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  • Energy Cooperation
11 March 2019

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  • Philippines

ISRAELI firm Ratio Petroleum Ltd. wants to partner with Philippine National Oil Company-Explo-ration Corp. (PNOC-EC) to jointly explore possible petroleum reserves in the east Palawan basin.

Ratio Petroleum was awarded Service Contract (SC) No. 76 covering Area 4 of Eastern Palawan, as part of the Department of Energy’s (DOE) fifth Philippine Energy Contracting Round (PECR), launched in May 2014.

SC 76 spans 416,000 hectares across the east Palawan basin for potential oil and gas resources. The seven-year exploration project is expected to cost $34.35 million, which will be used for studies, data gathering and drilling activities over the initial seven-year contract period.

DOE Undersecretary Donato Marcos said Ratio Petroleum proposed to expand the area in which exploration activities will be conducted and enter into a farm-in agreement with  PNOC-EC.

“They have expressed interest in nominating for the expansion of SC 76 to get a maximum area of 1.5 million hectares, farming in with PNOC-EC and also looking at joint nomination with EC. They have expressed serious interest,” said Marcos.

DOE Secretary Alfonso Cusi said representatives of Ration Petroleum are in the country to discuss their plans. “Ratio people are in town since Monday,” said Cusi last week.

There are currently 23 active petroleum service contracts in the Philippines with the following developers: Shell Philippines Exploration, Total E&P, PNOC-EC, Nido Petroleum, Philodrill, PXP Energy and Galoc Production Company.

The largest and most successful natural gas industrial project in Philippine history is the Malampaya Deep Water Gas-to-Power Project.

Ratio Petroleum was established in 1992 and has a number of large-scale operations at the Levant basin in the eastern Mediterranean Sea, off the coast of Israel, as well as offshore operations in the Republic of Malta and the Co-operative Republic of Guyana.

19 firms

Meanwhile, Marcos said the agency has received firm interests from nine firms to explore pre-determined areas for possible oil and gas reserve, while 10 firms have nominated their respective areas of interest under the Philippine Conventional Energy Contracting Program (PCECP), a hybrid of PECR.

The DOE is aggressively pursuing the implementation of the PCECP so the country could establish a strong “Explore, Explore, Explore” program.

He did not identify the 19 interested firms.

Under the PCECP, there are two modes of application potential investors may pursue.

First, interested parties may wish to bid on the 14 Pre-Determined Areas identified by the DOE (one in Cagayan, three in East Palawan, three in Sulu Sea, two in Agusan-Davao, one in Cotabato and four in West Luzon). The application period is 180 days, and was officially opened last November 22.

Alternatively, the applicants could also nominate and publish other areas of interest. In this mode, applications could be submitted at any time of the year, and would be subjected to a 60-day challenge period.

All accepted applications shall be evaluated by the DOE Centralized Review and Evaluation Committee based on the criteria pursuant to Department Circular No. DC2017-12-0017.

  • Oil & Gas
11 March 2019

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  • Philippines

MANILA, Philippines — More foreign firms are keen on investing in the country’s oil and gas exploration sector, according to the Department of Energy (DOE).

Foreign firms have expressed interest in pre-determined areas (PDAs) offered under Philippine Conventional Energy Contracting Program (PCECP), DOE Undersecretary Donato Marcos said.

“For the PDAs, there are nine nominations which are mostly foreign companies, while there are 10 parties who have nominated new areas for oil and gas exploration activities,” he said.

The PCECP offers 14 pre-determined areas and the option for investors to propose their own exploration area, making oil and gas exploration a dynamic investment prospect for players in the energy sector.

Among the foreign companies with serious interest in the Philippine oil and gas sector is Israeli firm Ratio Petroleum Ltd., DOE Secretary Alfonso Cusi said.

“Ratio Petroleum has been in town since (last) Monday and they are expressing interest in nominating many areas,” he said.

Ratio Petroleum is the operator of Service Contract (SC) 76, the first contract signed by President Duterte in October last year. It holds 100 percent of the rights in the block.

Their interest is focused on expanding its existing contract and is also looking at another prospect with government.

“One of their concern is the expansion of SC 76 to get maximum area of one million and 500 hectares,” Marcos said.

SC 76 covers approximately 4,160 square kilometers at water depths ranging between 900 and 1,700 meters.

“The other one is farming in with PNOC-EC (PNOC Exploration Corp.) in SC 37. It’s on-shore. It is also looking at joint nomination with PNOC-EC (under PCECP),” Marcos said.

SC 37 was awarded to PNOC EC in July 1990, covering an area of 360 km2, originally from 2,200 km2.

Another foreign firm looking at projects in the Philippines with Ratio is Delek Group, also an Israel-based firm focused on the gas sector, Cusi said.

“They have two interests, one is to drill, in case Ratio will drill in the country. The other one is to nominate also,” Marcos said.

The DOE undersecretary also said Rexxon Group has also signified interest in SC 59 offshore Palawan, also of PNOC-EC.

SC 59 was awarded to PNOC EC in January 2006 which covers an area of 14,760 km2 in offshore Southwest Palawan and is located north of the deep-water gas discoveries in offshore Malaysia.

Meanwhile, ExxonMobil has participated one of the PDAs under PCECP, Marcos said.

The DOE has been pushing for oil and gas exploration and development in the country and launched the PCECP in November last year as part of an intensified thrust to develop the petroleum exploration industry for global competitiveness.

Presently, there are only 23 active Petroleum Service Contracts (PSC) in the country, with the Malampaya Deep Water Gas-to-Power Project as the most successful PSC stemming from the previous Philippine Energy Contracting Round.

The contract for the Malampaya gas field in northwest Palawan will expire in 2024 but this can be applied for extension with the DOE.

  • Renewables
11 March 2019

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  • Malaysia

KUALA LUMPUR: Tenaga Nasional Bhd (TNB), through its wholly owned subsidiary, TNBX Sdn Bhd (TNBX) and the Public Works Department (PWD) are undertaking a feasibility study on the installation of rooftop solar on PWD buildings under TNB Solar Energy Purchase Programme.

The study is one of the five areas of collaboration that both parties are considering under a memorandum of understanding (MoU) signed yesterday.

The non-binding and non-exclusive three-year MoU was signed by TNBX managing director, Ir. Nirinder Singh Johl while PWD was represented by deputy director-general (specialist sector), Ir. Kamaluddin Abdul Rashid.

Ir. Nirinder described the signing of the MoU as a teamwork of two like-minded entities, keen to address energy management issues.

“Hopefully, this initiative will raise awareness for a greater need for energy management in Malaysia,” he said in a statement.

Under the MoU, TNB would invest, design, install and maintain the solar PV system on PWD buildings throughout a 20 to 25 year contract period. With the installation of the rooftop solar photovoltaic (PV) system with TNBX, PWD would enjoy the benefits of clean electricity at zero capital upfront cost.

PWD would also be billed for the electricity generated from the solar PV system at a rate that is lower than the normal TNB electricity tariff. In addition, PWD can sell any excess energy generated from the solar PV back to TNB under the Net Energy Metering scheme.

Hence, through this proposed TNB Solar Energy Purchase Program, PWD would benefit from clean electricity to meet its carbon reduction target without incurring any capital and gain from immediate overall electricity cost savings at minimal risk.

Both parties also seek mutual benefits in four other areas namely, promotion of green technology by focusing on joint intentions in public awareness and outreach; smart nation by embarking on industrial revolution 4.0 smart city solutions; precision operation by optimising asset management; and research excellence by conducting continuous research initiatives in renewable energy (RE) technology.

TNB is targeting to generate 1,700MW of RE by 2025 which would be in line with the government’s target of generating 20% of RE resources by 2030.

  • Renewables
11 March 2019

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  • Malaysia

KUALA LUMPUR (March 11): UiTM Energy & Facilities Sdn Bhd (UEFSB) has signed a Letter of Intent (LOI) with Petroliam Nasional Bhd’s (Petronas) New Energy unit, to collaborate and jointly develop large scale solar photovoltaic power plants and on-campus energy optimisation and solar rooftop projects.

UEFSB is a wholly-owned subsidiary of UiTM Holdings Sdn Bhd (UHSB), the investment arm of Universiti Teknologi MARA (UiTM).

Under the agreement, both parties aim to leverage on each other’s strengths and experiences to jointly develop and execute renewable energy and energy optimisation projects.

“We are looking at opportunities to develop large scale solar photovoltaic power plants and implement energy efficiency and optimisation programmes, as well as the installation of solar generators on the rooftop of selected buildings in UiTM campuses nationwide.

“With over 30 campuses throughout the country, UiTM can potentially save up to 30 per cent on its annual energy expenditure,” according to a joint statement by both entities here today.

Present at the LOI signing ceremony here on March 7 were UiTM vice chancellor Prof Ir Dr Mohd Azraai Kassim, Petronas’ senior vice president of corporate strategy Mohamed Firouz Asnan, UiTM Holdings group chief executive officer Norzaimah Maarof and Petronas’ head of new energy, Dr Jay Mariyappan.

Mohd Azraai said: “This collaboration will strengthen UiTM’s competitive advantage in the higher education sector to become a premier university of outstanding commercial growth, towards a greater sustainable future.”

UHSB currently owns a 61 megawatt (MW) large scale solar photovoltaic power plant in Gambang, Pahang, which commenced operations on March 8, 2019, and is expected to generate over 80,000 MWh of clean energy per annum and yield RM650 million in revenue over the next 21 years.

UHSB has also commenced development of its second 31 MW large scale solar photovoltaic power plant in Pasir Gudang, Johor.

The solar plant, when ready in the first quarter 2020, is expected to generate over 40,000 MWh of clean energy and yield RM315 million in revenue over 21 years, with the potential of avoiding 28,000 tonnes of carbon emission every year.

“By 2020, UiTM, via the two large scale solar power plants with a combined capacity of 92MW, will be contributing to almost four per cent of Malaysia’s renewable energy production,” said Mohd Azraai.

Meanwhile, Mohamed Firouz said the move into clean energy is seen as crucial to securing Petronas’ business sustainability.

“It is part of the company’s ‘Step Out’ strategy into new business areas that open up with the transformation of the energy sector, and plays a role in protecting our business from future disruptions,” he added.

Petronas is already working on a number of initiatives in Malaysia which aim to help the government meet its target for 20 per cent of the country’s electricity to be generated by renewable sources by 2025.

These include a solar project on the rooftop of Suria KLCC shopping mall here, a 10MW solar photovoltaic plant in Gebeng, Pahang, and installation and application of solar power at Petronas’ buildings and assets nationwide.

  • Renewables
11 March 2019

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  • Vietnam

Two PV plants boasting a joint 100MWp in capacity have launched operations in Vietnam, reportedly becoming the largest PV project ever to go live in the country.

Deputy prime minister Truong Hoa Binh was amongst those attending the opening of Srepek 1 and Quang Minh plants at the Ea Wer commune (Dak Lak province), towards the south of the country.

The projects, built across a 120-hectare site, required US$94.6 million in investment. Construction began on 19 October 2018, followed by the commercial kick-off on 31 January 2019.

According to Vietnamese authorities, the projects will be followed by others in the Dak Lak province. With irradiation reaching some 1,900kW per square kilometre every year, the area boasts “huge potential” for solar, the government believes.

Speaking to state media, deputy prime minister Truong Hoa Binh was quoted as urging the “relevant agencies and localities” to continue creating a favourable environment for investors to back solar.

The PV projects’ reported status as Vietnam’s largest so far looks set to last little. A 420MW facility currently under construction in the Tay Ninh province could become, after its planned launch date of June 2019, Southeast Asia’s biggest to date.

The list of projects announced in recent years also includes B. Grimm’s 257MW farm (Phu Yen province) and Sunseap JV’s 186MW scheme (Ninh Thuan province)

  • Bioenergy
11 March 2019

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  • Indonesia

Energy and Mineral Resources Minister Ignasius Jonan says the government is giving state-owned electricity company PLN two years to fuel all diesel power plants in the country with biodiesel made from crude palm oil (CPO).

Speaking before hundreds of students and other Indonesians living in Japan, Jonan said in Tokyo on Sunday that PLN was currently carrying out a study on how to convert CPO into fuel that could be used for diesel power plants.

“PLN is trying to use palm oil. Currently, the Plaju refinery [in South Sumatra] converts palm oil into diesel fuel,” said Jonan in a statement received on Monday.

Jonan was in Japan to explain to the Indonesians in the country the achievements made in energy development during the four years President Joko “Jokowi” Widodo has been in office. Indonesian Ambassador to Japan Arifin Tasrif also attended the event at the Indonesian Embassy.

The government had made it mandatory for refineries to produce 20 percent blended biodiesel ( B20 ) since September last year and currently it has been conducting research into the use of B100 biodiesel as the major source of energy in trying to reduce the dependency on fossil fuels.

Jonan said the main aim of the Jokowi administration was to continue the energy program of previous governments with an emphases on energy distribution to remote areas. To implement the program, the government distributed solar-powered lamps (LTSHE) to 2,519 villages, particularly those not connected to any PLN electricity grid.

Jonan said the LTSHE program contributed 0.12 percent to the national electrification program. He added that the distribution of such technology was needed since PLN electricity networks could not be constructed any time soon in those areas because of geographical challenges. (bbn)

  • Electricity/Power Grid
11 March 2019

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  • Myanmar

Doosan Engineering and Construction (E&C) announced on March 11 that it received a letter of acceptance from the Ministry of Electricity and Energy of Myanmar (MoEE) on March 7 for a 100-billion-won project to build the Taungwoo-Kamanat Transmission Line.

The project is to construct 368 500-kV steel towers in a 174 km section from Taungungoo to Kamanat in Myanmar with a loan from the Economic Development and Cooperation Fund (EDCF).

The construction project costs 100.8 billion won (US$89.58 million), which means that it is large as a power transmission line construction project. Doosan E&C receives 20 percent of the contract amount as a down payment. The project will run for 27 months after the contract is signed.

Doosan E&C built a 230 kV transmission line in Cambodia from 2011 to 2012.

Myanmar is 6.5 times as wide as Korea but the total length of its transmission lines is one third of Korea’s. The Myanmar government is pursuing a development plan with the goal of meeting 100 percent of electricity demand by 2030.

  • Electricity/Power Grid
10 March 2019

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  • Philippines

MANILA, Philippines — State-run National Electrification Administration (NEA) aims to meet its electricity consumer connections target of 13 million this year ahead of its anniversary in August.

NEA said latest official figures showed that the total electricity consumer connections within the coverage areas of 121 electric cooperatives (ECs) nationwide have already reached 12.88 million as of Jan. 31, 2019, which is already 99 percent of the 13-million target.

According to the NEA Information Technology and Communication Services department, majority of these are in Luzon with 6.07 million  consumer connections, followed by Visayas with 3.45 million, and Mindanao with 3.36 million connections.

NEA administrator Edgardo Masongsong said the agency, in close coordination with the ECs, is exploring all avenues to fasttrack the consumer connection in time for the agency’s 50th anniversary celebration in August.

“More than the goal of reaching this milestone, we want to be instrumental in achieving the government’s long-term vision to eliminate poverty in the country as enshrined in the AmBisyon Natin 2040 program,” Masongsong said.

The Duterte government’s AmBisyon Natin 2040 aims to transform the country into a prosperous middle-class society free of poverty by 2040.

Since 1969, the NEA, together with the ECs being the implementing arm of the government, has been at the forefront of bringing electricity to rural and remote areas through the implementation of the rural electrification program, thereby promoting economic growth and social development in the countryside.

When Masongsong assumed the NEA leadership, he came out with the seven-point electrification agenda, which includes, among others, the completion of the rural electrification program.

For the past 50 years, all the 78 provinces covering 90 cities and 1,385 municipalities in the country had been successfully electrified by NEA and 121 ECs.

Moreover, a total of 36,057 of the 36,065 barangays nationwide have attained 100 percent energization.

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