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  • Oil & Gas

Indonesia’s Pertamina appoints SK, Hyundai for $4 bn refinery upgrade

10 December 2018

 – 

  • Indonesia

JAKARTA: Indonesia‘s Pertamina on Monday said it had appointed South Korea’s SK Engineering & Construction and Hyundai Engineering & Construction as engineering and construction contractors for its Balikpapan refinery upgrade.

The $4 billion project will be jointly undertaken by Indonesia’s PT Pembangunan Perumahan Tbk and Rekayasa Industri, Ignatius Tallulembang, director of large projects at the state-owned energy company, said at a media briefing.

At the same event, Pertamina signed a framework agreement with Oman’s Overseas Oil and Gas LLC (OOG) to develop a new $10 billion refinery and petrochemical complex in Bontang, also on the island of Borneo.

Once completed, OOG is expected to supply 300,000 barrels per day of crude oil to the refinery, Tallulembang said.

  • Others , 
  • Renewables

Power plan ‘a setback for sustainable energy’

10 December 2018

 – 

  • Thailand

ENVIRONMENTAL watchdog Greenpeace has called Thailand’s Power Development Plan 2018 (PDP) “sugar-coated” despite its embrace of more renewable energy, saying it still hinders efforts to reduce greenhouse-gas emissions.

The Energy Policy and Planning Office (EPPO), which drafted the PDP, affirmed at public hearings last week that it had removed plans for the Krabi and Thepa coal-fired power plants from the document. It said natural gas would remain the primary fuel for power generation, renewable energy would play a 20-per-cent larger role, and more electricity would be derived from private solar-panel rooftops.

Nevertheless, environmentalists remain sceptical, musing about “hidden agendas” within the PDP.

Tara Buakamsri, Thailand director for Greenpeace, said yesterday fossil fuels and other harmful sources of energy – such as waste and hydropower – still dominated the PDP. The approach would not only hinder progress on achieving the Paris Agreement’s goal for stabilising climate change, he said, it would jeopardise sustainable-energy development and “environmental justice”.

“The energy sector is by far the largest greenhouse-gas producer, so the PDP has very strong influence over the country’s efforts to reduce emissions and prevent severe global warming beyond two degrees Celsius,” Tara said.

“But it is now clear that the Thai authorities are not really serious about pursuing Paris Agreement goals, because the PDP contains many serious flaws that will backfire and hurt the global struggle to minimise the impacts of climate change.”

EPPO said the PDP was revised to reflect shifting conditions, in which renewable energy, especially solar photovoltaic (PV) energy, has become much cheaper and more widely accessible to all. Thus, renewable energy’s share of total power sources will be increased to 18 per cent, or 20,757 megawatts, by 2037.

And 10,000 megawatts from renewable energy will be earmarked for the private sector’s solar PV, the agency said.

EPPO deputy secretary-general Wattanapong Kurovat stressed that the PDP’s main objective was to ensure that each region has enough power and stable sources. It was thus important for every region to have its own base-load power plants as reliable sources, he said.

However, because proposals for new coal-fired plants have drawn strong opposition and two such plants listed in the 2015 PDP were shelved, Wattanapong said, natural gas remains the primary fuel for generating electricity. It has a 53-per-cent share of overall power generation in the new PDP, up from 30 per cent previously, while coal’s share has dropped from 23 per cent in 2015 to 12 per cent.

To fill the electricity gap left by cancelling the Krabi and Thepa coal plants, which were expected to generate 870 and 2,200 megawatts respectively by burning imported coal, two 700-megawatt gas-power plants will be built in Surat Thani, he said. These will ensure energy stability for the South.

“With many improvements made in electricity-generation plans for the next 20 years, we are delighted to report that PDP2018 will lower greenhouse-gas emissions compared to the previous plan,” Wattanapong said.

“If this revised PDP is fully implemented, Thailand’s electricity generation sector will only release 103.248 million tonnes of CO2 equivalent by 2036, which is lower than the estimated greenhouse-gas emission under PDP2015 for the same period, of 104.075 million tonnes.”

Tara said that, despite the reduction in coal dependency, Thailand remains overly reliant on natural gas, which also emits significant amounts of greenhouse gases when it’s burned, contributing further to climate change.

“And many people are also suspicious as to whether the Krabi and Thepa plants are truly off the table, because Strategic Environmental Assessments on those projects are still continuing and those findings could be used to revive proposals for the two plants,” he said.

Tara also claimed that some of the renewable energy sources and electricity that the PDP envisions being purchased from neighbouring countries are not actually clean or environmentally friendly.

The document includes waste-to-energy plants producing 400 megawatts, for example, which are neither clean nor safe for either the environment or public health. The waste burned to produce energy releases massive amounts of greenhouse gases, Tara said.

“Even buying hydropower from neighbouring countries is not clean or cheap, as the authorities say,” he added, pointing out how dams outside Thailand still cause severe suffering for Thais and the environment here.

“This is why the authorities must make sure that the PDP is consistent with global climate-change-mitigation goals and include genuine public participation.”

  • Oil & Gas , 
  • Others

Shell focuses on finding new Malampaya gas field

9 December 2018

 – 

  • Philippines

Shell Companies in the Philippines is pushing for more oil and gas exploration to find another Malampaya gas field, instead of putting up an import terminal for liquefied natural gas. “The economic question in LNG, if those who will use it are the existing ones we have, which are around 3 gigawatts of capacity, then actually if we can drill and find one more [gas field], that’s enough to feed the five plants,” SCIP chairman Cesar Romero said. Romero said LNG terminals would face the risk of being stranded if a new gas discovery was made. “The risk of LNG terminal is who will be your customer. If sensibilities prevail, indigenous always trumps…over imports. The import terminal, then if there is discovery, hopefully us, the LNG facility may be stranded,” he said. SCIP includes Shell Philippines Exploration B.V., which is engaged in oil exploration, and Pilipinas Shell Petroleum Corp. which is involved in the downstream retail oil industry.  “What we are trying to advocate is to give priority to indigenous over import, because the government will earn from it. The consortium has already given P10 billion to government as of August,” Romero said. Romero said Shell was looking at the existing Service Contract 38 or the Malampaya gas project for new discoveries and “various territories.” “We are looking at various territories.  Of course, SC 38 will always remain a priority for us because the asset is there.  We are prepared to do near field exploration,” he said. Romero said SCIP was prepared to invest more in the country, but was still seeking clarity on the issue of incentives for the oil and gas sector. “We want to invest but we hope we can get clarity to the fiscal regime which is PD [Presidential Decree] 87 be upheld,” he said. Petroleum Association of the Philippines president Don Paulino, who is also the managing director of Spex, said studies showed that the country’s energy requirements would double in 20 years and to help meet this increasing demand, the government should ramp up tapping energy sources that are indigenous to the Philippines.   “There have been a lot of studies in the past and one such study says that GDP growth is strongly correlated to energy demand and vice versa,” Paulino said.

“Therefore, we need energy to grow the Philippines,” he said. Paulino said the real challenge for the Philippines is to provide sustainable energy at the cheapest rate possible. “But in order to do this, we have to develop local indigenous energy sources,” he said.

  • Oil & Gas

New tycoon leads players in next game-changing deals in energy

9 December 2018

 – 

  • Philippines

THEY say good things come in pairs. This adage appears to be shaping up to be true in the case of Davao-based businessman Dennis Uy, who has partnered with two Chinese firms for big-ticket projects in the country.

Last month the National Telecommunications Commission (NTC) declared Mindanao Islamic Telephone Co. Inc. of Uy and China Telecom as the country’s third telco player.

Now, another Uy-Chinese firm tie-up may soon secure the green light of the Duterte administration to embark on an ambitious power project with an initial cost of $2 billion.

This, after the Department of Energy (DOE) declared  that it is determined to finish “very soon” its evaluation of the proposal of China National Offshore Oil Corp. (CNOOC) and partner Phoenix Petroleum Corp. for their planned liquefied natural gas (LNG) import terminal and power plant.

And “very soon,” energy officials say, may mean “in the next few days” at the most.

“We are rushing it and we want to make sure that the decision we are coming up [with] is the correct one,” said Energy Secretary Alfonso G. Cusi.

In fact, the energy secretary is expecting on his table a final report from the agency’s Centralized Review and Evaluation Committee (C-REC) on the application of Tanglawan Philippines LNG Inc., the registered joint-venture firm.

“Hopefully, toward the weekend I’ll have the report on my table and we will be able to make the decision next week,” Cusi said.

Should the partnership secure a permit from the DOE, it will be the second big-ticket contract to be awarded by this administration to Uy and a Chinese firm.

Tanglawan is among the 23 firms that expressed interest to put up an LNG hub in the Philippines. However, it is the only one that submitted an application to build an LNG hub.

In its application, Tanglawan is eyeing to build an LNG onshore terminal in Batangas with a capacity of 5 million metric tons per annum. It will also build a power plant with a capacity of 1,000 to 2,000 megawatts.

Philippines as LNG hub

The DOE is eyeing to make the Philippines Southeast Asia’s hub for LNG to ensure the continuity of power supply from natural gas-fired power plants in anticipation of the eventual depletion of the Malampaya gas field.

Currently, the Philippines only relies on the Malampaya gas field, where 98 percent of total production is used for power generation—supplying fuel to five natural gas plants in Batangas, namely, Ilijan, Santa Rita, San Lorenzo, San Gabriel and Avion with a total installed capacity of 3,211 MW that provide the electricity requirement of Luzon and even the Visayas.

“The Philippines has already failed in being the aviation hub despite our geographical advantage, also in maritime. This is a dream. We want to give it a shot,” Cusi said.

The LNG project is also vital to ensure the country’s energy security.

The energy chief also stressed that the long-planned import terminal will help temper electricity rates, especially when the Malampaya gas facility undergoes a scheduled maintenance shutdown.

Cusi said LNG can provide the demand from base-load, mid-merit and peaking requirements and can compete with other fuel sources that can address the least-cost optimal electricity from such demand centers.

“Around 3,200 MW of power is dependent on the natural gas and the LNG [terminal that] should have been done a long time ago because when the Malampaya undergoes maintenance shutdown, it’s costing…consumers a lot as we have power plants dependent on natural gas, which would have to switch to more expensive fuel adjustment,” he said. “We could have avoided that if we have our LNG terminal.”

PNOC role

The state-run Philippine National Oil Co.  (PNOC) was once very active and vocal in its pursuit to put up its LNG facility with a partner.

But its search for a partner is taking too long and the DOE could no longer wait for PNOC to conclude its search.

According to DOE Undersecretary Donito Marcos, the PNOC may have “slowed down” with its process.

But according to Cusi, PNOC could still be a partner in this LNG project to be spearheaded by the CNOOC-Phoenix partnership, noting that it is important for the government to be present in such a big-ticket project.

“PNOC’s presence is important because it will represent the government. Its participation in the LNG project will be discussed among themselves so the decision lies among the stakeholders in this project,” explained Cusi.

First Gen’s LNG project

Another eager company in the LNG space is the Lopez-led First Gen Corp.

Even before the DOE announced its intention to transform the country into an LNG hub, First Gen has declared it will put up its own LNG terminal within the Lopez-led company’s power-generation complex in Batangas City.

It recently signed a joint development agreement (JDA) with Tokyo Gas Co. Ltd. to build the said LNG terminal.

Tokyo Gas will take a 20-percent participating interest in the LNG project and provide support in development work to achieve a final investment decision.

Upon reaching that decision under the JDA, the parties will enter into a definitive agreement to proceed with the construction of the project, First Gen said.

“We [First Gen and Tokyo Gas]both share the vision of the Department of Energy in the implementation of LNG projects in the Philippines. First Gen and Tokyo Gas intend to cooperate with all relevant stakeholders who share the same vision to participate in making LNG viable for the Philippines,” said First Gen President and COO Francis Giles B. Puno.

First Gen has around 2,000 MW in operating gas-powered plants, namely: the 1,000-MW Santa Rita power plant, the 500-MW San Lorenzo power plant, the 414-MW San Gabriel power plant and the 97-MW Avion power plant.

The DOE said it is not discouraging other firms from putting up their own LNG facility even if this will be located in Batangas, which is where Tanglawan’s planned LNG project would be put up. However, the agency has warned them of the risks involved since this may affect the project’s viability.

“Why sell the same thing in the same area? The sellers, of course, would want to ensure their investment will grow. To ensure that, they must have customers who will buy what they sell. This is where careful planning comes into play,” Marcos said.

LNG law

Lawmakers and the DOE are working together to craft a law on LNG that will include, among others, an improved energy mix meant to entice private-sector investment.

“We are now in the process of working with the DOE in coming up with a comprehensive LNG law that will become the ultimate framework of the LNG industry,” said Sen. Sherwin T. Gatchalian, chairman of the Senate Energy Committee.

He said a law is needed to “make sure the future of LNG will be viable and sustainable” because a department circular issued by the DOE may not be enough.

“The DOE is agreeable to the creation of a law because we don’t have a law now that governs LNG. It’s just a circular now. We will have a framework to regulate the importation of LNG, the terminal activities of LNG, and also the liquefaction of LNG,” said Gatchalian.

Interested LNG investors have been saying that a capital-intensive project, such as LNG, would require a clear direction from the government since investment in LNG is estimated to cost at least $1 billion.

Gatchalian said the LNG law must also require the presence of off-takers to ensure the long-term viability of the gas resource.

The DOE agrees. It said a law is needed to be created to ensure the success of the Philippine downstream natural gas rules crafted by the agency.

  • Energy Efficiency

Towards an energy efficient ASEAN

9 December 2018

 – 

  • ASEAN

In tandem with a renewable energy policy, energy efficiency will be key to building a reliable and sustainable energy system for the future of Southeast Asia. Energy efficiency refers to the reduced rate of energy consumption in order to produce the same amount of output. Less energy resources are needed to fuel the same level of economic production, leading to higher gains over the long term.

While most Southeast Asian countries have their own energy-efficiency targets, ASEAN as a bloc aims to increase energy intensity 20 percent by 2020 and 30 percent by 2025. Energy intensity is the measure of energy efficiency, calculated in terms of units of energy per unit of gross domestic product (GDP).

At present the approach to energy efficiency policy in Southeast Asia countries differs according to scope, time frame and objectives.

Since buildings account for about 40 percent of total final energy consumption in Southeast Asia, they hold some of the highest potential for cost-effective energy savings here. The use of building energy codes is one example of an energy-efficient strategy.

Thailand and Indonesia, for instance, have building codes to encourage energy-efficient design and construction. Thailand’s latest building code, which came into effect in mid-2018, applies to 10,000 square-metre buildings and regulates how lighting, hot water, and air conditioning systems are to be set up. The new codes are expected to increase energy efficiency by up to 10 percent. Singapore, meanwhile, in a bid to make 80 percent of its buildings green by 2030, incorporates use of data analytics to optimise energy usage in its existing buildings’ energy systems.

In fact, technology will be key to achieving real energy savings in the future. At its peak, technology is capable of saving 40 percent of current primary energy use while reducing carbon dioxide emissions by 13.5 billion tons, BP estimates in its BP Technology Outlook report of 2018.

Energy efficient transportation

Such energy savings also extend to transportation, where electric cars, connected vehicles and driverless technology is expected to change the face of transportation quite significantly in the future.

Alongside other Southeast Asian nations, Singapore may have made the most headway here, having already tested both, electric cars and buses on its transportation network so far. Thailand, on the other hand, is seeking to become an EV (electric vehicle) manufacturing hub, with plans to offer tax deductions and non-tax privileges to EV manufacturers in the pipeline.

EVs remain relatively expensive to purchase in Southeast Asia compared to conventional vehicles, in addition to requiring charging stations to operate. The necessary infrastructure, such as full electrification and charging stations need to be in place before EVs can take off in this region. The development of newer battery technologies such as solid-state batteries reduce charging times and the cost of replacements, making this change a sooner rather than later possibility.

Southeast Asia is otherwise looking to improve public transport adoption, put in place fuel economy standards and encourage the adoption of liquid biofuels as an alternative to fossil fuel products, in order to improve overall transport energy efficiency.

Future energy demand in Southeast Asia’s industrial sector is likely to be driven mainly by its manufacturing industry, encompassing the production of steel, automobiles, cement, petrochemicals and chemicals. According to analysis by BP, there are technically and economically viable routes to cut overall industrial energy demand by between 10 – 20 percent by 2050, where improvements are made to production processes. Singapore’s Energy Conservation Act, for instance lays out mandatory energy management practices, such as the requirement to monitor and report energy use and emissions, to appoint an energy manager and to submit energy-efficiency improvement plans from time-to-time.

Other possible policies include the introduction of Minimum Energy Performance Standards (MEPS) for industrial-scale electric motors and other categories of industrial equipment, such as heating and cooling equipment, and air compressors. Other than that, the constant sharing of best operating and management practices between industries should also be encouraged.

Over the long term, this will create the energy security Southeast Asia needs, while also helping it reduce its global carbon footprint. Policy and regulation are necessary to spearhead progress in achieving these energy goals, but it is ultimately the implementation that counts.

  • Renewables

Posco Daewoo to construct free solar plant in Myanmar

9 December 2018

 – 

  • Myanmar

Posco Daewoo, the trading unit of Posco, held a groundbreaking ceremony for a solar plant that it will build for free of charge on an island in Myanmar in hopes of boosting ties with the country, the company said Sunday

The latest project, put together at the request of Myanmar’s Ministry of Electricity and Energy, will offer electricity to some 1,000 households on Manaung Island, the company said.

“We are delighted to be able to provide practical help to Myanmar. We also hope to forge a cooperative relationship with Myanmar in the energy business by clinching an LNG terminal and independent power producer deals,” said Posco Daewoo CEO Kim Young-sang.

Posco Daewoo is seeking to construct the terminal there to supply liquefied natural gas across Myanmar and China alongside a plant that produces over 500 megawatts using gas brought in via the terminal, the company said.

Kim attended the groundbreaking ceremony Saturday, joined by Myanmar’s Electricity and Energy Minister U Win Khaing and Rakhine State Chief Minister U Nyi Pu on Manaung Island.

According to the firm’s time line, the new facility will be completed in the first half of next year by uniting a 500-kilowatt solar power generator and energy storage system.

By Kim Bo-gyung ([email protected])

  • Energy Economy , 
  • Renewables

Financing renewable energy development

9 December 2018

 – 

  • Vietnam

What is the overall objective of the Vietnam Energy Partnership Group?

The Vietnam Energy Partnership Group (VEPG) was established in June 2017 under an agreement between the Vietnamese government and development partners with the purpose of strengthening mutual partnerships and better aligning and co-ordinating external support to the Vietnamese energy sector. The VEPG is chaired by the Ministry of Industry and Trade (MoIT), and co-chaired by the Delegation of the European Union to Vietnam and the World Bank.

The overall objective of the VEPG is to work towards effective and efficient international support to sustainable energy development in Vietnam, in line with national laws and international agreements.

To deliver on this goal, the VEPG serves as a multi-level forum that supports policy and technical dialogue on energy development in the context of the UN’s Sustainable Development Goals and the Paris Agreement on climate change. It provides a platform to align external support with Vietnam’s energy and climate change strategies and action plans, international commitments, and private investments, thereby reinforcing coherence and effectiveness and avoiding the duplication of aid delivery. Furthermore, through information sharing and communications between national and international stakeholders, the VEPG contributes to enhancing learning and improving information-based decision making.

The VEPG focuses on five priority areas – renewable energy, energy efficiency, energy sector reform, energy access, and energy data and statistics. Through dedicated Technical Working Groups, it provides relevant, high-level input, and recommendations to inform the policy development and planning processes in the Vietnamese energy sector.

Vietnam will need around $150 billion to invest in ­developing the national ­electricity grid and resources by 2030. How will the country be able to mobilise such a significant volume of capital?

This is an important issue. In the revised Power Master Plan VII, Vietnam is poised to require $148 billion worth of investment in generation and distribution capacity through to 2030, as Vietnam needs to boost its installed capacity to 61 gigawatts (GW), 97GW, and 127.7GW by 2020, 2025, and 2030, respectively.

Among the necessary measures, firstly it should attract investment from the private sector into the energy sector. The question remains how the private sector can take a more integral part in power sector financing? Previously, only state-owned companies such as EVN, Petro Vietnam or Vinacomin made investments into the power sector.

Besides increasing the power supply, it needs to control demand and save energy. The policies and instruments including the incentive and sanctioning mechanisms should be customised to promote energy efficiency.

Vietnam sets the efficiency rate of 8-10 per cent of relative to the business-as-usual scenario of the total national commercial energy consumption for 2019-2030. The current two prevailing trends in the global energy industry are ensuring energy efficiency and conservation, and applying environmentally friendly technologies, looking to develop a low-carbon economy, green industries, and changing current production and consumption models for sustainable ones.

Vietnam has and will continue paying due heed to these measures in the future to achieve its targets of energy security and sustainable development.

How should the country ­balance coal-fired power and sustainable development?

Entirely rejecting coal-fired power stations would put the country’s energy security at risk, which cannot be allowed. Coal-fired plants will have little impact on the environment if they use good technologies. The country needs to develop all kinds of energy sources based on energy demand. The MoIT is seeking an optimal energy mix with diverse sources like hydropower, coal, gas, and renewables.

The long-term development orientations and strategies presented by the Vietnamese government for the power sector are closely attached to sustainable development, gearing towards modernisation to ensure power efficiency and conservation. This is also aimed to boost the development of new renewable energy sources combined with the implementation of the smart grid programme and competitive power market development.

Ousmane Dione- Country director, World Bank in Vietnam

Vietnam has been a global success story in developing the power sector over the last few decades. This success has been a key contributor to the country’s socio-economic development, high and sustained economic growth, excellent performance in terms of poverty reduction, and the general wellbeing of its citizens. Two areas need to be highlighted on this success story – one is on rural electrification, and the other on power sector reform.

On rural electrification, Vietnam’s access rate increased from 14 per cent in 1993 to over 99 per cent this year. Over that 25-year period, more than 14 million households or 60 million people have been connected to the grid. It is an incredible achievement.

Needless to say, the financing requirements of the sector have been huge. Only since 2010, the sector invested about $80 billion in generation, transmission and distribution, and between now and 2030, another about $150 billion needs to be raised. Electricity consumption remains comparatively low by international standards. For example, per capita electricity consumption is currently about 1,700-kilowatt-hour a year, which is one-third of China or one-fifth of Australia. As the economy continues to grow strongly and as the Vietnamese become more affluent, electricity demand will continue to grow at about 8 per cent per year for the next decade.

Electricity tariffs remain below full cost recovery levels and Electricity of Vietnam (EVN) does not receive direct subsidies from the Vietnamese government. Hence, let me stress that EVN and the sector have been highly effective and efficient using official development assistance (ODA) funds. Of course, this was only possible because of the leadership, dedication and technical capabilities of the Ministry of Industry and Trade (MoIT) and EVN management and its staff.

On power sector reform, about a decade ago the government set out a clear roadmap for implementing competition and restructuring the sector. The motivation was to move from a vertically integrated monopolistic market structure to a fully competitive power market. The government needs to be complemented to continue to be fully committed to introduce a competitive power market. We are half-way through implementation, and by 2020 the wholesale electricity market will be fully operational. Experience with market liberalisation have been positive to date contributing to a well-run power sector public utility EVN, which is technically and operationally sound, but also allowing private sector participation in generation.

I believe I can speak on behalf of all the development partner community that we have been privileged to contribute to that success story. International finance institutions and bilateral donors have provided technical assistance and financing over the last two decades to support the government on the rural electrification agenda, upgrade and expand vital transmission and distribution networks, develop public and private power generation projects and support the electricity and gas sector reform and restructuring agenda.

The challenge is the future and the energy sector cannot rest on past achievements. It is widely known that the challenges the power sector needs to overcome over the next two decades are substantial to ensure it achieves its goals to provide sustainable, clean, affordable and reliable power supply to the people of Vietnam.

One key question is how to meet future energy demand, while also complying with government’s objectives to reduce greenhouse gas emissions and meet its climate change targets. That of course refers to the contentious issue on the role of coal in the future energy mix.

Another challenge is how to mobilise the large investment requirements, estimated at around $8 billion annually to meet fast growing power demand. EVN and the public sector cannot raise those funds and private sector, both domestic and international, will need to play a more prominent role in power sector financing.

To tackle those two key challenges, the World Bank’s strategic energy engagement in Vietnam centers around two initiatives.

First, on the energy transition – we support the government to identify and implement technically, financially and socially sound solutions to reduce the future use of coal, primarily for power generation. While there are no quick fixes or a silver bullet to tackle the coal challenge, we believe there are four central activities that need to be implemented in parallel by the government to reduce coal update for power generation: scaling up renewable, especially wind and solar; promoting natural gas and liquefied natural gas; increasing energy efficiency investments; and promoting regional power trade, especially with Laos and southern China.

Second, the public sector and ODA financing will not be sufficient to meet the power sector’s huge investment requirements. Hence, under the bank’s Maximizing Finance for Development initiative, we are supporting the government to find and implement solutions to bring in more private and commercial financing for the energy sector.

This initiative is particularly relevant in the context of Vietnam’s recent IBRD graduation and sovereign borrowing constraints due to the government’s debt ceiling policy. Three key pillars need to be tackled to mobilise more private and commercial finance in the power sector. These are launching a competitive IPP programme in power generation as part of Power Sector Development Plan 8 with a contractual framework that attracts both international and domestic investment; preparing electricity and gas state-owned enterprises to access commercial finance through credit ratings and non-sovereign bond issuance; and supporting banking and capital market reforms to improve availability of local currency finance, which is critical for both projects and corporate finance for energy investment projects.
  • Energy Economy , 
  • Others

PH now open for natural gas investors — Cusi

8 December 2018

 – 

  • Philippines

TAGUIG CITY, Dec. 9 — Department of Energy (DOE) Secretary Alfonso G. Cusi today signed a Memorandum of Agreement (MOA) with the UP Statistical Center Research Foundation, Inc. (UPSCRFI) on the implementation of the Philippine Downstream Natural Gas Regulation (PDNGR).

“The Philippines has been striving to make waves in the energy industry. Looking at the country’s current energy landscape through the Energy Trilemma lens, we have been performing exceptionally well in terms of environmental sustainability, but lagging in terms of energy security and equity,” Sec. Cusi said.

He added, “Projects like this, which help develop the country’s LNG industry, will bring us closer to attaining our energy goals in the midst of Malampaya’s forthcoming depletion and our ever growing energy demand. The county is open for business. The DOE is ready for business.”

He stressed the signing of the MOA is a major step in pushing the efficient and effective regulation of the country’s downstream natural gas industry.

Meanwhile, in his opening remarks, Senator Sherwin Gatchalian enumerated reasons supporting the development of the country’s LNG market. These include Malampaya’s depletion and other energy security issues, the relevance of the Paris Agreement reached at the 21st Conference of Parties (COP21), the adoption of renewable energy (RE) sources in the power supply mix, and the country’s availability for investors.

DOE Undersecretary Donato D. Marcos, on the other hand, presented emerging policies and challenges of the country’s natural gas industry, during which he highlighted the necessity and potential demand of LNG importation.

Aligned with the DOE’s goal to fast-track the establishment of a distributing and receiving LNG facility, the Gas Policy Development Project (GPDP) will provide technical assistance to DOE in implementing Department Circular No. 2017-11-2012, or the PDNGR.

DOE Assistant Secretary Leonido Pulido III concluded the program by extending the DOE’s gratitude and enthusiasm in working with its partners from the academe.

Also present at the launching were DOE Assistant Secretary Caron E. Lascano, US Embassy Deputy Chief of Mission John Law, UPSCRFI President Dr. Gervacio Selda Jr., Senior Attorney for Energy and Finance Atty. Mohamed Rali Badissy, GPDP Project Director Dr. Ramon Clarete, United States Department of State Senior Foreign Assistance Planning Officer Levi White, other DOE officials and energy stakeholders. (DOE)

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