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Oil & Gas

Brunei car ownership completely saturated: ASEAN

23 March 2019

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Brunei Darussalam

Car ownership in Brunei is saturated and the sultanate stands to benefit from fuel economy policies over time, according to a publication of the Association of Southeast Asian Nations (ASEAN).

The “ASEAN Fuel Economy Roadmap for Transport Sector 2018-2025: with Focus on Light-Duty Vehicles,” released recently, shows Brunei has fully saturated its vehicle ownership, being the only country within the 10-member Southeast Asian bloc to have done so.

Vehicle ownership in Brunei stood at 419 vehicles per 1,000 people in 2013. The country’s saturation level, according to the roadmap, is 420 vehicles per 1,000 people.

The level of vehicle ownership in a country is said to be saturated when vehicle ownership per capita in that market stops growing.

Vehicle ownership in the sultanate is also expected to remain fully saturated until 2040.

It added that given its high level of vehicle ownership, Brunei “could benefit from fuel economy policies as the vehicle fleet is refreshed over time.”

Meanwhile, the roadmap singled out Brunei for its high fuel subsidies, saying this denotes that the sultanate’s gasoline prices are below the world market price for crude oil.

Data from the roadmap show that the sultanate has the cheapest average petroleum price at the pump, at 41 U.S. cents per liter, while on the other end of the range, Singapore, which heavily taxes fuel, prices its petrol at 1.58 U.S. dollars per liter.

“Fuel taxes are a very efficient means of motivating fuel efficiency improvement. Cutting subsidies can thus be a key starting point towards effective fuel economy policies,” ASEAN says.

The roadmap reveals that Brunei, along with Malaysia and the Philippines, is planning to introduce fuel economy labels for vehicles, following the lead of Singapore, Thailand, and Vietnam, which impose mandatory labeling schemes for light duty vehicles, as well as Indonesia, where labeling is voluntary.

It also notes that Brunei wants to adopt the European Union (EU)’s carbon dioxide emissions standards for light duty vehicles, and points out that the EU rules on limiting motor fuel consumption are more stringent than existing measures being implemented on a voluntary basis in other ASEAN markets.

Xinhua earlier reported that Brunei will introduce in 2023 fuel economy regulations that aim to reduce the country’s carbon dioxide emissions and lower motor fuel subsidies.

Minister of Energy, Manpower and Industry Hj Mat Suny said during Thursday’s Legislative Council meeting that the regulation, which will be hammered out with Ministry of Transport and Infocommunications, will be enforced in stages beginning 2025.

Renewables

Treasure Island taps Vivant subsidiary to shift to solar energy

23 March 2019

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Philippines

CEBU CITY, Philippines – Vivant Energy Corporation subsidiary ET Vivant Solar helps Cebu-based manufacturing company Treasure Island Industrial Corporation (TIIC) meet its sustainability goals by converting part of its energy requirements to solar.

ET Vivant has installed solar panels on the roof of buildings at the TIIC compound in Barangay Tingub, Mandaue City. The solar rooftop installation is designed to generate 1400 kWp of renewable energy exclusively for TIIC’s packaging division, iPak.

TIIC’s Packaging Division, branded as iPak, manufactures plastic and metal packaging materials, containers, pouches, caps, seals, and labels, as well as plastic household containers for domestic and international customers.

“As a manufacturing plant, we have taken great strides in protecting the environment in communities where we operate,” TIIC Senior Vice President Douglas Ong said. “Partnering with ET Vivant to use solar energy supports our mission to be a value-driven company that generates sustainable growth and delivers maximum profitability.”

“Using solar also allows TIIC to see savings in terms of its electricity consumption from the grid,” Ong said.

Treasure Island and ET Vivant signed a power purchase agreement allowing the manufacturing conglomerate to use all of the solar energy generated by the photovoltaic panels installed on the rooftop of its buildings.

ET Vivant, a partnership between leading global renewable energy developer ET Energy and Vivant Energy Corporation, will ensure maintenance of the solar rooftop installation until it turns over ownership of the modules to TIIC at the end of the 15-year contract.

“We are thankful that TIIC chose to start this change with ET Vivant,” Vivant Energy Corporation President and CEO Arlo G. Sarmiento said. “At ET Vivant, we develop solutions that not only meet the needs of our customers, but also adapt to the changing environment. We are particularly excited that this is our first solar project in our home province of Cebu, where we’ve been providing energy solutions that improve everyday living for almost a century.”

“We thank TIIC for trusting us to become their partner,” said Dennis She, CEO of ET Energy. He said that ET Vivant will take TIIC through every step of the process to ensure the success of the partnership.

The ET Vivant joint venture was formalized in December 2016 as part of Vivant Energy’s efforts to expand its renewable energy investments through subsidiary Vivant Renewable Energy Corporation.

Vivant Energy holds publicly listed Vivant Corporation’s investments in energy distribution and generation, retail electricity supply and energy-related engineering solutions. Through its equity interests in subsidiaries and associates, Vivant Energy provides energy-related services in Luzon, the Visayas and in Mindanao. /dcb

Oil & Gas

Investors to be invited to boost LPG, CNG businesses

23 March 2019

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Myanmar

Investors will be invited to boost gas exploration as well as LPG and CNG businesses, said Union Minister Win Khaing for Electricity and Energy.

He said investment in such businesses would help improve Myanmar’s electricity sector.

“To improve the electricity sector, we will invite investors to cooperate with us in exploring gas and developing LPG and CNG businesses and factories as well as solar energy,” said the minister.

According to sources from the Ministry of Electricity and Energy, tenders will soon be opened to operate 33 oil and gas blocks—15 offshore blocks and 18 onshore blocks.

At Myanmar investment forum held in Nay Pyi Taw on January 28, Union Minister for Investment and Foreign Economic Relations Thaung Tun said more blocks in Myanmar’s offshore areas would soon be put to tender.

Plans are underway to engage in LPG as a strategic business for its extensive use in industrial and transport sectors as well as for kitchen purposes.

It is targeted that LPG will be distributed to 1 million households in villages by 2020.

Electricity/Power Grid

Vietnam set to increase power supply to meet rising demands

23 March 2019

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Vietnam

According to Takimoto Koji, chief representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, Japanese investors are concerned as JETRO has been recently announced that Vietnam could face a power shortage by 2022.

However, the investors can feel relieved as experts believed Vietnam would increase coal-fired power sharply over the next decade to meet the local demand.

Daine Loh, power and renewables analyst of Fitch Group’s Fitch Solutions Macro Research, forecast coal power generation will reach 50.5 percent of the total consumption power mix by 2028, with gas at 22.5 percent, hydropower at 22.8 percent and non-hydro renewables at 3.8 percent.

He explained this is due to relatively slow supply growth from traditional sources of energy such as hydropower and natural gas, with the government set to turn to coal to meet the surge in demand for power.

According to Daine, traditionally, Vietnam has relied on hydropower and natural gas for its power generation, but there are several obstacles to see continued growth in these two sectors.

Firstly, hydropower potential has already been almost fully exploited at present. Furthermore, recent droughts and decreasing water supplies highlight the threats facing Vietnam’s hydropower generation output reliability.

Secondly, domestic gas reserves are depleting and will not sustain a substantial ramp-up in gas power generation over the longer term, Daine said.

“As a result, we expect the government to turn largely to coal power to meet Vietnam’s increasing power demand, which stems in particular from an expanding industry and manufacturing sector, in order to support continued economic growth. Rapid urbanization and government efforts to up electrification levels to 100 percent will further boost electricity consumption growth rates.”

Sharing the view, power analyst Nguyen Canh Nam from the Vietnam Energy Association, said coal-fired power would still play a key role in the country’s electricity industry in the coming years.

Considering the country’s domestic coal resources, the ability to import coal and the level of greenhouse gas emissions, it is necessary to develop coal-fired power because of its technical and economic feasibility, Nam said, explaining while renewable energy from solar and wind is more costly, it can’t ensure consistent power supply.

Application of modern tech

According to Nam, the ratio of Vietnam’s coal-fired power is 39.1 percent, the same as the global average. The rate is much higher in many other countries, such as 63 percent in China, 61 percent in Australia, 46 percent in South Korea, 78 percent in Poland and 87 percent in South Africa.

Besides, he said, coal-fired power output per capita in Vietnam is also 793 kWh, much lower than the world’s average level of 1,290 kWh.

However, Nam said the development of coal-fired power must be cleaner to increase efficiency and reduce emissions through the use of more modern technologies.

Besides coal-fired power, Nam also noted the need to accelerate the development of electricity from other resources, especially renewable ones.

For more sustained development, it is very important to change the country’s economic structure with an aim to reduce the share of power-intensive industries, he stressed.

“In doing so, the demand for electricity decreases, which will reduce the pressure on the electricity supply. At that time, we can make long-term investments for clean and renewable energy,” Nam said.

Others

Brunei eyes to curb motor fuel use with new rules

22 March 2019

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Brunei Darussalam

Brunei will be introducing a fuel economy regulation to reduce the country’s carbon dioxide emissions and fuel subsidies.

Minister of Energy, Manpower and Industry Hj Mat Suny said they will work with the Ministry of Transport and Infocommunications to come out with the regulation that is expected to be launched in 2023.

“It will be enforced in stages. The first phase will be enforced in 2025 and the second phase in 2030,” said the minister during Thursday’s Legislative Council meeting.

He added that the sultanate plans to introduce a pilot project to have at least 10 percent of electric vehicles by 2035.

Hj Mat Suny revealed that Brunei has saved more than 1.4 million Brunei dollars (1.04 million U.S. dollars) in subsidies and reduced carbon dioxide emissions by 4,361 metric tons following the introduction of hybrid vehicles and fuel-efficient vehicles.

As many as 1,960 fuel-efficient and hybrid cars have been registered in Brunei since 2012, he said.

“The savings in subsidies and reduction of carbon dioxide emissions will definitely provide a positive effect on the economy and the environment,” he added.

Brunei’s Land Transport Department places the number of registered vehicles in the country at 148,000 as of 2014, or around one vehicle for every 2.8 Bruneians. The department also notes that car ownership in the sultanate grows at a rate of 9 percent per year.

Oil & Gas

Brunei earmarks 1.2 bln USD for oil, gas exploration

22 March 2019

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Brunei Darussalam

Brunei has earmarked 1.65 billion Brunei dollars (1.2 billion US dollars) for the development of new oil and gas fields and the acceleration of exploration activities this year as it sets its sights on increasing petroleum production by 30 percent over the next five years.

Minister of Energy, Manpower and Industry Hj Mat Suny said the investment aims to secure Brunei’s petroleum industry, which makes up 57.3 percent of the country’s economy.

“This is a huge investment to ensure that oil and gas production is sustainable in the future. This investment will bring about a significant economic impact on local entrepreneurs and the service industry,” he said on Thursday’s Legislative Council meeting.

The minister said they will start drilling five new exploration wells, including two key wells, this year to determine the potential of the new locations.

Hj Mat Suny also said that there are plans to look into deep water exploration in areas with a depth of two km.

He said that the sultanate is also aiming to increase oil and gas production by 9,500 barrels per day this year, to 121,000 barrels per day from 111,500 barrels per day in 2018.

The minister said that Hengyi Industries’ oil refinery and petrochemical plant at Pulau Muara Besar (PMB)is expected to contribute to a more secure supply of domestic petroleum products this year.

Hengyi Industries is a joint venture between China’s Zhejiang Hengyi Group and Damai Holdings, a wholly owned subsidiary under Brunei government’s Strategic Development Capital Fund, with the two owning 70 percent and 30 percent of the joint venture respectively.

Hengyi’s investment into PMB is the largest foreign direct investment into Brunei from China so far, which is due to help the southeast Asian country to upgrade its industries, alleviate its dependency on oil import and also boost economic and trade cooperation between Brunei and China.

Electricity/Power Grid

Camiguin solon asks power utility to address P426-M losses

22 March 2019

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Philippines

MAMBAJAO, Camiguin – Lone district Representative Xavier Jesus Romualdo on Thursday called on the island province’s electric provider to act on its staggering financial losses, saying any disruption in electric services could threaten Camiguin’s thriving tourism industry.

Data obtained from the Camiguin Electric Cooperative (Camelco) showed that the power utility’s debt has already ballooned to PHP426 million over the years.

Romualdo said Camelco’s “inability to properly manage its finances is unacceptable as it means there is neglect in the management” of the power utility.

Joanne Lapeciros, Camelco finance manager, said the electric cooperative has been in the red since she started working for the firm in 2007.

The losses, Lapeciros conceded, were primarily “due to mismanagement, excessive salaries and perks of its officials, and inability to pay loans to government agencies and obligations from its power suppliers”.

Romualdo said the situation has reached an alarming level that he was compelled to initiate a congressional hearing attended by Camiguin power consumers, local government officials, Camelco management, and representatives from the National Electrification Administration (NEA) and the Energy Regulatory Commission (ERC).

The March 18 congressional hearing held in this town has exposed that Camelco’s dire financial conditions are untenable, the lawmaker said.

Romualdo, chairman of the Good Government and Public Accountability and vice chairman of the Energy committees of the Lower House, feared that Camelco’s losses would bleed into the island’s economy–especially its tourism sector.

He noted that Camiguin has been touted as one of the best tourist destinations in the country, where people flocked all year round for its white sand beaches, falls, springs, dive spots, and other attractions.

Based on its financial statement in 2017, Camelco’s debts to its power suppliers have reached PHP76.5 million. Last year, the utility incurred debts of about PHP47 million.

Camelco sources its electricity through a power supply agreement (PSA) from FDC Misamis Power, which supplies the utility with four megawatts; King Energy Generation Inc., two megawatts; and GN Power–which has yet to go online–one megawatt.

Camiguin’s electricity users are currently paying PHP16.45 per kilowatt hour, considered as of the more expensive rates in Northern Mindanao.

Camelco’s current contracted power supply is 10.73 megawatts, but it is using only less than a half of that, at 4.7 megawatts.

With expected operation of GN Power to go online, Romualdo said Camelco’s consumers could end up paying PHP21 per kilowatt hour, which could be the highest in Mindanao.

The congressman said the exorbitant electricity rate was due to “over contracting” as Camelco went into deals with power producers more than its required need.

To lower the island’s electric rate, the lawmaker proposed that Camelco cancel its contract with KEGI.

“The problem with this PSA is that it is over contracted and we (consumers) are paying for this,” Romualdo said.

Meanwhile, Mambajo Mayor Jurdin Jesus Romualdo expressed fears that the island’s power problems could drive away potential investors or make the existing ones flee.

The elder Romualdo said he is even considering on filing charges against the Camelco management and directors for their supposed failure to address the losses and to the NEA and ERC for allegedly allowing the utility’s financial problem to spin out of control.

For his part, NEA official Legardo Galang Jr. said they will conduct their own investigation to determine who is answerable for Camelco’s poor financial conditions. (PNA)

Renewables

Philippines considering nuclear energy

22 March 2019

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Philippines

Nuclear energy might be coming to the Philippines soon after an International Atomic Energy Agency (IAEA) team of experts concluded an eight-day mission in December to review the country’s infrastructure development for nuclear power.

The Integrated Nuclear Infrastructure Review (INIR) was conducted at the Bataan Nuclear Power Plant after an invitation by the Philippines government. Currently, the Philippines is the only country in ASEAN with a completed nuclear power plant.

Philippines’ Energy Secretary Alfonso Cusi said the Philippines is “openly considering” the feasibility of introducing nuclear power as a means of addressing its energy security and energy equity. With a fast-growing economy, the Philippines’ demand for energy is expected to triple by 2040.

The IAEA noted that the Philippines is following a systematic approach to finalise its nuclear power strategy and complete the associated infrastructure development. Cusi said results from the INIR mission will help the Philippines focus its efforts on the identified gaps, accelerate the legislative process and prepare the national decision.

“It is high time we put the framework in place to bring nuclear power into the energy mix. We should learn the lessons from the past and catch up with the missed opportunities,” Cusi was quoted as saying on the IAEA website.

Pioneering Philippines

The country’s existing nuclear power plant in Morong, a town in the Bataan province, is one of 13 potential sites spread out across the country. The power plant was completed 30 years ago under the Marcos regime in response to the 1973 oil crisis but was never operational.

The power plant cost the Philippines US$2.3 billion and was expected to generate 621 megawatts (MW) of power, but after President Marcos was overthrown in 1986 and the Chernobyl disaster happened a few months later, newly-elected president Corazon Aquino decided not to operate the plant. Today, the Bataan plant has become a tourist attraction and is visited by about 6,000 students and guests yearly.

Russia has been urging the Philippines’ government to restart the facility, and experts from the Rosatom State Atomic Energy Corporation made a discreet visit to Bataan in 2017 to inspect the nuclear facility. The Russian experts reported that the Bataan plant can become operational but would require repairs costing between US$3 billion to US$4 billion.

Filipino president Rodrigo Duterte is also thinking of making the Bataan plant operational and has said that safety will be his top priority in deciding whether to go forward with the plan. In 2016, Duterte ordered a study on the possibility of reopening the powerplant, and while not part of his massive “Build, Build, Build” infrastructure program, nuclear energy could be important in fuelling his infrastructure projects. Furthermore, Duterte could be eyeing nuclear energy as an option to feed the growing energy demands of the Philippines.

Source: Various

Russia’s role

Russia’s interest in Bataan is probably economic. Nuclear energy is one of its biggest economic assets. Russia exports goods and services pertaining to nuclear energy all over the world. At the moment, they have over 20 nuclear power reactors confirmed or planned for export construction. According to the World Nuclear Association, foreign orders totalled US$133 billion at the end of 2016.

In 2016, Vladimir Putin himself personally urged ASEAN to look into nuclear energy.

“Moscow is ready to cover the market and is ready to offer member countries projects on the construction of next generation nuclear electrical power stations,” Putin said at the Russia-ASEAN summit in Sochi.

Nuclear energy in Asia however, has been contentious to say the least. Ever since the Fukushima disaster in 2011, gaining popular support for nuclear projects has been difficult. In 2016, Vietnam decided to scrap its nuclear power plant plans with Russia and Japan after decades of nuclear-preparations citing rising costs and safety concerns.

Among the biggest safety concerns when it comes to nuclear power plants are accidents. While the Nuclear Energy Institute highlights that nuclear energy does not produce any greenhouse gasses and is the largest clean-air energy source, the reality is that a nuclear accident can cause irreversible long-term environmental damage as seen in Fukushima and Chernobyl. The amount of damage that a potential nuclear accident could cause heavily outweighs the benefits of nuclear energy.

It is not known at this point whether the Bataan plant will be activated. The Philippines government might have a difficult task of convincing its people that a nuclear plant is needed in the country. Historically, the Philippines has always had a strong anti-nuclear sentiment. There were large demonstrations and public protests when the Bataan power plant was under construction in the 70s and 80s. We could see a resurgence of that if plans to reopen the power plant go ahead.

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