocate a larger share of its future capital expenditure toward projects stretching from Canada to Brazil as oil prices recover from the 2014 crash and as the company completes a $27 billion refinery and petrochemicals project at home, Chief Executive Officer Wan Zulkiflee Wan Ariffin said. The producer last week agreed to buy stakes in two offshore fields in Brazil, further expanding its Americas portfolio.

“There is a lot of new opportunity for us in that part of the world,” Wan Zulkiflee said in an interview Friday on the 83rd floor of the Petronas Towers in Kuala Lumpur, adding that the shifting focus doesn’t mean the company is leaving its home country. Petronas still has “many more projects lined up” in Malaysia, including plans to boost spending on renewable energy, he said.

Petronas typically allocates 45 billion ringgit ($10.9 billion) to 55 billion ringgit on capital expenditure every year and upstream projects will have “a bigger chunk” of that going forward, Wan Zulkiflee said. One of those to get a slice of the spending boost will be a liquefied natural gas export venture in western Canada with Royal Dutch Shell Plc.

Drilling Boost

Petronas last year agreed to buy a 25 percent stake in the C$40 billion LNG Canada project. Construction costs will increase over the next few years and Petronas will need to boost spending on gas drilling, Wan Zulkiflee said. The company also plans to invest $2.3 billion over four years in Argentina’s Vaca Muerta shale oil fields with state-controlled YPF SA, and has interests in 10 offshore blocks in Mexico. Drilling in Mexico will begin in the third quarter.

The purchase of stakes in Brazilian oil fields from Petroleo Brasileiro SA for $1.29 billion will bring commitments for more spending as the companies drill to boost production, Wan Zulkiflee said. Still, more spending doesn’t mean more borrowing. The company has no plans to tap the bond market and is cash-rich, he said. Petronas had 172.5 billion ringgit of cash and cash equivalents as at Dec. 31, according to its latest financial statement.

Petronas is also looking to build up its renewable business. The company made its first foray into cleaner energy this month after agreeing to buy Amplus Energy Solutions Pte from I Squared Capital, amassing 500 megawatts of solar power in operation or under development.

Petronas plans to set aside as much as 5 percent of its annual capex toward this segment and will be looking at further opportunities in Malaysia, focusing on solar and wind, Wan Zulkiflee said.

Renewables

Solar Philippines opens 150-MW plant in Tarlac

28 April 2019

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Philippines

Renewable energy developer Solar Philippines said over the weekend its 150-megawatt Tarlac solar power project started supplying the Luzon grid. Solar Philippines president Leandro Leviste said in a statement over the weekend the Tarlac solar farm at full capacity of 150 MW could help address the Luzon grid’s power shortage, which in recent days ranged from 100 to 200 MW. Leviste said the additional supply meant averting rotating blackouts for up to 500,000 households, bigger than the entire residential demand of Tarlac. “We are inspired to think that our actions are making a tangible difference for the Philippines, and will intensify our efforts to bring low-cost solar energy to every Filipino,” said Leviste. Unscheduled and forced shutdowns of power plants have resulted in rotating blackouts and red and yellow alerts this month. These plant outages are also expected to push up electricity rates. Solar Philippines’ Tarlac solar project is currently the largest generation facility of its kind in the country.

The project has an approved power supply agreement with Manila Electric Co. at P2.9999 per kilowatt-hour, making it the lowest cost plant in the Philippines and the lowest in Southeast Asia. Leviste said the entry of lower priced solar was timely and appropriate. Wholesale Electricity Spot Market prices typically go up and exceed P7 per kWh during the dry months. WESM is the country’s trading floor of electricity, where prices go up when demand is high and the supply is tight. To keep costs low, the Tarlac project uses panels manufactured at Solar Philippines’ Batangas facility, the first Filipino factory. Leviste earlier said the solar project would be “the first in the Philippines at a lower cost than coal, the first with battery storage for 24-hour power, and the first to demonstrate that renewable energy as mid-merit and even base load.”

Renewables

Two geothermal service contracts of Basic Energy terminated in the Philippines

28 April 2019

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Philippines

In a public disclosure, Philippines-based Basic Energy Corp. reports that the country’s Department of Energy has cancelled its geothermal service contract for the East Mankayan geothermal projects, covering certain areas in the provinces of Benguet, Ifugao and Mountain Province in Luzon.

The Geothermal Service Contract (GSC) 2013-02-041 was awarded on Feb. 5, 2013, had a five-year pre-development phase.

During that period, the company said it conducted the necessary geological and geophysical studies to determine the potential of the geothermal resource and information and education campaign in the affected areas.

The company though ran into challenges due to local opposition from indigenous people and requested a suspension of obligations until those issues were solved in January 2018. The DOE acted on the request, terminating the service contract retroactive on February 8, 2018.

Meanwhile, the DoE denied the company’s request for a moratorium for GSC 2013-11-048, which covers the West Bulusan Geothermal Project, for which the contract was also terminated in October 19, 2018.

Basic Energy reports though, having “filed a motion for reconsideration of the said termination, which is now pending resolution of [the] DoE,”

The firm has other geothermal contracts in various parts of the country in Mariveles town, Bataan province; Iriga town, Camarines Sur and Albay provinces; and West Bulusan town, Sorsogon province.

Renewables

Ayala eyes more renewable projects in Vietnam

28 April 2019

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Vietnam

Ninh Thuan, Vietnam—AC Energy Inc., a unit of conglomerate Ayala Corp., plans to build more renewable projects here after recently completing a 330-megawatt solar farm, one of the biggest in Southeast Asia, in partnership with the BIM Group. The solar farm, comprising of three facilities with installed capacities of 30 MW, 250 MW and 50 MW, respectively, is the first project under BIM/AC Renewables, the renewable energy development platform of AC Energy and the BIM Group. “Vietnam is one of the Ayala group’s focus in renewable energy investments… We are very excited about Vietnam. We have already invested in the water sector here. This is a very large and meaningful investment for us and we want to continue more investments with the BIM Group particularly in the energy group,” said Ayala president and chief operating officer Fernando Zobel de Ayala. The BIM/AC Renewables solar farm, which sits on over 300 hectares of land, is one of the largest in Southeast Asia. It is equipped with the latest technology to ensure efficient operations. It is expected to generate 545 million kWh of renewable energy annually and generate income and jobs for the province of Ninh Thuan.

“I want to mention the importance of local partnerships and how happy we have been, also with BIM Group. There is no way, I think, that a foreign group can come to an area like this and tackle the kind of challenges that you have without a local partner,” said Ayala. The inauguration and ceremonial switch-on held on April 27 was led by Vietnam’s Deputy Prime Minister Vu Duc Dam, Ninth Thuan Provincial Party Secretary Nguyen Duc Thanh, Ninh Thuan Chairman of People’s Committee, Luu Xuan Vinh, Ayala and BIM Group chairman Doan Quoc Viet. “We needed a partner who had a problem-solving mindset… who tried to find solutions in mind and AC was that, we couldn’t find a better partner… We’ve been very happy with them,” said BIM Group deputy chairman Doan Quoc Huy. Construction of the $294-million solar project, which started in January last year, took 14 months and employed approximately 2,000 workers throughout the construction phase. Rizal Commercial Banking Corp. was the sole lender, providing non-recourse project financing of $232 million.

Electricity/Power Grid

No brownouts on election day, energy officials

27 April 2019

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Philippines

There will be no power interruptions on Election Day, but there is no assurance of sufficient supply after May 13, Energy officials told lawmakers Friday amid reports of low electricity supply in the country. Meanwhile, more than 4,700 people have been arrested since the start of the Commission on Elections’ gun ban on Jan. 13, the Philippine National Police said Friday. PNP spokesman Bernard Banac said as of 6 a.m. Friday a total of 4,729 people had been arrested in 576,983 police operations since the gun ban’s implementation. Of that number, 2,634 were intercepted during police patrol responses, 977 through search warrants and 723 during the “Oplan Bakal, Sita, Galugad” operations. Banac said the total included 331 people arrested in checkpoints and 64 others during the serving of warrants of arrest. Tte Commission on Elections said Friday it will use 85,000 Vote Counting Machines for the May 13 elections, which would be fewer than the 92,000 VCMs used in the 2016 elections. Comelec Director Teopisto Elnas Jr., deputy project director of the poll body’s Project Management Office for the May 13 polls, said the number of VCMs for the 2019 midterm elections would be fewer because the number of registered voters in a clustered precinct had been increased from 800 voters to 1,000 per clustered precinct. “We decided to purchase the VCMs for the May 2019 polls, and the number of registered voters also increased. It is impossible that the number of voters per precinct will be the same. It cannot accommodate with the same allocation,” Elnas said. He also assured the public that special voting centers would also be available for the indigenous peoples, persons with disabilities and senior citizens for the May midterm polls. “We will have separate and accessible voting centers for IP voters. We will have 33 accessible voting centers spread out in Bulacan, Aurora, Occidental Mindoro, Oriental Mindoro, Palawan, and South Cotabato,” Elnas said. Each voting center would have one polling place for PWDs and senior citizens, meaning each school or particular facility used for the conduct of polls across the country will have one station for PWDs and senior citizens, he added.

Officials expect low power consumption on Election Day, which falls on a Monday since it was declared a special non-working holiday. “We expect sufficient supply. The worry we’re having is the counting day, transmission day,” Energy Assistant Secretary Redentor Delola told members of the Senate Committee on Energy. The National Grid Corporation of the Philippines said Tuesday parts of Luzon would experience rolling blackouts due to low power reserves. The peak demand in the Philippines’ largest island is expected at 10,536 MW, and the available capacity is at 10,576 MW, the company said. Meralco, the largest power distributor, earlier said it was preparing contingency measures in case several poll precincts would be hit by rolling blackouts on May 13. With Vito Barcelo

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