News Clipping Archive - Page 1188 of 1226

Oil & Gas

Amid oil price scare, minister says Malaysia not too dependent on crude revenue

22 November 2018

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Malaysia

KUALA LUMPUR, Nov 16 — Minister of Finance Lim Guan Eng insisted today that Putrajaya’s finances will not be affected if oil prices drop.

This comes amid concerns over the commodity’s near-term prospects as uncertainties dog the global economic outlook for next year.

Oil accounts for up to 14 per cent of next year’s Budget revenue projection but Malaysia had recently weathered a severe six-month gas supply disruption that took a big toll on revenue, which Lim said reflected the economy’s resilience against any external shock.

The Bagan MP pointed to the country’s mature domestic financial market and political stability as the buffer.

The Industrial Production Index saw the overall index on average grow just 2.2 per cent year-on-year (YoY) in the May-September period, while the mining sub-index contracted by 5.3 per cent YoY on average.

The same supply shock is expected to continue until the middle of next year.

“Given the limited benefits and the less than expected revenue received by the Federal Government from rising energy prices so far, the continued economic resilience

proves that Malaysia is not as dependent on energy prices as in the past,” Lim said in a statement.

Gas exports took a major hit from the second quarter of this year following a critical production breakdown in Kebabangan gas field in Sabah, directly affecting GDP growth and petroleum income from tax revenue, Lim said.

Natural gas production, on the other hand, contracted by 10 per cent in the second quarter followed by a 3 per cent contraction in the third, based on official estimates Lim provided. Crude oil and condensates production contracted by 2 per cent in the same period.

As a result, second- and third-quarter revenue from petroleum-related taxes contracted by 11 and a whopping 27 per cent respectively.

Lim said major repairs and assessment works are still ongoing and production is only expected to return to full capacity by the middle of next year at the latest.

Drastic fluctuations in oil prices in recent weeks have prompted analysts to speculate a possible Budget revision although Putrajaya has maintained an optimistic outlook, assuring concerned investors of the country’s “strong fundamentals”.

“Malaysia has a well-diversified economy with 23 per cent of its GDP contributed by the manufacturing sector and 55 per cent by the service sector,” Lim said today, reiterating past statements.

“Mining-related activities form only 9 per cent of the GDP.”

The minister then said Malaysia should not be compared to Saudi Arabia, where mining makes up 25 per cent of the economy.

“It is inappropriate to compare the two countries side-by-side given the stark difference between the two economies,” he said.

Brent crude oil futures were at US$67.49 (RM282.86) per barrel at 0747 GMT, up 87 cents, or 1.3 per cent from their last close, according to Reuters data.

US West Texas Intermediate (WTI) crude oil futures were at US$56.96 per barrel, up 50 cents, or 0.9 per cent.

But prices were mainly supported by expectations the Organisation of the Petroleum Exporting Countries (Opec) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.

Others ,
Renewables

Power Surge

22 November 2018

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Thailand

In the past few months, Thailand has seen a rapid growth in independent solar power producers that are using blockchain-enabled technology to trade electricity between themselves. Blockchain, the distributed ledger technology that underpins bitcoin currency, offers a transparent way to handle complex transactions between users, producers, and even traders and utilities. It has been revolutionising finance by bringing about decentralisation, and in countries like Thailand, blockchain is enabling households connected to microgrids to conduct peer-to-peer transactions, buying and selling surplus electricity to each other instead of through traditional providers. According to media reports, a growing number of Thai companies are using blockchain to help home-owners trade electricity from their own rooftop solar systems. Among them is a blockchain-linked solar power system in the capital of Bangkok that is among the world’s largest peer-to-peer renewable energy trading platforms using the fast-evolving technology, reports Reuters. The system, offered by a subsidiary of state-owned oil refiner Bangchak, real estate developer Sansiri, and an Australian blockchain company called Power Ledger, has a total generating capacity of 635 KW that can be traded via Bangkok city’s electricity grid between a mall, a school, a dental hospital and an apartment complex.

The World Energy Council has predicted that this kind of decentralised energy will grow to about a fourth of the market in 2025 from 5 percent today, according to Reuters. Thailand, Southeast Asia’s leading developer of renewable energy, aims to have it account for 30 percent of final energy consumption by 2036. As a part of this, the energy ministry is encouraging community renewable energy projects to reduce fossil fuel usage, and the regulator is drafting new rules to permit the trade of energy. “Thai regulators have been quite innovative and supportive of new technological advancements in an effort to implement the Thailand 4.0 initiative which is designed to support the development of ICT infrastructure, financial technology and to bolster online security,” says Nopamon T. Intralib, an associate at Thai law firm Chandler MHM. “This is largely because Thai regulators are aware that a favourable and sound legal and regulatory framework is the pillar supporting the development of the country’s growth in this space.” “Thailand 4.0 is now materialising through incentive programs, and a focus on making Thailand more attractive for investors in ICT industries,” Nopamon adds. “In correlation with Thailand 4.0, blockchain technology is a significant part of the growth of a global digital economy.”

REGULATORY ISSUES

Nopamon notes that currently, Thai regulators have not issued any regulations to address or regulate blockchain-powered peer-to-peer (P2P) electricity generation and distribution. However, that the Metropolitan Electricity Authority has allowed access to its network in the abovementioned Bangkok pilot project. “The Energy Regulatory Commission is closely monitoring this trial to determine feasibility, further implementation, and applicability of such systems,” Nopamon says. “The largest challenges to increased implementation are the lack of regulations in place for blockchain P2P power generation, and somewhat limited information being available to players interested in possible investment regarding what those regulations will entail,” she adds. “Available information suggests that the Electricity Generating Authority of Thailand (EGAT) may require fees from power producers trading on a P2P platform.” Nonetheless, Thai regulators understand that the legal framework must encourage innovation and as such, many public hearings are being conducted for the new draft laws, says Nopamon. “At the same time, the private sector is encouraged to consult and share information and understanding regarding new technology and the potential impact of related developments on these draft laws and regulations,” she notes. “There are also those who view that the lack of regulations may enable more experimentation of new products without legal barriers at such an early stage in the development process.” Threenuch Bunruangthaworn, executive partner, and Panwadi Maniwat, senior associate, at ZICO Law say that as the government is set to allow the private sector to sell the electricity by bypassing EGAT, it will be losing out on revenue from what was previously a monopoly business. “The government will put some regulations in place, with electricity providers needing to meet some requirements if they want to compete,” they say. “Solar power producers will probably need a retail license from the authorities, which means that they will need to meet some criteria. They will probably need to report the amount of power they sell and the fees they charge, on the basis of which they will have to pay fees to the authorities.”

LAW FIRMS INVOLVED

Nopamon of Chandler MHM says that the regulatory landscape in Thailand is no longer reactively addressing the development of new, digital investment opportunities, and industries. “Certain industries have been faster than others in development of laws and regulations to address new technology – such as financial institutions and start-ups. For example, certain products and projects can be experimented with under the regulatory ‘sandbox’ environment,” she says. The energy industry in Thailand appears to be the next industry interested in changing how power generation and distribution is managed, she adds. “Chandler MHM has had a robust renewable energy practice for decades and has close ties with key regulators. As with any emerging market, the most important aspects for maintaining the best position possible for assisting clients, is to continuously be aware of new laws, regulations, and more importantly, to have the background and capacity to advise on how regulators may apply and interpret these laws and regulations. This is also applicable to an evolving energy market,” says Nopamon. Threenuch and Panwadi Maniwat of ZICO Law say that normally advise developers in real estate projects, assisting them in obtain the relevant licenses to operate the project. “For these solar trading projects, you might need to acquire technology from a foreign country, and clients will need some help in dealing with foreign entities.” They add that they also expect to work with Board of Investment and assist clients in applying for BOI certificates for foreign investors and foreign operators that make investments into this industry, so that these clients can obtain the appropriate foreign registration and licenses to do business.

Energy Efficiency

Gaming to help cut electricity usage

21 November 2018

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Singapore

The rising cost of electricity sends an important message that the availability of electricity should not be taken for granted (Electricity tariffs to rise by 2.1% for Oct to Dec; Sept 30).

As a carbon-based economy, Singapore requires more energy as it continues to prosper, while emitting a large amount of carbon dioxide in the process. Green technology can produce clean energy with little to no carbon footprint. However, we cannot solely rely on green technology as it is simply insufficient.

One solution could be the emerging concept of “eco-gamification”, which leverages the principles of gaming to engage people in activities where engagement has been traditionally difficult to achieve. One example is pro-environmental action.

Opower is a software company that provides a customer engagement platform for utilities.

Research conducted by Opower shows that moral suasion and financial incentives do not motivate people to act and use less electricity. Rather, social pressure can be a much stronger motivating factor.

Opower developed a mobile app that works on the idea of a social challenge. By constantly reminding users how much electricity their neighbours are using, it has proven to be very effective in reducing energy consumption.

These forms of gamification could be applied to other resources as well, such as water.

Many of us are practical citizens. We look forward to reducing costs.

Why not save the environment while reducing our utility bill?

Perhaps, home owners could be made to pay their utility bills via the app. With the rising cost of living, consumers will be more inclined to match their neighbour’s electricity consumption.

Energy use is driving climate change, and it is up to us to stop it.

Others

Singapore Brings Environmental Revolution Through Blockchain

21 November 2018

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Singapore

Singapore became one of the first countries to implement the blockchain technology for its environmental concerns. The Singapore Power (SP) Group was responsible for setting up the decentralized Energy system in Singapore. The creator of the utility is of the belief that an absence of any centralized form of entity in the Energy Trading will lead to a more convenient and transparency in the Energy sector.

Renewable Energy Certificate (REC) is the trading tender on this blockchain. One REC is equivalent to one unit of green energy produced by solar and wind power. To run a business, one needs to have a certain number of ‘Green Points,’ companies buy these RECs to balance out their non-green energy production. It is just like Carbon trading around the world, but without a centralized system to cut the middleman.

How Is Renewable Energy Certificate (REC) traded on the Blockchain?

Let us understand how REC works in this system more efficiently. Suppose, you want to open a restaurant in Singapore, but to do that your carbon footprint or the amount of carbon produced by you should be balanced out by buying REC or green tokens. The minimum level of carbon released or its equivalent in REC is fixed by the blockchain protocol. Thus no one can bribe their way into the system. They would only be able to run their restaurant if their carbon footprint is balanced out by the REC.

SP group CEO Wong Kim Yin says,

“A consumer in Singapore who wishes to buy green energy can now, through blockchain-powered REC trading, purchase a REC from a hydro-producer based in Laos,”

Importance of Decentralized System

The Energy trading field was marred by high costs of verification for RECs which made it almost impossible to regulate the trading conveniently. But, with a decentralized form of REC, there is no confirmation required. The Power group, SP, can contact a company which is responsible for measurement of Carbon Footprint. The level of carbon produced will be set against the green tokens, so a pre-programmed setup will automatically start once you buy enough REC to negate your carbon output.

So, we can see how blockchain is beyond Cryptocurrencies and Trading Exchanges. The blockchain is a decentralized ledger system, where everyone on the network has a copy of it. Not, only that, each one can download the complete database on their hard drive, eliminating the need of a central system to control it.

Blockchain as technology is so versatile that it can be used anywhere with two or more than two parties needing a form of exchange. Since the Tender or tokens are generated by pre-set protocol, chances of manipulation are almost close to zero.

While talking about the benefits of Blockchain implementation in the Energy sector, SP group CEO said,

“In the past, you have big power stations in the centralized model, and you would transmit power to the households. In the future, you would have solar panels, and you would have batteries. In that model, the power system would be a lot more robust.”

Final Thoughts

Blockchain Technology is the backbone for the Cryptocurrencies, and most of us often confuse between the two. The blockchain is technology while Cryptocurrency is the implementation of the blockchain. So, you can apply Blockchain to any system with a centralized entity, for example, Banking, Healthcare, Voting, refund systems and many more.

Renewables

Auction for early stage geothermal development areas in West Sumatra, Indonesia

21 November 2018

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Indonesia

Indonesia’s Ministry of Energy and Mineral Resources through EBTKE is launching an auction for geothermal preliminary and exploration survey areas (WPSPE) in Bonjol, Pasaman Regency in West Sumatra Province.

The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of New and Renewable Energy and Energy Concertation (EBTKE) again auctions geothermal Preliminary and Exploration (WPSPE) Survey Areas.

The WPSPE offered is WPSPE Bonjol, located in Pasaman Regency, West Sumatra Province. The potential capacity is estimated at 200 MW with a land area of 7,441 hectares.

ESDM Director General of Geothermal Energy, Ministry of Energy and Mineral Resources Ida Nuryatin Finahari is optimistic that the offered block will be sought by investors such as WPSPE which was auctioned before. Evidently as many as eight WPSPE that have been auctioned so far, have been sold in full.

“There must be someone who is interested. The one who has shown interest is there. Wait for another month, there is only a list of proposals,” said Ida, recently.

Ida said the implementation of the offer will last for 1 month. The auction document must be submitted no later than the interested business entity on November 21, 2018.

The business entity designated as the winner will conduct a Pre-Transaction Agreement (PTA) with PT PLN (Persero) after exploration is complete and a Geothermal Permit is issued. The reference price of electricity in the PTA referred to follows the provisions of the legislation.

Oil & Gas

Singapore shares slip as oil tumbles, Malaysia edges up

21 November 2018

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Malaysia ,
Singapore

Weak crude oil prices weigh on rig-builders, petroleum services firms

KUALA LUMPUR (Nikkei Markets) — Singapore shares fell Wednesday as investors grappled with lower crude oil prices that weighed on rigbuilders and other firms servicing the industry in a broadly weak market. Malaysia eked out tiny gain.

The Straits Times Index closed down 0.3% at 3043.19 amid a 3.1% drop in Yangzijiang Shipbuilding (Holdings). The FBM KLCI ended up 0.1% at 1688.41 as national electric utility Tenaga Nasional’s 0.8 % gain pushed the index higher in the final hour of trading, helping to offset a 4% loss in oil storage firm Dialog.

“From Asian perspective, where falling oil prices had been helping Asian FX to firm against the USD, from now on, that relationship will likely fade away,” said ING Chief Economist Robert Carnell. He flagged risk to Asia’s growth if oil-producing nations cut purchases of Asia’s manufactured output.

The Nikkei Asia300 Index dipped 0.4% as investors await developments on bilateral trade between the U.S. and China. The Dow Jones Industrial Average and the S&P 500 declined overnight, while the Nasdaq Composite ended little changed.

Crude for December delivery tumbled more than 7% to $55.69 a barrel overnight on the New York Mercantile Exchange amid rising production and a softening in U.S. oil sanctions on Iran. Brent, the global benchmark for crude oil, was up 1.2% to $66.26 a barrel in Wednesday trading.

Saudi Arabia and the Organization of the Petroleum Exporting Countries, in signalling production cut, warned that a supply glut could emerge in 2019 as demand slows, while rivals increase output quicker than expected.

Hibiscus Petroleum and Reach Energy, which own oil production assets, fell 8.2% and 6.2% while the Bursa Malaysia Energy Index fell 2.6%. In Singapore, offshore rig builders SembCorp Marine and Keppel Corp. dropped 3% and 1.4% respectively.

In earnings news, Malaysia Building Society rose 2.1% after posting a 21.1% rise in third-quarter net profit helped by lower impairment allowance. Chemical Company of Malaysia lost 4.4% after reporting a 44.2% drop in third-quarter net profit due to a discontinued operation.

Singapore Airlines edged 0.1% lower after reporting an 81% slump in second quarter net profit to S$56.4 million ($40.9 million) in part due to higher jet fuel costs.

UMS Holdings lost 7% in Singapore after the semiconductor component manufacturer reported a 44% on-year fall in third quarter net profit to S$7.6 million due to slower sales.

Singaporean real estate developer UOL Group retreated nearly 1% after its third-quarter net profit plunged 85% on-year to S$92.8 million.

Pay TV operator Astro Malaysia Holdings and software company My E.G. Services fell 3.4% and 6.5% following exit from MSCI Global Standard Indexes. QL Resources added 1.4% on inclusion to the index.

Electricity/Power Grid ,
Oil & Gas

Thailand’s Gulf Energy and Mitsui to start working on 2.5GW combined-cycle power plant

21 November 2018

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Thailand

About $1.5b will be invested in the project.

Thailand’s energy producer Gulf Energy Development (Gulf) and the Public Japanese conglomerate Mitsui have agreed to start works on the 2,500MW Chonburi combined-cycle (CCGT) power plant in the Chonburi province of Thailand before the end of 2018. Approximately JPY170b ($1.5b) will be invested in the project, which will include four units of 625 MW each slated to become gradually operational between March 2021 and October 2022. The four M701JAC gas turbines will be supplied by Mitsubishi Hitachi Power Systems (MHPS) as per a contract signed in February 2018.

The produced power will be sold over a 25 year period to the domestic electricity company EGAT. Mitsui will hold a 30% in the project while Gulf Energy will retain the remaining 70%. The plant will burn natural gas, including imported LNG through a long-term gas sale agreement signed previously with state-run PTT Public Company.

This article was originally published by Enerdata.

Renewables

Sunseap to build five-hectare offshore floating solar system along Straits of Johor

16 November 2018

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Singapore

The system will reduce 26,000 tonnes in greenhouse gas emissions once operational in 2019.

Sunseap Group is developing one of the world’s first and largest offshore floating photovoltaic (OFPV) systems along the Straits of Johor which will generate about 6,388MWh of renewable energy annually once completed.

According to an announcement, the system is expected to power up to 1,250 four-room HDB flats and cut greenhouse gas emissions by about 26,000 tonnes every year over the next 25 years or so.

Whilst most large-scale floating PV systems are built on freshwater ponds, lakes or reservoirs, Sunseap’s latest development is one of the largest sea-based PV projects, it said. The OFPV system will be located north of Woodlands Waterfront Park.

The five-hectare OFPV pilot in Woodlands which is equivalent to the size of five football fields is expected to be commercially operational in early 2019, the statement revealed.

The widespread use of PV systems is hindered by space constraints and limited roof space in land-scarce countries like Singapore, and thus the delivery of such projects is vital in opening up similar opportunities in the region, Sunseap’s co-founder and CEO Frank Phuan said.

“Solar is one of the most viable and sustainable clean energy options in Singapore, and we continue to see innovative solar solutions being developed and deployed here,” Economic Development Board (EDB) executive director of energy, chemicals & materials Damian Chan said.

Sunseap previously participated in the world’s largest floating PV test-bed in Singapore at Tengeh Reservoir which showed that floating PV systems perform better than typical rooftop solar PV systems in Singapore due to cooler temperatures of the reservoir environment.

News Clipping

How Is Renewable Energy Certificate (REC) traded on the Blockchain?

Importance of Decentralized System

Final Thoughts

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