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  • Energy Economy
21 March 2019

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  • Malaysia

KUALA LUMPUR: The government will tender out RM3.2 billion renewable energy (RE) and energy efficient projects this year.

Minister of Energy, Science, Technology, Environment and Climate Change (MESTECC) Yeo Bee Yin said the projects included retrofitting up to 50 government buildings devices so as to be more efficient in energy usage.

“The pilot project will involve about RM200 million,” Yeo told reporters at the Greenification of Malaysia dialogue session organised by the Malaysian Industrial Development Finance Bhd (MIDF) here today.

Also present at the media briefing were MIDF group managing director Datuk Charon Mokhzani, MIDF Amanah Investment Bhd deputy chief executive officer Datuk Dominic Silva and head of debts Julie Gwee.

Yeo said there would be an open tender of which companies are invited to submit their bids to retrofit existing government buidings with energy saving devices.

She also said the government had appointed the Securities Commission to form a green financing taskforce to find easier ways for the private sector to raise funds for green projects.

“The SC will submit a report to MESTECC at the end of July and we hope to get its recommendations included in next year’s budget.

“We want to see how we can incentivise more private financing for green projects either through government regularisation or mobilisation of funds,” Yeo said.

  • Oil & Gas
21 March 2019

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  • Thailand

London — Thailand’s PTT Exploration and Production Public Co Ltd (PTTEP) has signed a sale and purchase agreement to acquire the Malaysian oil and gas assets of Murphy Oil Corp. for $2.127 billion in an all-cash transaction, the US oil company said in a statement Thursday.

The deal aligns with PTTEP’s attempts to boost its reserves and production profile, as it has been facing declining oil and gas output levels. It has been building its war chest with strong cash flows and had been keen on producing assets within the region for some time.

“This transaction is the largest upstream transaction in Southeast Asia in the past five years, and Malaysia’s largest ever upstream transaction,” Jefferies, which was the sole financial adviser on the deal, said in an emailed statement.

It also said the transaction is PTTEP’s largest acquisition in Southeast Asia, and its first significant acquisition in Malaysia.

PTTEP will acquire Murphy Sabah Oil Co and Murphy Sarawak Oil Co, the Malaysian subsidiaries of Murphy Oil, the statement said.

PTTEP could not be immediately reached for comment due to out-of-office hours.

The deal amount, payable upon closing of the deal, is supplemented by a “$100 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020,” the statement said.

The transaction is expected to close by the end of the second quarter.

For Murphy Oil, the sale to PTTEP means that it will exit Malaysia after monetizing its assets and reshuffle its oil portfolio in favor of opportunities in the US energy sector, including both deep water and onshore acreage.

“The company plans to continue its current oil-weighted strategy in both the Eagle Ford Shale and the Gulf of Mexico, while maintaining its focused exploration plan,” Murphy Oil said.

It said its board has authorized a $500 million share repurchase program, expects to record a book gain on the sale between $0.9 billion to $1.0 billion, and plans to repatriate nearly all the cash proceeds to the US.

Murphy Oil said as of year-end 2018, its net proved reserves were 816 million barrels of oil equivalent, of which 16% or 129 million boe were attributable to Malaysia. Of the 129 million boe of proved reserves, 70 million boe are characterized as proved undeveloped, it said.

  • Electricity/Power Grid
21 March 2019

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  • Cambodia

Representatives of Electricite Du Cambodge are planning a trip to Turkey to discuss bringing a floating power plant that will help the nation cope with the current energy crisis, Prime Minister Hun Sen said.

Speaking yesterday to a group of garment workers in Pursat province, the premier said bringing the floating facility would be an emergency measure to battle Cambodia’s power shortage.

Representatives from the Ministry of Mines and Energy, Electricity Authority of Cambodia, and EDC have been meeting with officials from the Turkish embassy since the beginning of the week to discuss the cost of bringing the floating plant as well as the tariff that will be charged.

..

EAC chairman Yim Viseth said, “The Turkish side requested to meet with us this week because they needed to know some information before making a decision on the floating power plant. We also need to know what tariff will be charged before we can make a decision.”

Mr Viseth did not reveal details regarding the cost of bringing and using the floating power plant.

EDC said earlier this week the country lacks 13 percent of the energy it needs, which has pushed the body to seek energy imports from neighboring countries.

On Monday, EDC announced it will buy 80 megawatts from Thailand and 10 MW from Laos.

Prime Minister Hun Sen on Saturday said the country is now facing an electricity shortage of about 400 MW, leading to power outages, and appealed to people, especially those in the business sector, to understand that this is because of an ongoing dry spell.

..

“Climate change is not only affecting Cambodia but the whole region. We need water to produce electricity,” he said. “I urge people not to waste water as we will experience a long dry season which will last until June.”

Mr Hun Sen appealed to people to understand that there is a need for power cuts during this period and called on those who have generators to use them in their houses, hotels or workplaces to reduce the usage of electricity.

“A large amount of our electricity is produced through hydropower dams, but now there is a shortage of water so the dams can only generate a small amount of electricity,” he said. “We currently lack 400 MW, and we are seeking solutions to tackle this issue.”

EDC announced last week that a 60 MW solar power park in Kampong Speu province will start generating power next month, roughly four months ahead of schedule.

The solar farm will become fully operational in August this year, EDC said in a Facebook post.

..

“The 60 MW solar farm in Tmat Pong, located near Phnom Penh, will generate 20 MW in mid-April and will run at full capacity in August,” EDC said.

“The project will be complete four months ahead of the date stipulated in the contract.”

EAC’s Mr Viseth said the plant will be brought online earlier, despite not being at full capacity, to combat power woes in the country.

“We are facing a shortage of power and the EDC has made this a priority issue, so the fact that we can get this project online ahead of schedule is pretty good,” Mr Viseth said.

Last year, Cambodia consumed 2,650 MW, a 15 percent increase compared to a year earlier. 442 MW were imported from Thailand, Vietnam, and Laos in 2018, according to the Ministry of Mine and Energy.

  • Renewables
21 March 2019

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  • Cambodia

itting in her bright and airy 17th floor office, Rithya Menon, Okra Smart Solar’s lead firmware engineer, checks the frequently updating data telling her everything about how well their community services are operating.

“I saw in the data that there was a problem with batteries going down each day. They should be recharging to full power,” she says, referring to Okra’s solar charged batteries running households living off the electrical grid.

Founded in Australia in 2016, Okra is a technology startup that builds IoT (internet of things) hardware and software which enables smart solar smart grids to provide clean, renewable and reliable power to rural off-grid communities.

Okra’s CEO and co-founder Afnan Hannan tells The Post about his vision for the project.

“I have been working on Okra for two and a half years and my mission is to make sure that every single person on this planet has access to energy 24/7 so that they can live modern, technology driven lifestyles.

“Using electricity to learn, to get jobs, to make money and to do all the things we take for granted to make our lives easier – even basic things like using refrigeration,” he says.

Hannan, who hails from the Australian capital Canberra, says that the organisation has developed an innovative power sharing system which minimises waste and maximises connectivity and efficiency.

“We’ve created an IoT controller and this device is installed in every house. The controllers can be connected from one to the next with a cable and lets houses connect together into smart-grids.”

“So if there are solar panels or batteries on any of the houses, the software redistributes extra power from one house to the next minimising wastage and making sure all houses have 24/7 power,” he says.

Okra’s first home featuring an off-grid controller was installed in March last year. Until then, the Okra team spent most of their time in Cambodian communities and with solar energy companies understanding household behaviour and conducting research and development before rolling out their product.

‘Plug & Play’

The difference between Okra and a standalone home solar system is that a standalone system consists of a PV panel and battery that provides limited power to one household only.

In most cases, the panel and battery assets are not sized appropriately so up to 50 per cent of solar generation is wasted as batteries become fully charged just after midday and are drained quickly at night time.

In contrast, Okra’s technology connects solar home systems into smart grids which enables energy sharing.

This means panels and battery sizing does not significantly affect a household’s ability to scale their energy consumption. To do this, households simply needs to “plug” into a neighbouring household on the network, hence “Plug & Play”.

“If we start with one, it still works but it’s a standalone. There is no way to share the power, but if you connect with next house, you can share the power from one to the others and you can also connect more and more houses, and the more you connect, the more they all share together,” says Hannan.

“It’s as simple as plugging a cable from any of the houses into another Okra controller. As soon as they’re connected together, Okra software activates and starts sharing power in the smart network.”

Okra smart grids are used to provide energy for lighting, mobile phone charging, cooking, fans, television and even refrigeration. In the future, Okra aims to make sure their products can meet demand for more power-intensive electronic devices such as air-conditioners, washing machines, e-vehicle charging and other modern appliances.

Right now, 101 households are connected to energy from Okra smart grids in the most rural areas of Takeo and Kampong Speu provinces. The locations in both provinces are far from existing grids and the communities had no power before they were connected to Okra.

“Our vision, is not to just make sure communities have access to energy, but to make sure our partners activate the communities to use energy for improved productivity in the future. So we want our partners to show communities how refrigeration, water pumping and even online education and mobile phone use can help them generate more money,” says Hannan.

Content image - Phnom Penh Post

Okra Smart Solar’s lead firmware engineer Rithya Menon (left) and Okra’s co-founder Afnan Hannan work at their office in Phnom Penh. leap tepitou

“We have taken the startup engineering approach. We’ve learned a lot from these 100 households and right now we’re optimising our product from these lessons and we’re also changing how we encourage our partners to roll the technology out – community activation is one of those lessons. Our next product iteration is going to be even more cost effective for the community and we’ve got plans to have our technology energise thousands or even tens of thousands of families within the next 18 months.”

99.9% uptime

He said Okra uses smart algorithms and machine learning distribution to ensure minimal power loss and maximum reliability and efficiency. The grids have 99.9 per cent uptime, even during the hot months, which over the past few weeks with power cuts scheduled in Phnom Penh, have surpassed the reliability of the Cambodian national power grid.

“People in remote communities still use diesel and kerosene that is very expensive. It costs from 10 to 100 times more to use Kerosene than it does to use electricity from Okra networks, and all Kerosene can do is provide poor lighting and fuel for cooking,” Hannan says.

Okra has a team of ten people that includes engineers from the US, Australia and England, as well as researchers from Russia and China and a Cambodian project manager.

“We are not saying that we are the best solution in every single area. If families need massive loads like air-conditioners there needs to be a different solution. But if all a household uses electricity for is to pump water and refrigeration in remote areas, Okra is a really good option.

“Our partners set up Okra in Kampong Spur and Takeo provinces in the regions where the electricity grid is far away, meaning people wouldn’t get connected for a while. In these areas, for sure, compared to grid extension or even standalone solar home systems, Okra is not just cheaper, but also more reliable,” says Hannan.

Okra’s partners who install the technology charge their customers a monthly fee, similar to an electricity bill. Families pay between $5 and $15 per month, with a deposit of between $20 and $30. However, houses are significantly reducing the amount they spend on diesel and kerosene, which sometimes amounts to $50 per month. A further upside is that now they also have 24/7 energy from clean solar power.

Hannan says Okra has grand visions for Cambodia, Southeast Asia and eventually the world.

“Energy as a service model from connected solar home systems is unique worldwide . . . Since we’ve rolled it out in Cambodia, we’ve received demand from countries around the world, including the Philippines, Indonesia and all the way to Kenya and Nigeria. But right now, we’re focused on Southeast Asia.

“The Cambodian government’s goal of providing nationwide electricity by 2023 is fantastic. But our plan is to work with authoritative bodies to find out which areas are hardest to reach so those communities can be setup with Okra smart networks and benefit from energy access today,” he says.

  • Others
20 March 2019

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  • Thailand

Egat is seeking suppliers for imported LNG as it enters the marketplace for the first time.

State-run Electricity Generating Authority of Thailand (Egat) is to hold an auction between April and June this year to find a supplier for imported liquefied natural gas (LNG).

Tawatchai Jakpaisal, deputy governor for the fuel sector at Egat, said registrants who qualify for the auction are expected to submit documents by April 18 and by the end of April a shortlist will be announced.

In early May, the Egat board and the cabinet are expected to approve the auction process.

In June, a final winner will be announced and will sign a purchase contract. The first shipment of LNG is expected in September at the receiving terminal owned and operated by national oil and gas conglomerate PTT. The terminal in Rayong’s Map Ta Phut has a capacity of 10 million tonnes.

Mr Tawatchai said LNG volume for the first year is expected at 280,000 tonnes, followed by 1.5 million tonnes in 2020.

Egat already received approval from PTT LNG to import 1.5 million tonnes of LNG a year for 38 years. The contract will start on January 2019 and end in 2056, supplying Egat’s South Bangkok Power Plant, Bang Pakong Power Plant and Wang Noi Power Plant.

The National Energy Policy Council (NEPC) approved Egat distributing LNG via a pilot project to assess pipeline market liberalisation under a Third Parties’ Access (TPA) regime to deregulate the sector.

Egat needs to manage all processes regarding LNG, starting with decisions regarding imported amount, import process, terminal use and Egat’s power plants fuelled by LNG. This is Egat’s first involvement in supplying LNG.

Egat is working with a consultant to study sources that are best suited for import based on pricing, security, flexibility and risk management. Egat will not solely depend on a single LNG source.

For the pilot project, the Energy Policy and Planning Office proposed two main shippers to the NEPC — PTT and Egat — for importing LNG and testing the TPA system.

Egat has to separate the LNG supply unit from the generation unit. When the TPA system is stable in terms of both control and operation, it will enter the second phase, which will be more liberalised.

My Tawatchai said imported LNG costs more than natural gas from the Gulf of Thailand, but the gas is depleted and a replacement is necessary.

Egat needs a strategy to import LNG from sources with competitive prices to hold down power costs, he said.

As LNG imports are essential to Egat’s new mission to enter a complex and fluctuating international market, Egat must develop human resources familiar with the LNG market.

“This is the challenging mission, one where Egat is committed to achieving support from all sectors required,” Mr Tawatchai said.

  • Electricity/Power Grid
20 March 2019

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  • Myanmar

Driven by the surging need for electricity in Myanmar, Singapore’s Sembcorp Industries Ltd recently launched its US$310 million Sembcorp Myingyan independent power plant in Mandalay, according to Group President and CEO Neil McGregor.

McGregor said at the launch the 225-megawatt power plant would generate around 1,500 gigawatt hours of electricity per year for supply to Myanmar’s Electric Power Generation Enterprise.

“This is enough to meet the power needs of around 5.3 million people. Our facility is also the country’s most efficient power plant, applying advanced technology to maximise power output and minimise emissions,” he said.

McGregor said the plant would help modernise Myanmar’s power industry, provided that it is one of the largest combined cycle gas turbine (CCGT) power plants in Myanmar. The firm has brought its technical and operational expertise to solve infrastructure challenges in Myanmar by establishing the model for public-private partnerships in the nation’s power sector, he added.

“We have worked hard to strengthen our relationship with residents in the immediate area around our plant through open, proactive engagement,” he said.

“We have taken time to listen, and have invested in initiatives to make a lasting positive impact to them. We believe in meaningful initiatives that empower our people and communities.”

According to the top executive, 95 per cent of the firm’s staff at Sembcorp Myingyan site are locals, and it will continue building the capabilities of its local employees, and will expand the team over time.

“Building up local talent and knowledge transfer has been a key part of our agenda. We have a number of Myanmar nationals working with us in Singapore. With the experience they gained, we sent them back to Myanmar to work at the plant, where they could also mentor and train new local employees,” he said.

In a bid to help equip its team with the specialised skills to operate a CCGT plant, the firm designed a rigorous programme that included field visits to its facilities in Singapore and Oman to see operations there first-hand.

McGregor lauded his team for their performance. During the construction of the plant, the firm achieved more than 8.7 million safe man-hours, with zero lost time injuries. For this outstanding safety performance, the firm received gold awards from the Royal Society for the Prevention of Accidents in 2016 and 2017.

As the first internationally and competitively tendered power project in Myanmar, the plant commenced full commercial operations in October 2018. The development and delivery of the plant demonstrates a successful partnership with many other international partners including Asian Development Bank, Asian Infrastructure Investment Bank and International Finance Corporation, he said.

For the implementation of the project, the firm also secured loans from commercial lenders including Clifford Capital, DBS Bank, DZ Bank and the Oversea-Chinese Banking Corporation.

  1. also announced that it is the first thermal power plant in Myanmar to have built-in solar power capabilities. Rooftop solar panels at the plant’s administrative building and warehouse will generate clean energy for onsite use. This will enhance sustainability at the plant, and also allow it to export more power to the national grid.

Strong indicator

McGregor said the success story of Sembcorp Myingyan would encourage Singaporean and foreign companies to invest in Myanmar’s energy sector.

“It is a story about partnerships. The delivery of the plant is an achievement, not just for us, but also for a number of key stakeholders who have been vital to the success of the project,” he said.

“In many ways, it is a major project for a number of Singapore companies venturing into Myanmar. Singapore companies were also involved in the construction of the plant, providing professional services and funding, and many of whom were operating in a new market.”

  • Energy Cooperation
  • Oil & Gas
20 March 2019

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  • Malaysia
  • Vietnam

State-owned Vietnam Oil and Gas Group (Petrovietnam) and Malaysian state-owned Petroliam Nasional Berhad (Petronas) announced Monday they’ve signed a framework agreement for gas supply, Kallanish Energy reports.

Petrovietnam will buy more gas from Petronas and “other Malaysian gas sources,” an official statement reads. The feedstock will be transported to the Ca Mau Gas-Power-Fertilizer Complex, a complex of gas pipeline, urea plant and thermal power plant located in Southern Vietnam.

At the moment, the complex receives gas from a block overlapping the two countries. Petrovietnam’s priority is to maximize gas demand during the dry season and the company will receive support from Petronas to deal with excess gas in the dry season.

However, between the end of this year and the start of next year, it’s expected the demand for gas will exceed supply, with a gap of more than 35 billion cubic feet per year. The new agreement is aimed at balancing this shortfall and ensuring energy security in the area.

At the signing ceremony, deputy director general of Petrovietnam Nguyen Quoc Thap, said this agreement confirms the effective cooperation between the two companies.

  • Energy Economy
  • Energy Efficiency
19 March 2019

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  • Malaysia

METRONIC Global Bhd targets to achieve a US$1 billion (RM4.08 billion) market share of smart city projects across Malaysia, Europe, the US, Middle East and South-East Asia in the next three years.

Metronic CEO and ED Brian Hoo Wai Keong said the US$1 billion target is plausible as it is less than 1% of global investments in smart city technologies, which are expected to rise to US$135 billion by 2021, as stated by International Data Corp’s Worldwide Semi- Annual Smart Cities Spending Guide.

He added that the target is also in line with current rapid progress in telecommunications connectivity and hyperurbanisation.

Among the contributors to the targeted figure is the group’s subsidiary Metronic Engineering Sdn Bhd, which has recently signed a memorandum of understanding with Hong Kong-listed Zhuhai Singyes New Materials Technology Co Ltd that would result in world-class smart city technology solutions in Malaysia.

Metronic’s partnership with Singyes is also expected to connect the country’s infrastructures with the Internet of Things (IoT) and 5G capabilities, which in turn would support the 11th Malaysia Plan’s Smart City Initiatives.

“Smart city technology solutions from Singyes — such as smart light-adjusting film/LED/glass, sensor networks, advanced composites lighting/closed-circuit television systems with infrastructure integrated, renewable energy solar solutions and 5G capabilities — allow for a safe and healthy smart living environment which bodes well for smart city initiatives across Malaysia,” Hoo added in a statement.

Metronic has registered a commendable revenue of RM43 million for the financial year ended Dec 31, 2018 (FY18).

Among the projects the group is involved in are the Kuala Lumpur (KL) Convention Centre, Melawati Mall, Mass Rapid Transit (MRT) Sungai Buloh-Kajang Line, KL Sentral, Sunway Velocity Hotel, Arcoris Mon’t Kiara, Damansara City Hotel, KL Eco City and Radia Bukit Jelutong.

As at FY18, Metronic’s balance orderbook stood at RM83 million.

The group also undertook a rationalisation exercise on its available asset and investments towards optimising returns.

As such, Metronic’s ongoing cash call of up to RM42 million from its renounceable rights issue is expected to be put to good use to generate more profits for the company by increasing its project tender success rates.

The rights issue comprises up to 645.34 million in new ordinary shares at an issue price of 6.5 sen per rights share, together with up to 484.01 million free detachable warrants on the basis of four rights shares, with three free warrants for every two existing Metronic shares held by its entitled shareholders.

Currently, Metronic is in the middle of finalising tenders of several huge potential engineering projects worth up to RM300 million in Malaysia and across the region.

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