First Philippine Holdings to deploy solar, wind projects regardless of FIT
THE LOPEZ-LED POWER DISTRIBUTOR WILL FOCUS ON ITS COMMITMENT TO BRINGING A
LESS CARBONIZED ENERGY FUTURE BY DEPLOYING SOLAR AND WIND DEVELOPMENTS IN
THE COMPETITIVE ARENA.
Solar and wind projects under the First Philippine Holdings will still
proceed regardless of feed-in tariff (FIT) incentives, citing that the
regime is just a transitory mechanism to encourage the early entry of
renewables into the country's power mix, company chairman and CEO Federico
Lopez said in a statement on Monday.
Currently, the group recorded seven megawatts (MW) of solar energy in its
portfolio and will look into doubling its capacity over the next 12 months
via a combination of utility-scale and rooftop installations.
"The tricky part is getting contracts for the output of the solar plants. In
the meantime, what makes more sense at this stage is the rooftop solar for
commercial and industrial users," President and COO Francis Giles Puno said.
FPH's power generation and energy distribution are operated under First Gen
Corp., which houses renewable energy arm Energy Development Corp. (EDC).
EDC is also in talks with retail giant Gaisano Group for more solar rooftop
installations in its malls, along with other commercial and industrial
developers.
"It's not only mall operators but also factories. We're also doing that also
in our industrial park where obviously there will be a lot of factories. And
we hope that we'll be able to install more solar rooftop in those
factories," Puno said.
Last year, EDC formally announced its solar rooftop project joint-venture
with Cebu's Gaisano Capital for its mall in La Paz, Iloilo City. The 1.03 MW
solar rooftop system was completed in January 2017, the largest of its own
in the city.
EDC president and COO Richard Tantoco said that the firm is also looking
into wind developments in Iloilo, citing that the area has the best
potential in building nine wind concessions. Once market and construction
conditions are favorable, the renewable energy arm will push with the Iloilo
wind project's business development.
"We're analyzing constructability issues, and obviously we have to wait for
that point in time where the project can go ahead based on market conditions
and what tariff is available in the market," Tantoco said.
According to various studies, Iloilo City can fill 40 up to 54 wind turbines
along its hilly slopes.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/05/31/first-philippine-holdings-deploy-sola
r-wind-projects-regardless-fit/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Wednesday, May 31, 2017
Power system master plan underway in Laos
Power system master plan underway in Laos
Ministry of Energy and Mines, Japan International Cooperation Agency (JICA)
Laos and Electricite du Laos (EDL) have cooperated to launch the Power
System Master Plan project in Laos.
The 18 month project will bring benefits across all of Laos with project
commencement date to be recognised from the first arrival of JICA technical
experts in the country for the implementation.
Expected goals under the project, which will be attained after project
completion, are to secure domestic power supply and enhance regional power
exchange in a sustainable, reliable, and efficient manner for realising
steady socioeconomic development in Laos.
A long-term power network system development plan and roadmap for
implementation of the plan will be formulated to meet both domestic power
demand and regional power exchange between neighbouring countries and
establish management mechanisms for sustainable and efficient power system
operation.
In addition, codes and regulations will be established to develop a
reliable, efficient and sustainable power system for domestic and
international domains in accordance with national and international rules
and standards.
A cooperation agreement signing ceremony for the project took part yesterday
in Vientiane, between Director General of Energy Policy and Planning
Department under the Ministry of Energy and Mines, DrChansavengBoungnong,
Chief Representative of JICA Laos, Mr Yoshiharu Yoneyama and Managing
Director of EDL, MrBounoumSyvanpheng.
Project tasks will be jointly carried out by Ministry of Energy and Mines,
JICA Laos and EDL experts.
According to the tentative 2017-18 project schedule, a review of power
development scenarios in Laos up to 2030 and the formulation of a power
network system development plan will be undertaken.
The review will include an assessment of the current power sector,
electricity demand forecasts in Laos, information collection of power
development plans of neighbouring countries, plus data collection on
hydropower development and generation development plans both domestically
and for export.
Meanwhile, formulating the power network system development plan includes
examination of EDL issues, environmental and social considerations and
formulation of an implementation roadmap for the plan.
Besides that, a new "Grid Code" will be proposed to harmonise with
neighbouring countries along with capacity building of power system
operations.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.vientianetimes.org.la/FreeContent/FreeConten_Power.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Ministry of Energy and Mines, Japan International Cooperation Agency (JICA)
Laos and Electricite du Laos (EDL) have cooperated to launch the Power
System Master Plan project in Laos.
The 18 month project will bring benefits across all of Laos with project
commencement date to be recognised from the first arrival of JICA technical
experts in the country for the implementation.
Expected goals under the project, which will be attained after project
completion, are to secure domestic power supply and enhance regional power
exchange in a sustainable, reliable, and efficient manner for realising
steady socioeconomic development in Laos.
A long-term power network system development plan and roadmap for
implementation of the plan will be formulated to meet both domestic power
demand and regional power exchange between neighbouring countries and
establish management mechanisms for sustainable and efficient power system
operation.
In addition, codes and regulations will be established to develop a
reliable, efficient and sustainable power system for domestic and
international domains in accordance with national and international rules
and standards.
A cooperation agreement signing ceremony for the project took part yesterday
in Vientiane, between Director General of Energy Policy and Planning
Department under the Ministry of Energy and Mines, DrChansavengBoungnong,
Chief Representative of JICA Laos, Mr Yoshiharu Yoneyama and Managing
Director of EDL, MrBounoumSyvanpheng.
Project tasks will be jointly carried out by Ministry of Energy and Mines,
JICA Laos and EDL experts.
According to the tentative 2017-18 project schedule, a review of power
development scenarios in Laos up to 2030 and the formulation of a power
network system development plan will be undertaken.
The review will include an assessment of the current power sector,
electricity demand forecasts in Laos, information collection of power
development plans of neighbouring countries, plus data collection on
hydropower development and generation development plans both domestically
and for export.
Meanwhile, formulating the power network system development plan includes
examination of EDL issues, environmental and social considerations and
formulation of an implementation roadmap for the plan.
Besides that, a new "Grid Code" will be proposed to harmonise with
neighbouring countries along with capacity building of power system
operations.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.vientianetimes.org.la/FreeContent/FreeConten_Power.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines agency selects contractors for 43.5-MW Balog Balog hydropower plant
Philippines agency selects contractors for 43.5-MW Balog Balog hydropower
plant
The Philippines' National Irrigation Administration has signed a contract
with ITP Construction Inc. and the Guangxi Hydroelectric Construction Bureau
Co. Ltd. to construct the dam and other structures associated with the
43.5-MW Balog Balog hydropower plant.
The US$116.6 million contract will pay for the second phase of the project,
which will be locaed on the upper Bulsa River near Tarlac.
The primary purpose of the Balog Balog reservoir is to provide water for
year-round growing of rice and other crops, though officials are also
touting its role in flood mitigation and fish production.
HydroWorld.com reported that the World Bank, on behalf of the Philippines
government, was soliciting consultants to provide legal, economic and
technical assistance for the project in 2011.
The NIA reaffirmed its intent to move forward with the development of a
number of other hydropower projects on its exisitng irrigation and future
irrigation projects earlier this week. According to previous studies by the
agency, there are 357 potential irrigation sites for hydropower in the
country.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.hydroworld.com/articles/2017/05/philippines-agency-selects-contra
ctors-for-43-5-mw-balog-balog-hydropower-plant.html?cmpid=enl_hydroworld_hyd
roupdates_2017-05-30&email_address=johndiecker@gmail.com&eid=287675795&bid=1
768483
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
plant
The Philippines' National Irrigation Administration has signed a contract
with ITP Construction Inc. and the Guangxi Hydroelectric Construction Bureau
Co. Ltd. to construct the dam and other structures associated with the
43.5-MW Balog Balog hydropower plant.
The US$116.6 million contract will pay for the second phase of the project,
which will be locaed on the upper Bulsa River near Tarlac.
The primary purpose of the Balog Balog reservoir is to provide water for
year-round growing of rice and other crops, though officials are also
touting its role in flood mitigation and fish production.
HydroWorld.com reported that the World Bank, on behalf of the Philippines
government, was soliciting consultants to provide legal, economic and
technical assistance for the project in 2011.
The NIA reaffirmed its intent to move forward with the development of a
number of other hydropower projects on its exisitng irrigation and future
irrigation projects earlier this week. According to previous studies by the
agency, there are 357 potential irrigation sites for hydropower in the
country.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.hydroworld.com/articles/2017/05/philippines-agency-selects-contra
ctors-for-43-5-mw-balog-balog-hydropower-plant.html?cmpid=enl_hydroworld_hyd
roupdates_2017-05-30&email_address=johndiecker@gmail.com&eid=287675795&bid=1
768483
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Clean coal can reduce emissions in SEAsia
Clean coal can reduce emissions in SEAsia
Investing in low emissions coal plants in Southeast Asia is one of the most
efficient strategies for reducing greenhouse gas emissions in the region, a
new report by the Asean Center for Energy (ACE) and the World Coal
Association (WCA) claimed.
The report, "Asean's Energy Equation--the role of low emission coal in
driving a sustainable energy future," said that the Asean could accelerate
achievement of emissions reduction goals under the Paris Agreement while
still meeting growing electricity demand through the use of critical and
supercritical coal generation plants.
Citing the 4th Asean Energy Outlook, which was published last year, ACE
Executive Director Sanjayan noted, "Asean's energy demand is expected to
grow by 2.7 times in the next two decades, and coal continues to be a major
contributor in our energy mix."
Velautham continued, "With about 100 million people without electricity, the
delivery of affordable, reliable and sustainable electricity is crucial to
Asean's predicted economic growth. That's why we at ACE believe that viable
modern coal technologies are essential in ensuring that coal is used in a
sustainable way that will balance both the economic needs and climate
commitments. Collaborative efforts support ASEAN to make informed decisions
on energy policies."
The report, which is essentially an extended cost-benefit analysis,
concludes that shifting the energy mix from coal across the region away from
subcritical coal plants to newer critical or supercritical technologies
could reduce CO2 emissions between 2.0 billion and 3.3 billion metric tons
over the next 40 years. The report said the reduction would be equivalent to
the combined annual CO2 emissions of the US, EU, and China, the world's
three biggest emitters.
"This action is expected to accelerate the achievement of global climate
objectives without sacrificing economic and social development needs in the
region," the report said.
Chief Executive Benjamin Sporton of the WCA commented in a statement, "It is
important to inject realism into the debate on how to reduce emissions
across Asia. There is no question that cleaner coal is the lowest cost
option among all available low-carbon technologies in Asean--a region that
is rapidly urbanizing and industrializing. Coal is forecast to be an
essential part of Asean's economic growth. This reality means that it is
only logical that the rapidly industrializing and urbanizing economies of
Asia that are choosing to use coal do so with the lowest emissions
technologies."
'No such thing as clean coal'
Environmental group Greenpeace, which has done extensive work to discourage
the use of coal power in any form, took exception to the positioning of coal
as an environmental and economic advantage for countries in Southeast Asia.
Pointing out that it was not surprising that an organization like the WCA
would be support the expansion of coal, climate and energy campaigner Reuben
Muni of Greenpeace Philippines commented, "As we know, the coal industry is
declining in the US and Europe, and regions like Southeast Asia are seen as
a sort of new frontier for business."
"Clean coal doesn't remove pollution, it just moves it to different
streams," Muni said. "There really is no such thing as 'clean' coal--the
costs to public health from coal are well-documented. 'Clean coal' is just
the coal industry's attempt to greenwash their polluting technology."
According to a study conducted by researchers from Harvard University, the
University of Colorado, and Greenpeace International and published just this
past January, nearly 20,000 excess deaths attributable to coal emissions
occur in Southeast Asia and China each year. If coal power expands according
to present plans, the study concluded, those deaths would increase to more
than 69,000 per year by 2030.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.energycentral.com/news/clean-coal-can-reduce-emissions-seasia?utm
_medium=eNL&utm_campaign=PG_NEWS&utm_content=405584&utm_source=2017_05_30
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Investing in low emissions coal plants in Southeast Asia is one of the most
efficient strategies for reducing greenhouse gas emissions in the region, a
new report by the Asean Center for Energy (ACE) and the World Coal
Association (WCA) claimed.
The report, "Asean's Energy Equation--the role of low emission coal in
driving a sustainable energy future," said that the Asean could accelerate
achievement of emissions reduction goals under the Paris Agreement while
still meeting growing electricity demand through the use of critical and
supercritical coal generation plants.
Citing the 4th Asean Energy Outlook, which was published last year, ACE
Executive Director Sanjayan noted, "Asean's energy demand is expected to
grow by 2.7 times in the next two decades, and coal continues to be a major
contributor in our energy mix."
Velautham continued, "With about 100 million people without electricity, the
delivery of affordable, reliable and sustainable electricity is crucial to
Asean's predicted economic growth. That's why we at ACE believe that viable
modern coal technologies are essential in ensuring that coal is used in a
sustainable way that will balance both the economic needs and climate
commitments. Collaborative efforts support ASEAN to make informed decisions
on energy policies."
The report, which is essentially an extended cost-benefit analysis,
concludes that shifting the energy mix from coal across the region away from
subcritical coal plants to newer critical or supercritical technologies
could reduce CO2 emissions between 2.0 billion and 3.3 billion metric tons
over the next 40 years. The report said the reduction would be equivalent to
the combined annual CO2 emissions of the US, EU, and China, the world's
three biggest emitters.
"This action is expected to accelerate the achievement of global climate
objectives without sacrificing economic and social development needs in the
region," the report said.
Chief Executive Benjamin Sporton of the WCA commented in a statement, "It is
important to inject realism into the debate on how to reduce emissions
across Asia. There is no question that cleaner coal is the lowest cost
option among all available low-carbon technologies in Asean--a region that
is rapidly urbanizing and industrializing. Coal is forecast to be an
essential part of Asean's economic growth. This reality means that it is
only logical that the rapidly industrializing and urbanizing economies of
Asia that are choosing to use coal do so with the lowest emissions
technologies."
'No such thing as clean coal'
Environmental group Greenpeace, which has done extensive work to discourage
the use of coal power in any form, took exception to the positioning of coal
as an environmental and economic advantage for countries in Southeast Asia.
Pointing out that it was not surprising that an organization like the WCA
would be support the expansion of coal, climate and energy campaigner Reuben
Muni of Greenpeace Philippines commented, "As we know, the coal industry is
declining in the US and Europe, and regions like Southeast Asia are seen as
a sort of new frontier for business."
"Clean coal doesn't remove pollution, it just moves it to different
streams," Muni said. "There really is no such thing as 'clean' coal--the
costs to public health from coal are well-documented. 'Clean coal' is just
the coal industry's attempt to greenwash their polluting technology."
According to a study conducted by researchers from Harvard University, the
University of Colorado, and Greenpeace International and published just this
past January, nearly 20,000 excess deaths attributable to coal emissions
occur in Southeast Asia and China each year. If coal power expands according
to present plans, the study concluded, those deaths would increase to more
than 69,000 per year by 2030.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.energycentral.com/news/clean-coal-can-reduce-emissions-seasia?utm
_medium=eNL&utm_campaign=PG_NEWS&utm_content=405584&utm_source=2017_05_30
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
ABB and Phoenix Solar partner on floating solar in Singapore
ABB and Phoenix Solar partner on floating solar in Singapore
Swedish-Swiss technology leader ABB is partnering with the Singaporean
subsidiary of Phoenix Solar for a 1MW floating solar project in west
Singapore.
The companies first announced the project in November 2016 when taking part
in tests for the plant with the Solar Energy Research Institute of Singapore
(SERIS). Phoenix Solar was the installer of the first floating PV system in
Southeast Asia and now brings the landmark solar PV test-bed that measures
one hectare.
The energy generated from the plant will be fed into the national grid, and
will providing enough clean energy to power up to 250 households.
"We are proud to support this important project in Singapore with our
technological expertise and domain knowledge," said Tarak Mehta, president
of ABB's Electrification Products division. "This project is perfectly
aligned with our Next Level strategy around the energy revolution and is an
important step in collaborating with partners to bring more renewables into
the future energy mix."
Singapore is an ideal location for floating PV, as the country struggles
with limited land availability and is surrounded by water. Moreover,
floating panels may be 11% more efficient than panels installed on land,
according to ABB, as the floating panels are naturally cooled by the
surrounding water, which increases efficiency yields.
Located in the Tengeh Reservoir, the installation features multiple solar
solutions from providers to study the performance and cost-effectiveness of
floating solar platforms. ABB supplied 100kW of its TRIO-50 solar inverters
to Phoenix Solar, one of several system integrators for the project.
Additionally, ABB claim its low-voltage moulded case and miniature circuit
breakers protect the electrical circuits on the water.
In related news, the world's largest floating PV plant in China, with a
capacity of 40MW was recently completed.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.pv-tech.org/news/abb-and-phoenix-solar-partner-on-floating-solar
-in-singapore
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Swedish-Swiss technology leader ABB is partnering with the Singaporean
subsidiary of Phoenix Solar for a 1MW floating solar project in west
Singapore.
The companies first announced the project in November 2016 when taking part
in tests for the plant with the Solar Energy Research Institute of Singapore
(SERIS). Phoenix Solar was the installer of the first floating PV system in
Southeast Asia and now brings the landmark solar PV test-bed that measures
one hectare.
The energy generated from the plant will be fed into the national grid, and
will providing enough clean energy to power up to 250 households.
"We are proud to support this important project in Singapore with our
technological expertise and domain knowledge," said Tarak Mehta, president
of ABB's Electrification Products division. "This project is perfectly
aligned with our Next Level strategy around the energy revolution and is an
important step in collaborating with partners to bring more renewables into
the future energy mix."
Singapore is an ideal location for floating PV, as the country struggles
with limited land availability and is surrounded by water. Moreover,
floating panels may be 11% more efficient than panels installed on land,
according to ABB, as the floating panels are naturally cooled by the
surrounding water, which increases efficiency yields.
Located in the Tengeh Reservoir, the installation features multiple solar
solutions from providers to study the performance and cost-effectiveness of
floating solar platforms. ABB supplied 100kW of its TRIO-50 solar inverters
to Phoenix Solar, one of several system integrators for the project.
Additionally, ABB claim its low-voltage moulded case and miniature circuit
breakers protect the electrical circuits on the water.
In related news, the world's largest floating PV plant in China, with a
capacity of 40MW was recently completed.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.pv-tech.org/news/abb-and-phoenix-solar-partner-on-floating-solar
-in-singapore
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam: EVN commissions 600 MW Thai Binh-1 coal-fired power plant
Vietnam: EVN commissions 600 MW Thai Binh-1 coal-fired power plant
Vietnamese national power utility Electricity of Viet Nam (EVN) has
connected the 600 MW Thai Binh-1 coal-fired power plant to the national
grid. The project consists of two 300 MW units that are expected to generate
3.3 TWh/year. It was developed by EVN, in partnership with Electricity
Generation Corporation 3 (EVNGENCO 3). Total investment exceeded VND
26,500bn (US$1.16bn), of which 85% were finance through a loan from the
Japan International Cooperation Agency (JICA) and 15% from EVN.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.enerdata.net/publications/daily-energy-news/evn-commissions-600-
mw-thai-binh-1-coal-fired-power-plant-vietnam.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnamese national power utility Electricity of Viet Nam (EVN) has
connected the 600 MW Thai Binh-1 coal-fired power plant to the national
grid. The project consists of two 300 MW units that are expected to generate
3.3 TWh/year. It was developed by EVN, in partnership with Electricity
Generation Corporation 3 (EVNGENCO 3). Total investment exceeded VND
26,500bn (US$1.16bn), of which 85% were finance through a loan from the
Japan International Cooperation Agency (JICA) and 15% from EVN.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.enerdata.net/publications/daily-energy-news/evn-commissions-600-
mw-thai-binh-1-coal-fired-power-plant-vietnam.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam makes a big push for coal, while pledging to curb emissions
Vietnam makes a big push for coal, while pledging to curb emissions
Electricity of Vietnam - is the state power company. It succeeded
brilliantly in the 1990's when ordered to light up thousands of villages.
With Russian help, EVN has done a fair job of building some big dams. In the
new millennium, however, EVN has gone from failure to failure.
The economy is performing well overall, but EVN has been notoriously slow to
change. Current leadership has acknowledged EVN is bloated and inefficient,
wedded to old methods and overly fond of yesterday's technologies, and has
vowed to catch up with the company's ASEAN peers.
Vietnam's "doi moi" reforms made room for capitalism thirty years ago. For
long afterward, however, Soviet-style industrial planning survived at EVN,
and to a considerable extent also at the coal and minerals monopoly
Vinacomin and the oil and gas monopoly, PetroVietnam (PVN).
These three state companies and their nominal supervisors in the Ministry of
Industry's Energy Directorate wield considerable influence in the
institutions and councils of Vietnam's Communist Party.
Until recently, all have been dominated by people who cut their teeth on
five-year plans for heavy industry and were taught that resources exist to
be exploited and that externalities are costless.
EVN, Vinacomin and PVN aren't typical of modern Vietnam, or even of the
state-owned large enterprise sector. In digital telecommunications, for
example, state companies display striking capability to embrace, master and
deploy new technologies.
Nor is the public shy of change. Mobile phones are ubiquitous. In cities and
towns, rooftop solar water heaters have become common. A quarter of a
million rural families have built biodigesters to recycle farm waste into
methane for cooking and heating and fertilizer for their crops.
Up to now In the energy sector, however, Vietnam does not have a
comprehensive, reliable energy database. One consequence is that it is
virtually impossible to calculate the energy-savings impact of any project.
Nor, noted the Asia Development Bank (ADB) late in 2015, is there an
integrated master plan for energy resource development.
EVN has struggled to meet the nation's surging demand for electricity.
Brown-outs are endemic during the dry season. Because it's forbidden to cut
power to foreign-invested factories, households and domestic small business
bear the brunt of cuts, and incidentally pay higher tariffs than industrial
users.
As sites for big hydro were used up, Hanoi's attention turned to coal. In
2011, it announced plans to construct 90 new coal-fired power plants by
2025. That forecast has been revised to zero out a plan to build several
nuclear power plants and, after Vietnam signed on to the Paris Agreement on
CO2 emissions reductions, to promise a substantial role for wind and solar
power.
However, there's little doubt that Vietnam will stick to a coal-centered
strategy thru 2030 (when coal will supply more than 50 pe rcent of nation's
electric power) and probably beyond.
Coal is relatively abundant in Vietnam. Exploiting fields in the nation's
northeast corner, Vinacomin can produce about 50 million tons of high-BTU
coal annually, or roughly 40 percent of estimated demand in 2030.
The rest of the coal Vietnam will need then is likely to be lower BTU coal
from Indonesia or Australia. Leaving externalities aside, coal is cheap and
likely to remain so.
Further, provided they like the price they're offered per
kilowatt-hour,investors will front the entire cost of new coal-fired power
plants.
Vietnam can also count on financial support from aid donors for features of
its energy plan that aim at improving efficiency (even of coal plants) and
lowering overall dependence on coal-fired power. Now that it's reached the
lower middle income rung, Vietnam no longer qualifies automatically for
grant aid.
However, it's one of the nations most vulnerable to climate change. On that
account, Hanoi is in line for a goodly share of the $100 billion annually
that the richest countries have pledged to steer the most challenged toward
a lower carbon future.
Hanoi won't succeed without energy price reform, however. Carrying out its
recently revised power development plan, or indeed any coherent strategy,
depends absolutely on Vietnam's getting power prices right. There are
several reasons for believing that's going to happen at last.
First, EVN is tottering, and notwithstanding its faults and huge debts, the
company's collapse would be catastrophic. It won't get well on a starvation
diet.
Though retail electricity tariffs in Vietnam are among the lowest in
Southeast Asia, the state has been curiously reluctant to raise power
prices. It's said, and may be true, that Hanoi's Communist leaders view
cheap power as "an essential component of the party's social contract."
Insofar as can be discerned, they've preferred to cover EVN's budgetary
shortfalls mainly by shuffling funds around within the national budget and
guaranteeing payments on EVN's ever-growing debt burden.
Second, when power prices are low, there's no incentive to use energy more
efficiently. Vietnam's energy intensity (the amount of energy needed to
produce a dollar's worth of goods or services) is among the highest in the
world. It's no surprise that in the business-as-usual scenario, Vietnam's
energy use is projected to grow far faster than GNP. Will the populace rise
up to protest realistic power prices?
Probably not. In fact, residential consumers as well as investors might
willingly pay more for reliable electricity supply.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.eco-business.com/news/vietnam-makes-a-big-push-for-coal-while-ple
dging-to-curb-emissions/?utm_source=feedburner&utm_medium=feed&utm_campaign=
Feed%3A+eco-business-articles+%28eco-business.com+news%29&utm_content=Netvib
es
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Electricity of Vietnam - is the state power company. It succeeded
brilliantly in the 1990's when ordered to light up thousands of villages.
With Russian help, EVN has done a fair job of building some big dams. In the
new millennium, however, EVN has gone from failure to failure.
The economy is performing well overall, but EVN has been notoriously slow to
change. Current leadership has acknowledged EVN is bloated and inefficient,
wedded to old methods and overly fond of yesterday's technologies, and has
vowed to catch up with the company's ASEAN peers.
Vietnam's "doi moi" reforms made room for capitalism thirty years ago. For
long afterward, however, Soviet-style industrial planning survived at EVN,
and to a considerable extent also at the coal and minerals monopoly
Vinacomin and the oil and gas monopoly, PetroVietnam (PVN).
These three state companies and their nominal supervisors in the Ministry of
Industry's Energy Directorate wield considerable influence in the
institutions and councils of Vietnam's Communist Party.
Until recently, all have been dominated by people who cut their teeth on
five-year plans for heavy industry and were taught that resources exist to
be exploited and that externalities are costless.
EVN, Vinacomin and PVN aren't typical of modern Vietnam, or even of the
state-owned large enterprise sector. In digital telecommunications, for
example, state companies display striking capability to embrace, master and
deploy new technologies.
Nor is the public shy of change. Mobile phones are ubiquitous. In cities and
towns, rooftop solar water heaters have become common. A quarter of a
million rural families have built biodigesters to recycle farm waste into
methane for cooking and heating and fertilizer for their crops.
Up to now In the energy sector, however, Vietnam does not have a
comprehensive, reliable energy database. One consequence is that it is
virtually impossible to calculate the energy-savings impact of any project.
Nor, noted the Asia Development Bank (ADB) late in 2015, is there an
integrated master plan for energy resource development.
EVN has struggled to meet the nation's surging demand for electricity.
Brown-outs are endemic during the dry season. Because it's forbidden to cut
power to foreign-invested factories, households and domestic small business
bear the brunt of cuts, and incidentally pay higher tariffs than industrial
users.
As sites for big hydro were used up, Hanoi's attention turned to coal. In
2011, it announced plans to construct 90 new coal-fired power plants by
2025. That forecast has been revised to zero out a plan to build several
nuclear power plants and, after Vietnam signed on to the Paris Agreement on
CO2 emissions reductions, to promise a substantial role for wind and solar
power.
However, there's little doubt that Vietnam will stick to a coal-centered
strategy thru 2030 (when coal will supply more than 50 pe rcent of nation's
electric power) and probably beyond.
Coal is relatively abundant in Vietnam. Exploiting fields in the nation's
northeast corner, Vinacomin can produce about 50 million tons of high-BTU
coal annually, or roughly 40 percent of estimated demand in 2030.
The rest of the coal Vietnam will need then is likely to be lower BTU coal
from Indonesia or Australia. Leaving externalities aside, coal is cheap and
likely to remain so.
Further, provided they like the price they're offered per
kilowatt-hour,investors will front the entire cost of new coal-fired power
plants.
Vietnam can also count on financial support from aid donors for features of
its energy plan that aim at improving efficiency (even of coal plants) and
lowering overall dependence on coal-fired power. Now that it's reached the
lower middle income rung, Vietnam no longer qualifies automatically for
grant aid.
However, it's one of the nations most vulnerable to climate change. On that
account, Hanoi is in line for a goodly share of the $100 billion annually
that the richest countries have pledged to steer the most challenged toward
a lower carbon future.
Hanoi won't succeed without energy price reform, however. Carrying out its
recently revised power development plan, or indeed any coherent strategy,
depends absolutely on Vietnam's getting power prices right. There are
several reasons for believing that's going to happen at last.
First, EVN is tottering, and notwithstanding its faults and huge debts, the
company's collapse would be catastrophic. It won't get well on a starvation
diet.
Though retail electricity tariffs in Vietnam are among the lowest in
Southeast Asia, the state has been curiously reluctant to raise power
prices. It's said, and may be true, that Hanoi's Communist leaders view
cheap power as "an essential component of the party's social contract."
Insofar as can be discerned, they've preferred to cover EVN's budgetary
shortfalls mainly by shuffling funds around within the national budget and
guaranteeing payments on EVN's ever-growing debt burden.
Second, when power prices are low, there's no incentive to use energy more
efficiently. Vietnam's energy intensity (the amount of energy needed to
produce a dollar's worth of goods or services) is among the highest in the
world. It's no surprise that in the business-as-usual scenario, Vietnam's
energy use is projected to grow far faster than GNP. Will the populace rise
up to protest realistic power prices?
Probably not. In fact, residential consumers as well as investors might
willingly pay more for reliable electricity supply.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.eco-business.com/news/vietnam-makes-a-big-push-for-coal-while-ple
dging-to-curb-emissions/?utm_source=feedburner&utm_medium=feed&utm_campaign=
Feed%3A+eco-business-articles+%28eco-business.com+news%29&utm_content=Netvib
es
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Tuesday, May 30, 2017
Philippines: climate commitment is doable, says ex-solon
Philippines: climate commitment is doable, says ex-solon
An environment advocate believes the Philippines can meet its 70 percent
greenhouse gas (GHG) emission reduction commitment under the Paris agreement
on climate change.
"Our commitment is within reach," said environment advocate and former
senator Heherson Alvarez on Monday during the multi-sector consultation for
the roadmap aimed at helping the Philippines meet such commitment by 2030.
He noted the country has sun, wind and other natural resources that are
available for harnessing into clean renewable energy (RE).
Increasingly harnessing such resources will help the country shift to RE and
replace coal-based power production that's among main generators of GHG
emissions, he noted.
"The bounty of Philippine RE resources will enable us to deliver on our
commitment," he said.
Adopted in December 2015 at the 21st Conference of Parties to the UN
Framework Convention on Climate Change, the Paris agreement seeks avoiding
dangerous climate change through global GHG emission reduction so
temperature rise can be limited to well below 2°C.
Energy expert Roberto Verzola said RE must already account for around 53
percent of Philippine energy mix by 2022 to help the country meet its Paris
Agreement commitment.
Implementing RE projects government already identified will help reach such
energy mix, he noted.
He raised urgency for action, doubtful the Philippines will fulfill its
commitment under the Paris Agreement if government sticks to the Department
of Energy (DOE) plan for RE.
"DOE's plan for RE to have a 30 percent share of the energy mix will result
in only a 12 percent reduction in the country's GHG emissions by 2030," he
said at the event's side.
Alvarez urged the private sector to help mainstream RE in the Philippines.
"Coal plants today account for some 50 percent of Philippine requirements -
this is the challenge technology can help address," he said.
Technological advances are increasingly making RE a viable alternative to
coal-based power, he noted.
He said cost of solar power is particularly becoming more competitive so
this power alternative has much potential for further use in the country.
Scientists continue cautioning about GHG emissions, warning these accumulate
in the atmosphere and trap heat there so global temperature rises resulting
in climate change.
Sea level and temperature rise as well as increasing onslaught of extreme
weather events are climate change's impacts on the Philippines, they said.
The Philippines isn't among major GHG emitters worldwide but is one of
several countries most vulnerable to the changing climate's impacts, they
noted.
Alvarez said countries must collectively prevent global temperature rise
from going beyond the Paris agreement's target threshold.
"Even a 1.5°C rise will already cause polar ice to melt," he noted.
He said such melting will force seas to rise by 2.10 m to 2.40 m.
"That's already enough to inundate a number of our small islands," he said.
Palawan islands are barely 1.5 m above sea level so these face inundation if
polar ice melts, he noted.
Environment advocate Sen. Loren Legarda said some 25 major coastal cities,
800 coastal municipalities and over 60 provinces nationwide are at risk for
flooding due to sea level rise.
"That's even a conservative estimate," she noted.
She further warned climate change will destroy coral reefs and other
habitats, jeopardizing food security.
"We must take action now," she said.
The Philippines committed reducing its GHG emissions subject to developed
countries' support.
Government said such target reduction will come from the energy, transport,
waste, forestry and industry sectors.
Discussions during the multi-sectoral consultation focused on such sectors
and related concerns.
Outputs generated during the consultation will serve as additional inputs
for developing the roadmap that'll help the Philippines meet its commitment
under the Paris Agreement.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article: http://www.pna.gov.ph/articles/991895
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
An environment advocate believes the Philippines can meet its 70 percent
greenhouse gas (GHG) emission reduction commitment under the Paris agreement
on climate change.
"Our commitment is within reach," said environment advocate and former
senator Heherson Alvarez on Monday during the multi-sector consultation for
the roadmap aimed at helping the Philippines meet such commitment by 2030.
He noted the country has sun, wind and other natural resources that are
available for harnessing into clean renewable energy (RE).
Increasingly harnessing such resources will help the country shift to RE and
replace coal-based power production that's among main generators of GHG
emissions, he noted.
"The bounty of Philippine RE resources will enable us to deliver on our
commitment," he said.
Adopted in December 2015 at the 21st Conference of Parties to the UN
Framework Convention on Climate Change, the Paris agreement seeks avoiding
dangerous climate change through global GHG emission reduction so
temperature rise can be limited to well below 2°C.
Energy expert Roberto Verzola said RE must already account for around 53
percent of Philippine energy mix by 2022 to help the country meet its Paris
Agreement commitment.
Implementing RE projects government already identified will help reach such
energy mix, he noted.
He raised urgency for action, doubtful the Philippines will fulfill its
commitment under the Paris Agreement if government sticks to the Department
of Energy (DOE) plan for RE.
"DOE's plan for RE to have a 30 percent share of the energy mix will result
in only a 12 percent reduction in the country's GHG emissions by 2030," he
said at the event's side.
Alvarez urged the private sector to help mainstream RE in the Philippines.
"Coal plants today account for some 50 percent of Philippine requirements -
this is the challenge technology can help address," he said.
Technological advances are increasingly making RE a viable alternative to
coal-based power, he noted.
He said cost of solar power is particularly becoming more competitive so
this power alternative has much potential for further use in the country.
Scientists continue cautioning about GHG emissions, warning these accumulate
in the atmosphere and trap heat there so global temperature rises resulting
in climate change.
Sea level and temperature rise as well as increasing onslaught of extreme
weather events are climate change's impacts on the Philippines, they said.
The Philippines isn't among major GHG emitters worldwide but is one of
several countries most vulnerable to the changing climate's impacts, they
noted.
Alvarez said countries must collectively prevent global temperature rise
from going beyond the Paris agreement's target threshold.
"Even a 1.5°C rise will already cause polar ice to melt," he noted.
He said such melting will force seas to rise by 2.10 m to 2.40 m.
"That's already enough to inundate a number of our small islands," he said.
Palawan islands are barely 1.5 m above sea level so these face inundation if
polar ice melts, he noted.
Environment advocate Sen. Loren Legarda said some 25 major coastal cities,
800 coastal municipalities and over 60 provinces nationwide are at risk for
flooding due to sea level rise.
"That's even a conservative estimate," she noted.
She further warned climate change will destroy coral reefs and other
habitats, jeopardizing food security.
"We must take action now," she said.
The Philippines committed reducing its GHG emissions subject to developed
countries' support.
Government said such target reduction will come from the energy, transport,
waste, forestry and industry sectors.
Discussions during the multi-sectoral consultation focused on such sectors
and related concerns.
Outputs generated during the consultation will serve as additional inputs
for developing the roadmap that'll help the Philippines meet its commitment
under the Paris Agreement.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article: http://www.pna.gov.ph/articles/991895
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam: PV Oil extends strategic share offer to 50%, delays June IPO
Vietnam: PV Oil extends strategic share offer to 50%, delays June IPO
PetroVietnam Oil (PV Oil), Vietnam's sole crude oil exporter, has increased
the percentage of state divestment to almost 65 per cent, from an earlier
fixed limit of 55 per cent.
Accordingly, the parent group, PetroVietnam - representing the state
ownership, will hold only 35.1 per cent equity interest in the company after
the IPO slated in 2017, according to a PV Oil update on its website.
Under the revised privatization proposal, PV Oil will sell as much as 50 per
cent to strategic investors compared to a prior announcement of 49 per cent
stake.
Meanwhile, the shares offered to the public will be retained at 15 per cent.
The company did not disclose the strategic investors, but said interested
bidders included 10 foreign firms from Japan, South Korea, Russia, Middle
East and Southeast Asia, as well as two local investors.
It did not give updates on the number of selected strategic shareholders,
but an earlier notice had pointed out the number will not exceed three
investors.
PV Oil described the larger offered stake "attractive compared to
Petrolimex" - its peer who sold an 8 per cent equity to Japan's JX Nippon
Oil & Energy and currently has a dominating 50 per cent share in the petrol
retailing market.
PV Oil said it had around 22 per cent share.
Giving up the controlling interest in the company, the local state will
still be holding veto power with its 35.1 per cent ownership.
PV Oil said the IPO, earlier expected to take place in June, will be delayed
as privatization enactment had not been fully completed.
Bloomberg reported in March that PV Oil expected to raise at least $270
million from selling 40 per cent to one or two strategic investors, a
threshold that valued the company at $675 million.
Meanwhile, the latest approved corporate value stands at VND10.34 trillion
($453.5 million).
However, strategic investors often pay a bit higher than IPO share prices,
as recorded in other IPOs.
As per expansion plan post privatisation, PV Oil plans to raise $280 million
for M&A purpose within the next five years to boost its market share to 35
per cent.
The company posted a profit before tax at VND222 billion in the first
quarter of 2017, while it made a loss of VND105 billion in the same period
in 2016.
This year, energy titan PetroVietnam is also looking to privatize its
electricity generation unit PV Power, selling 49 per cent equity through IPO
and strategic shares to raise some $600-700 million.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.dealstreetasia.com/stories/vietnam-pv-oil-extends-strategic-shar
e-offer-50-delays-june-ipo-73690/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
PetroVietnam Oil (PV Oil), Vietnam's sole crude oil exporter, has increased
the percentage of state divestment to almost 65 per cent, from an earlier
fixed limit of 55 per cent.
Accordingly, the parent group, PetroVietnam - representing the state
ownership, will hold only 35.1 per cent equity interest in the company after
the IPO slated in 2017, according to a PV Oil update on its website.
Under the revised privatization proposal, PV Oil will sell as much as 50 per
cent to strategic investors compared to a prior announcement of 49 per cent
stake.
Meanwhile, the shares offered to the public will be retained at 15 per cent.
The company did not disclose the strategic investors, but said interested
bidders included 10 foreign firms from Japan, South Korea, Russia, Middle
East and Southeast Asia, as well as two local investors.
It did not give updates on the number of selected strategic shareholders,
but an earlier notice had pointed out the number will not exceed three
investors.
PV Oil described the larger offered stake "attractive compared to
Petrolimex" - its peer who sold an 8 per cent equity to Japan's JX Nippon
Oil & Energy and currently has a dominating 50 per cent share in the petrol
retailing market.
PV Oil said it had around 22 per cent share.
Giving up the controlling interest in the company, the local state will
still be holding veto power with its 35.1 per cent ownership.
PV Oil said the IPO, earlier expected to take place in June, will be delayed
as privatization enactment had not been fully completed.
Bloomberg reported in March that PV Oil expected to raise at least $270
million from selling 40 per cent to one or two strategic investors, a
threshold that valued the company at $675 million.
Meanwhile, the latest approved corporate value stands at VND10.34 trillion
($453.5 million).
However, strategic investors often pay a bit higher than IPO share prices,
as recorded in other IPOs.
As per expansion plan post privatisation, PV Oil plans to raise $280 million
for M&A purpose within the next five years to boost its market share to 35
per cent.
The company posted a profit before tax at VND222 billion in the first
quarter of 2017, while it made a loss of VND105 billion in the same period
in 2016.
This year, energy titan PetroVietnam is also looking to privatize its
electricity generation unit PV Power, selling 49 per cent equity through IPO
and strategic shares to raise some $600-700 million.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.dealstreetasia.com/stories/vietnam-pv-oil-extends-strategic-shar
e-offer-50-delays-june-ipo-73690/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia to become LNG net importer by 2020
Indonesia to become LNG net importer by 2020
Fitch Group's BMI Research said Indonesia is projected to become a net
importer of Liquefied Natural Gas (LNG) by 2020, with an estimated annual
growth rate of 4% over the next 10 years. This was amid the increasing
demand and dwindling output at mature gas fields.
The Jakarta Post reported that the annual growth rate of 4% was attributed
to the biggest demand coming from the power generation sector. However, gas
supplies are set to fall due to natural declines at various mature gas
fields. This would ultimately cause delays to several major projects.
France's largest gas-producer Total E&P Indonesie was estimated to
experience a slump in their supply at the Bontang LNG plant in East
Kalimantan. A drop of 10% was expected this year, citing expenditure cuts in
the current market volatility of oil prices. This was also attributed to the
uncertainties over the ownership of the Mahakam block.
"State-owned Pertamina signed a deal with the United States' Corpus Christie
project starting next year and it also signed an agreement with the United
Arab Emirates (UAE) National Oil Company to purchase LNG supplies from the
UAE counterparts based on needs," the research house said.
"This will see Indonesia becoming a net LNG importer by 2022," it added.
The report said with the country's need for gas imports grows, more term
deals could be coming their way.
Indonesia has exported 3.9 million metric ton of LNG in the first quarter of
the year, a drop by 7.5% year-on-year while falling 15% below the five-year
average.
In May, The Jakarta Post reported the purchase of LNG between Pertamina and
Emirates National Oil company would no longer be carried out through a third
party. The meeting between the Energy and Mineral Resources Minister
Ignasius Jonan and a UAE counterpart Suhail Mohammed Faraj Al Mazroui
sparked discussion over the development of the Ruby gas field in the Sebuku
Block by Mubadala Petroleum, a UAE-base oil, and gas company.
As of May, the value of the investment made by UAE counterparts into
Indonesia reached US$2 billion and an estimated new investment amount worth
US$5 billion following the visit by Suhail.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.ibtimes.sg/indonesia-become-lng-net-importer-by-2020-10650
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Fitch Group's BMI Research said Indonesia is projected to become a net
importer of Liquefied Natural Gas (LNG) by 2020, with an estimated annual
growth rate of 4% over the next 10 years. This was amid the increasing
demand and dwindling output at mature gas fields.
The Jakarta Post reported that the annual growth rate of 4% was attributed
to the biggest demand coming from the power generation sector. However, gas
supplies are set to fall due to natural declines at various mature gas
fields. This would ultimately cause delays to several major projects.
France's largest gas-producer Total E&P Indonesie was estimated to
experience a slump in their supply at the Bontang LNG plant in East
Kalimantan. A drop of 10% was expected this year, citing expenditure cuts in
the current market volatility of oil prices. This was also attributed to the
uncertainties over the ownership of the Mahakam block.
"State-owned Pertamina signed a deal with the United States' Corpus Christie
project starting next year and it also signed an agreement with the United
Arab Emirates (UAE) National Oil Company to purchase LNG supplies from the
UAE counterparts based on needs," the research house said.
"This will see Indonesia becoming a net LNG importer by 2022," it added.
The report said with the country's need for gas imports grows, more term
deals could be coming their way.
Indonesia has exported 3.9 million metric ton of LNG in the first quarter of
the year, a drop by 7.5% year-on-year while falling 15% below the five-year
average.
In May, The Jakarta Post reported the purchase of LNG between Pertamina and
Emirates National Oil company would no longer be carried out through a third
party. The meeting between the Energy and Mineral Resources Minister
Ignasius Jonan and a UAE counterpart Suhail Mohammed Faraj Al Mazroui
sparked discussion over the development of the Ruby gas field in the Sebuku
Block by Mubadala Petroleum, a UAE-base oil, and gas company.
As of May, the value of the investment made by UAE counterparts into
Indonesia reached US$2 billion and an estimated new investment amount worth
US$5 billion following the visit by Suhail.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.ibtimes.sg/indonesia-become-lng-net-importer-by-2020-10650
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: ERC predicts wind-down in licensing of big solar farms
Thailand: ERC predicts wind-down in licensing of big solar farms
Policymakers are expected to bring the curtain down on granting licences for
private solar farm projects this year as the trend of solar power
development has shifted from big farms to small household rooftops that
require no licensing, says the Energy Regulatory Commission (ERC).
Licensing for private solar farms for a total capacity of 119 megawatts was
opened for an application yesterday and is expected to be the last one
offered to state agencies and agricultural cooperatives to operate solar
farms together with private firms, said Veeraphol Jirapraditkul,
commissioner and ERC spokesman.
The ERC said solar power owners or developers with power generating capacity
of less than 1MW are not required to have licences, unlike solar farms,
which need huge areas of development and deliberate details to license the
developments, said Mr Veeraphol.
"Solar power development in Thailand is shifting from solar farms to
rooftops, which are suitable for small businesses and households," he said.
Thailand has solar farms generating a total capacity of 3,100MW, while 83MW
is generated from solar rooftops.
Applicants for the new round of licensing can submit their solar power
development request until June 2. The ERC will screen the applications
before a lucky draw process grants the licences on June 26, Mr Veeraphol
said.
Private investors, state agencies and agricultural cooperatives that are
granted licences will be given deadlines to start commercial operation by
the end of 2018, he said.
The feed-in tariff for this round of licensing was set at 4.12 baht per
kilowatt-hour (unit).
Thailand set a target to have total solar power-generating capacity of
6,000MW by 2036, well above its current level, Mr Veeraphol said.
This year the ERC is expected to grant solar farm licences with a combined
power-generating capacity of 900MW, slightly down from last year's 1,000MW,
he said.
Total investment value in the solar farm business this year could reach 43
billion baht, said Mr Veeraphol.
From now on, the ERC expects to grant renewable power project licences to
private developers for biomass, biogas and waste-to-power projects.
"We expect biomass from sugar millers will play a significant role in
renewable power development over the next several years because most millers
have expanded their capacity to make more sugar waste available for their
biomass power plants," he said.
For the rest of the year, the ERC is expected to license another 300MW for
the development of hybrid renewable power sources for firm power purchasing
agreements (PPA). Under a hybrid firm PPA, private power developers are
allowed to use more than one type of renewable power to enable them
producing more power from wastes and renewable resources, sending power to
the grid on a more constant basis.
Capacity to generate 270MW is expected to be licensed to very small power
producers, while 8MW would be granted to biogas projects and another 80MW
for waste-to-power projects, Mr Veeraphol said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1258922/erc-predicts-wind-down-in-l
icensing-of-big-solar-farms
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Policymakers are expected to bring the curtain down on granting licences for
private solar farm projects this year as the trend of solar power
development has shifted from big farms to small household rooftops that
require no licensing, says the Energy Regulatory Commission (ERC).
Licensing for private solar farms for a total capacity of 119 megawatts was
opened for an application yesterday and is expected to be the last one
offered to state agencies and agricultural cooperatives to operate solar
farms together with private firms, said Veeraphol Jirapraditkul,
commissioner and ERC spokesman.
The ERC said solar power owners or developers with power generating capacity
of less than 1MW are not required to have licences, unlike solar farms,
which need huge areas of development and deliberate details to license the
developments, said Mr Veeraphol.
"Solar power development in Thailand is shifting from solar farms to
rooftops, which are suitable for small businesses and households," he said.
Thailand has solar farms generating a total capacity of 3,100MW, while 83MW
is generated from solar rooftops.
Applicants for the new round of licensing can submit their solar power
development request until June 2. The ERC will screen the applications
before a lucky draw process grants the licences on June 26, Mr Veeraphol
said.
Private investors, state agencies and agricultural cooperatives that are
granted licences will be given deadlines to start commercial operation by
the end of 2018, he said.
The feed-in tariff for this round of licensing was set at 4.12 baht per
kilowatt-hour (unit).
Thailand set a target to have total solar power-generating capacity of
6,000MW by 2036, well above its current level, Mr Veeraphol said.
This year the ERC is expected to grant solar farm licences with a combined
power-generating capacity of 900MW, slightly down from last year's 1,000MW,
he said.
Total investment value in the solar farm business this year could reach 43
billion baht, said Mr Veeraphol.
From now on, the ERC expects to grant renewable power project licences to
private developers for biomass, biogas and waste-to-power projects.
"We expect biomass from sugar millers will play a significant role in
renewable power development over the next several years because most millers
have expanded their capacity to make more sugar waste available for their
biomass power plants," he said.
For the rest of the year, the ERC is expected to license another 300MW for
the development of hybrid renewable power sources for firm power purchasing
agreements (PPA). Under a hybrid firm PPA, private power developers are
allowed to use more than one type of renewable power to enable them
producing more power from wastes and renewable resources, sending power to
the grid on a more constant basis.
Capacity to generate 270MW is expected to be licensed to very small power
producers, while 8MW would be granted to biogas projects and another 80MW
for waste-to-power projects, Mr Veeraphol said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1258922/erc-predicts-wind-down-in-l
icensing-of-big-solar-farms
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Monday, May 29, 2017
Philippines: $2.4-B 'Energy City' in Bataan proposed
Philippines: $2.4-B 'Energy City' in Bataan proposed
A joint venture between the state-run Philippine National Oil Co. (PNOC) and
a private sector group that includes businessman Manuel V. Pangilinan is set
to build a $2.4-billion liquefied natural gas (LNG) terminal in Limay,
Bataan, that will also serve as a special economic zone.
Dubbed "Energy City," the proposed project will be bankrolled by a
consortium that includes Pangilinan, the Gregorio Araneta Inc. holding firm,
and Japanese industrial giant Mitsui and Osaka Gas. The facility will be
built on a nearly 500-hectare property owned by PNOC near the existing
refinery of Petron Corporation.
Once fully operational, the facility will host a 1,600-megawatt power plant
that will be powered by LNG-the output of which will be sold under an
offtake deal with Meralco as well as the power-intensive industrial players
expected to locate their operations in the integrated special economic zone.
"Energy City will provide long-term energy security for the Philippines,
providing the cornerstone for a clean and cost-efficient source of fuel,"
according to briefing materials on the project obtained by the Inquirer.
Negotiations are ongoing between PNOC and the private sector proponents,
although the Energy City proposal was first brought before the government
agency as early as a decade ago during the term of President Arroyo.
The proposal is banking on the environmental benefits of using LNG-a
clean-burning source of electricity-for the power plants whose total
capacity can be scaled up to 2,000 MW once demand from the growing
Philippine economy increases.
Proponents are also betting that the project's proposed location inside a
cove in Bataan across Manila Bay will make it an ideal site for the LNG
facility while giving prospective locators easy access to the capital city.
The site, which is protected from rougher waters of the South China Sea,
also makes it ideal for handling the fuel shipped in from overseas via LNG
tankers.
"The concept for Energy City is an integrated LNG import terminal, LNG
storage facility, re-gasification plant, power generation facility,
co-located industrial operations and a countrywide natural gas distribution
network," the briefing documents said.
In their negotiations with Energy Secretary Alfonso Cusi and PNOC chief
Ruben Lista, the proponents, which include businessman and Araneta
Properties chair Gregorio Araneta III, have indicated that the project could
start immediately and that funding was ready once regulatory approval has
been received.
The first phase of the multibillion-dollar energy project will be ready for
operations by 2020, the documents showed, adding that the facility was
"consistent with the PNOC mandate to ensure stable power supply in order to
sustain the growth of the economy and the well-being of the nation."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.inquirer.net/230356/2-4-b-energy-city-bataan-proposed#ixzz4i
QM64Knl
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
A joint venture between the state-run Philippine National Oil Co. (PNOC) and
a private sector group that includes businessman Manuel V. Pangilinan is set
to build a $2.4-billion liquefied natural gas (LNG) terminal in Limay,
Bataan, that will also serve as a special economic zone.
Dubbed "Energy City," the proposed project will be bankrolled by a
consortium that includes Pangilinan, the Gregorio Araneta Inc. holding firm,
and Japanese industrial giant Mitsui and Osaka Gas. The facility will be
built on a nearly 500-hectare property owned by PNOC near the existing
refinery of Petron Corporation.
Once fully operational, the facility will host a 1,600-megawatt power plant
that will be powered by LNG-the output of which will be sold under an
offtake deal with Meralco as well as the power-intensive industrial players
expected to locate their operations in the integrated special economic zone.
"Energy City will provide long-term energy security for the Philippines,
providing the cornerstone for a clean and cost-efficient source of fuel,"
according to briefing materials on the project obtained by the Inquirer.
Negotiations are ongoing between PNOC and the private sector proponents,
although the Energy City proposal was first brought before the government
agency as early as a decade ago during the term of President Arroyo.
The proposal is banking on the environmental benefits of using LNG-a
clean-burning source of electricity-for the power plants whose total
capacity can be scaled up to 2,000 MW once demand from the growing
Philippine economy increases.
Proponents are also betting that the project's proposed location inside a
cove in Bataan across Manila Bay will make it an ideal site for the LNG
facility while giving prospective locators easy access to the capital city.
The site, which is protected from rougher waters of the South China Sea,
also makes it ideal for handling the fuel shipped in from overseas via LNG
tankers.
"The concept for Energy City is an integrated LNG import terminal, LNG
storage facility, re-gasification plant, power generation facility,
co-located industrial operations and a countrywide natural gas distribution
network," the briefing documents said.
In their negotiations with Energy Secretary Alfonso Cusi and PNOC chief
Ruben Lista, the proponents, which include businessman and Araneta
Properties chair Gregorio Araneta III, have indicated that the project could
start immediately and that funding was ready once regulatory approval has
been received.
The first phase of the multibillion-dollar energy project will be ready for
operations by 2020, the documents showed, adding that the facility was
"consistent with the PNOC mandate to ensure stable power supply in order to
sustain the growth of the economy and the well-being of the nation."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.inquirer.net/230356/2-4-b-energy-city-bataan-proposed#ixzz4i
QM64Knl
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam: Power sector seeks way to go green over power shortage
Vietnam: Power sector seeks way to go green over power shortage
Vietnam's electricity supply might meet only half of total demand in the
future, predicted Tran Trong Quyet, vice chairman of the Southern Power
Association.
Hydropower, renewable and gas-fueled thermal power are expected to provide
48.3 percent of power demand by 2020 and 39.9 percent by 2030, while power
demand is expected to increase 9 - 10 percent each year during 2016 -2030.
Furthermore, the Government halted two nuclear power projects in the central
province of Ninh Thuan, therefore, coal power is needed for power security
but has drawbacks in economic efficiency and environmental pollution.
Quyet said renewable power would be better for the environment but requires
huge initial investment.
Coal power needs a lot of land, causes environmental issues and is
expensive, but still plays an important role in ensuring national power
security, he added.
To limit the impact of coal power, Quyet warned that technology to deal with
coal slag must be used carefully, besides measures to ensure coal supply.
The Electricity of Vietnam (EVN) has used significant sums on treating
exhaust fumes from old coal thermal power plants, including Pha Lai, which
received more than 1.34 trillion VND (58.96 million USD), Hai Phong 1.57
trillion VND (69.08 million USD) and Quang Ninh 1.74 trillion VND (76.56
million VND).
Nguyen Van Thu, Chairman of the Vietnam Association of Mechanical Industry,
stressed the necessity of coal-based energy.
He recommended the Government issue policies and regulations to ensure
sustainable development of this power, instead of enterprises selecting
their own technologies and contractors.
Mentioning 14 coal thermal power projects earmarked for the Mekong Delta
region, he said the construction must be done following strict technology
requirements.
The sun is also a prominent source of energy, with the south paying more
attention to solar power. The EVN Southern Power Corporation is investing in
a solar battery project on Con Dao island.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://en.vietnamplus.vn/power-sector-seeks-way-to-go-green-over-power-short
age/112399.vnp
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam's electricity supply might meet only half of total demand in the
future, predicted Tran Trong Quyet, vice chairman of the Southern Power
Association.
Hydropower, renewable and gas-fueled thermal power are expected to provide
48.3 percent of power demand by 2020 and 39.9 percent by 2030, while power
demand is expected to increase 9 - 10 percent each year during 2016 -2030.
Furthermore, the Government halted two nuclear power projects in the central
province of Ninh Thuan, therefore, coal power is needed for power security
but has drawbacks in economic efficiency and environmental pollution.
Quyet said renewable power would be better for the environment but requires
huge initial investment.
Coal power needs a lot of land, causes environmental issues and is
expensive, but still plays an important role in ensuring national power
security, he added.
To limit the impact of coal power, Quyet warned that technology to deal with
coal slag must be used carefully, besides measures to ensure coal supply.
The Electricity of Vietnam (EVN) has used significant sums on treating
exhaust fumes from old coal thermal power plants, including Pha Lai, which
received more than 1.34 trillion VND (58.96 million USD), Hai Phong 1.57
trillion VND (69.08 million USD) and Quang Ninh 1.74 trillion VND (76.56
million VND).
Nguyen Van Thu, Chairman of the Vietnam Association of Mechanical Industry,
stressed the necessity of coal-based energy.
He recommended the Government issue policies and regulations to ensure
sustainable development of this power, instead of enterprises selecting
their own technologies and contractors.
Mentioning 14 coal thermal power projects earmarked for the Mekong Delta
region, he said the construction must be done following strict technology
requirements.
The sun is also a prominent source of energy, with the south paying more
attention to solar power. The EVN Southern Power Corporation is investing in
a solar battery project on Con Dao island.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://en.vietnamplus.vn/power-sector-seeks-way-to-go-green-over-power-short
age/112399.vnp
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Alsons plans energy investment in Indonesia
Alsons plans energy investment in Indonesia
ALCANTARA-LED Alsons Consolidated Resources, Inc. (ACR) is eyeing Indonesia
for the expansion of its energy portfolio as part of a bid to grow into a
regional energy player and amid the immense potential offered by the Asean
economic integration.
"We are looking at the Celebes, Sulawesi area because of its proximity to
Mindanao and because of the literature that we have read on the plans of
Indonesia to encourage infrastructure and economic development in the
eastern part of Indonesia," ACR chairman and president Tomas Alcantara told
reporters on the sidelines of the company's annual stockholders meeting held
recently.
ACR plans to invest in power in Indonesia, particularly in fossil-fuel based
power which is indigenous to that area.
Alcantara said the Alsons group is talking to its traditional partners.
"Toyota is already there and some Singaporeans," he said, but did not
divulge the names of other potential partners due to non-disclosure
agreements.
Toyota Tsusho Corporation (TTC), the trading company of the Toyota Group, is
ACR's partner in the 210-megawatt coal-fired baseload power plant of
Sarangani Energy Corporation (SEC) in Maasim, Sarangani Province.
The wisdom of looking at Indonesia as a potential market for investment is
because of its proximity to Mindanao's southern cities of Davao and General
Santos, Alcantara explained.
"North Sulawesi is 45 minutes away from Davao by plane.that is how close
Indonesia is. It is like our natural market," he said.
Meanwhile, the Alsons group said business in Mindanao has not been adversely
affected by President Rodrigo Duterte's declaration of Martial Law.
"The declaration of Martial Law over the island of Mindanao has not in any
way disrupted or affected the normal course of Alsons Power's operations,"
Alcantara said.
"We respect and fully support the decision of President Rodrigo Duterte to
institute all legal measures allowed within the framework of the
Constitution in order to ensure the safety and security of the island," he
said.
Alcantara is hopeful that the security situation in Marawi will normalize at
the soonest time possible.
"We are confident that the government is in firm control of the situation
and we remain steadfast in our commitment to the development of the island
of Mindanao and the rest of the Philippines," he added.
He also said all of their projects under development are on track to
completion, including
Section 2 of the 210-MW SEC, projected to commence commercial operations in
the first half of 2019.
Upon its completion, it will provide baseload power to South Cotabato, Davao
del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City, and
other key areas of Mindanao.
The first 105-MW section of the SEC plant began operating in April of 2016.
At a cost of nearly $600 Million, the SEC power plant is the single largest
investment in Sarangani Province and the entire Region 12.
Within 2017, ACR expects to begin construction of the 15-MW Siguil River
run-of-river hydroelectric plant in Maasim, Sarangani; and the 105-MW San
Ramon Power, Inc. (SRPI) baseload coal-fired power plant in Talisayan,
Zamboanga City.
ACR likewise announced that it would soon undertake a solar power project in
the General Santos-Sarangani area.
ACR-affiliated power facilities are expected to have a total generating
capacity of 588 MW by the end of 2021, which would meet more than 25 percent
of Mindanao's projected peak power demand for that year.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.manilatimes.net/alsons-plans-energy-investment-indonesia/329807/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
ALCANTARA-LED Alsons Consolidated Resources, Inc. (ACR) is eyeing Indonesia
for the expansion of its energy portfolio as part of a bid to grow into a
regional energy player and amid the immense potential offered by the Asean
economic integration.
"We are looking at the Celebes, Sulawesi area because of its proximity to
Mindanao and because of the literature that we have read on the plans of
Indonesia to encourage infrastructure and economic development in the
eastern part of Indonesia," ACR chairman and president Tomas Alcantara told
reporters on the sidelines of the company's annual stockholders meeting held
recently.
ACR plans to invest in power in Indonesia, particularly in fossil-fuel based
power which is indigenous to that area.
Alcantara said the Alsons group is talking to its traditional partners.
"Toyota is already there and some Singaporeans," he said, but did not
divulge the names of other potential partners due to non-disclosure
agreements.
Toyota Tsusho Corporation (TTC), the trading company of the Toyota Group, is
ACR's partner in the 210-megawatt coal-fired baseload power plant of
Sarangani Energy Corporation (SEC) in Maasim, Sarangani Province.
The wisdom of looking at Indonesia as a potential market for investment is
because of its proximity to Mindanao's southern cities of Davao and General
Santos, Alcantara explained.
"North Sulawesi is 45 minutes away from Davao by plane.that is how close
Indonesia is. It is like our natural market," he said.
Meanwhile, the Alsons group said business in Mindanao has not been adversely
affected by President Rodrigo Duterte's declaration of Martial Law.
"The declaration of Martial Law over the island of Mindanao has not in any
way disrupted or affected the normal course of Alsons Power's operations,"
Alcantara said.
"We respect and fully support the decision of President Rodrigo Duterte to
institute all legal measures allowed within the framework of the
Constitution in order to ensure the safety and security of the island," he
said.
Alcantara is hopeful that the security situation in Marawi will normalize at
the soonest time possible.
"We are confident that the government is in firm control of the situation
and we remain steadfast in our commitment to the development of the island
of Mindanao and the rest of the Philippines," he added.
He also said all of their projects under development are on track to
completion, including
Section 2 of the 210-MW SEC, projected to commence commercial operations in
the first half of 2019.
Upon its completion, it will provide baseload power to South Cotabato, Davao
del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City, and
other key areas of Mindanao.
The first 105-MW section of the SEC plant began operating in April of 2016.
At a cost of nearly $600 Million, the SEC power plant is the single largest
investment in Sarangani Province and the entire Region 12.
Within 2017, ACR expects to begin construction of the 15-MW Siguil River
run-of-river hydroelectric plant in Maasim, Sarangani; and the 105-MW San
Ramon Power, Inc. (SRPI) baseload coal-fired power plant in Talisayan,
Zamboanga City.
ACR likewise announced that it would soon undertake a solar power project in
the General Santos-Sarangani area.
ACR-affiliated power facilities are expected to have a total generating
capacity of 588 MW by the end of 2021, which would meet more than 25 percent
of Mindanao's projected peak power demand for that year.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.manilatimes.net/alsons-plans-energy-investment-indonesia/329807/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam prepares for opening of petroleum market
Vietnam prepares for opening of petroleum market
Vietnamese petroleum companies have enough time to build facilities and
develop networks to prepare for competition with foreign distributors once
Vietnam opens the petroleum market, experts say.
After joining WTO, Vietnam did not intend to open its market to foreign
petroleum distributors. However, the government of Vietnam made specific
commitments in some cases to open the market.
Foreigners have been able to legally join the Vietnamese petroleum
distribution market since the equitization of Vietnam's leading petroleum
corporation.
The Vietnam Petroleum Group sold 103.5 million shares, or 8 percent, to a
foreign strategic partner - JX Nippon Oil & Energy from Japan. The state's
ownership ratio in the group has dropped to 75.87 percent.
With the Nghi Son Oil Refinery project in Thanh Hoa province developed by
Idemitsu 8 and Vietnam's national oil & gas group (PetroVietnam), consumers
hope there will be a foreign distributor in the Vietnamese market which will
help make the market more competitive.
Idemitsu 8 will have the right to join the domestic petroleum distribution
market once the Nghi Son Oil Refinery becomes operational in 2017 with the
capacity of 8.4 million tons of crude oil a year in the first phase.
This was an unprecedented commitment made by the government to the investor.
Phan The Rue, chair of VINPA (the Vietnam Petroleum Association), expressed
his concern about the 'foreign wave' in the petroleum market, saying that
the process of cutting the import tariff on petroleum products to zero
percent will only finish in 2024, but foreign investors have threaded their
way into Vietnam.
The same thing happened with the retail market. Though the committed
deadline for opening the retail market did not come, foreign investors can
still enter the domestic market by cooperating with Vietnamese companies.
"The government needs to build a strategy on developing the petroleum market
in the long term and make a decision on whether to open the petroleum market
sooner than committed," Rue said.
"In order to protect domestic production, it is necessary to install
barriers which are not prohibited by WTO to protect the market and domestic
enterprises," he said.
While petroleum companies expressed their concern about the market opening,
experts say it is the right time to open the market.
Pham Tat Thang, a senior researcher at the Trade Institute, said that the
business fields protected by the government would lag behind, while
production would harm the economy and consumers.
A representative of a large petroleum corporation in the south admitted that
once Vietnam became a WTO member and accepts to sell a stake in petroleum
companies to foreigners, it will have to open the market, sooner or later.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/179062/vietnam-prepares-for-openin
g-of-petroleum-market.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnamese petroleum companies have enough time to build facilities and
develop networks to prepare for competition with foreign distributors once
Vietnam opens the petroleum market, experts say.
After joining WTO, Vietnam did not intend to open its market to foreign
petroleum distributors. However, the government of Vietnam made specific
commitments in some cases to open the market.
Foreigners have been able to legally join the Vietnamese petroleum
distribution market since the equitization of Vietnam's leading petroleum
corporation.
The Vietnam Petroleum Group sold 103.5 million shares, or 8 percent, to a
foreign strategic partner - JX Nippon Oil & Energy from Japan. The state's
ownership ratio in the group has dropped to 75.87 percent.
With the Nghi Son Oil Refinery project in Thanh Hoa province developed by
Idemitsu 8 and Vietnam's national oil & gas group (PetroVietnam), consumers
hope there will be a foreign distributor in the Vietnamese market which will
help make the market more competitive.
Idemitsu 8 will have the right to join the domestic petroleum distribution
market once the Nghi Son Oil Refinery becomes operational in 2017 with the
capacity of 8.4 million tons of crude oil a year in the first phase.
This was an unprecedented commitment made by the government to the investor.
Phan The Rue, chair of VINPA (the Vietnam Petroleum Association), expressed
his concern about the 'foreign wave' in the petroleum market, saying that
the process of cutting the import tariff on petroleum products to zero
percent will only finish in 2024, but foreign investors have threaded their
way into Vietnam.
The same thing happened with the retail market. Though the committed
deadline for opening the retail market did not come, foreign investors can
still enter the domestic market by cooperating with Vietnamese companies.
"The government needs to build a strategy on developing the petroleum market
in the long term and make a decision on whether to open the petroleum market
sooner than committed," Rue said.
"In order to protect domestic production, it is necessary to install
barriers which are not prohibited by WTO to protect the market and domestic
enterprises," he said.
While petroleum companies expressed their concern about the market opening,
experts say it is the right time to open the market.
Pham Tat Thang, a senior researcher at the Trade Institute, said that the
business fields protected by the government would lag behind, while
production would harm the economy and consumers.
A representative of a large petroleum corporation in the south admitted that
once Vietnam became a WTO member and accepts to sell a stake in petroleum
companies to foreigners, it will have to open the market, sooner or later.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/179062/vietnam-prepares-for-openin
g-of-petroleum-market.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: In pursuit of renewable energy
Thailand: In pursuit of renewable energy
Thailand, a net importer of fossil energy, is considering new models to
promote renewable energy. In particular, it is looking at successful
projects in Europe, where consumers are willing to pay higher rates to
support renewable power.
There are many issues that require addressing if the country wants to
support renewable power. Among them is the lack of interest among renewable
power producers because of the low power purchase rates, which are pushing
them to develop renewable power projects overseas instead.
According to Thailand's power development plan for 2015-36, energy
policymakers have set the proportion of renewable power to 20% of the total
power-generating system, or 19,634 megawatts, by 2036. The figure is
relatively high compared with the current 7,490MW.
This implies there is a substantial amount of renewable power that needs to
be developed.
Energy Minister Anantaporn Kanjanarat and senior officials observed a
renewable power project in Denmark's Samso Island, where around 50% of the
power used comes from renewable sources, mostly wind.
According to Samso Energy Academy, the island is on course to be free of
fossil fuels by 2030. More than 50% of energy used for transport on the
island is still from fossil fuels, while power for residential use is mostly
sourced by wind turbines.
Mr Anantaporn said Denmark is one of the world's best countries at managing
energy supply and consumption, with plentiful oil and gas resources. Denmark
is an energy exporting country, yet still has a clear policy to rely on
renewable energy and continue to support the use of renewable power despite
higher costs.
The higher costs come from certain levies imposed by the Danish government
on the renewable power-generating sector, which are accepted by the people.
"The Danes are willing to pay higher prices for renewable energy without
asking for government subsidies," said Mr Anantaporn.
In Samso Island, there are three biomass power plants that use agricultural
waste from rapeseed to generate power for 300 families and two small hotels.
Other major renewable power sources are solar and wind, generating power at
an average price of around 14 baht per unit.
Fossil-generated power prices in Thailand are around four baht per unit,
putting pressure on the government to try to lower renewable power prices to
encourage consumers to switch from fossil.
Thailand tried to introduce a project similar to Samso Island in Koh
Phaluai, located around 18 kilometres from Koh Samui. The project began in
2012 with the introduction of solar farm projects to the island with
cooperation from major private firms. But experiment appears to have
stalled.
Renewable power development in Thailand has weathered a vicious cycle of
boom and bust, with the government providing room for private companies to
step into the sector when oil prices surged and pushed other fossil fuel
prices upwards.
Strong government support for the sector since 2000 has attracted several
players to renewable energy. The attractive power purchasing rate of 8.5
baht -- in line with higher production costs -- lured many companies to the
sector.
Some even diversified from other businesses into renewable energy and listed
on the Stock Exchange of Thailand (SET) to raise more funds. Some players
acquired licences from previous licence holders who failed to get loans.
However, subsequent unclear government policies left the sector in limbo.
And the power purchasing rate, also known as the feed-in tariff (FIT) rate
-- the rate state utilities pay to solar farm developers -- stands at 4.12
baht per kilowatt hour as set last November, down almost 30% from 5.66 in
2013 and against 8.5 baht in 2006.
Increasing investment in the solar farm business has increased production,
leading to lower power-generating costs, which has prompted energy
policymakers to revise down the power purchasing rate from time to time.
Major players are now asking for a higher FIT rate, saying the current one
is too low and deterring investors from launching new projects, even
encouraging some to invest abroad.
Mr Anantaporn, the energy minister, however, poses a different argument over
the issue.
"I don't understand why the [previous] government allowed such lucrative
renewable power generating businesses with high returns to be operated by
private firms. Why is the Electricity Generating Authority of Thailand
(Egat) not allowed to do so?" he asked, indicating that Egat could provide
power at a lower price due to the economies of scale the state enterprise
would be able to generate.
Legal barriers also weigh on Thailand's renewable power development, as many
laws relevant to the renewable power sector seem to be contradictory.
Energy Absolute Plc, a SET-listed renewable power developer and operator,
last year experienced difficulties when its licence for a 260MW wind farm in
Chaiyaphum was suspended as the company's project is located on Sor Por Kor
land, designated for farming purposes only.
The Agricultural Land Reform Office finally settled the conflict, allowing
all developers to continue the projects on Sor Por Kor lands.
However, the issue has raised concerns among wind farm developers over
inconsistent government policy. It has also shaken investor confidence in
the renewable energy business in Thailand, and leads to the broader question
of whether the government will be able to promote clean energy any time
soon.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1258302/in-pursuit-of-renewable-ene
rgy
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand, a net importer of fossil energy, is considering new models to
promote renewable energy. In particular, it is looking at successful
projects in Europe, where consumers are willing to pay higher rates to
support renewable power.
There are many issues that require addressing if the country wants to
support renewable power. Among them is the lack of interest among renewable
power producers because of the low power purchase rates, which are pushing
them to develop renewable power projects overseas instead.
According to Thailand's power development plan for 2015-36, energy
policymakers have set the proportion of renewable power to 20% of the total
power-generating system, or 19,634 megawatts, by 2036. The figure is
relatively high compared with the current 7,490MW.
This implies there is a substantial amount of renewable power that needs to
be developed.
Energy Minister Anantaporn Kanjanarat and senior officials observed a
renewable power project in Denmark's Samso Island, where around 50% of the
power used comes from renewable sources, mostly wind.
According to Samso Energy Academy, the island is on course to be free of
fossil fuels by 2030. More than 50% of energy used for transport on the
island is still from fossil fuels, while power for residential use is mostly
sourced by wind turbines.
Mr Anantaporn said Denmark is one of the world's best countries at managing
energy supply and consumption, with plentiful oil and gas resources. Denmark
is an energy exporting country, yet still has a clear policy to rely on
renewable energy and continue to support the use of renewable power despite
higher costs.
The higher costs come from certain levies imposed by the Danish government
on the renewable power-generating sector, which are accepted by the people.
"The Danes are willing to pay higher prices for renewable energy without
asking for government subsidies," said Mr Anantaporn.
In Samso Island, there are three biomass power plants that use agricultural
waste from rapeseed to generate power for 300 families and two small hotels.
Other major renewable power sources are solar and wind, generating power at
an average price of around 14 baht per unit.
Fossil-generated power prices in Thailand are around four baht per unit,
putting pressure on the government to try to lower renewable power prices to
encourage consumers to switch from fossil.
Thailand tried to introduce a project similar to Samso Island in Koh
Phaluai, located around 18 kilometres from Koh Samui. The project began in
2012 with the introduction of solar farm projects to the island with
cooperation from major private firms. But experiment appears to have
stalled.
Renewable power development in Thailand has weathered a vicious cycle of
boom and bust, with the government providing room for private companies to
step into the sector when oil prices surged and pushed other fossil fuel
prices upwards.
Strong government support for the sector since 2000 has attracted several
players to renewable energy. The attractive power purchasing rate of 8.5
baht -- in line with higher production costs -- lured many companies to the
sector.
Some even diversified from other businesses into renewable energy and listed
on the Stock Exchange of Thailand (SET) to raise more funds. Some players
acquired licences from previous licence holders who failed to get loans.
However, subsequent unclear government policies left the sector in limbo.
And the power purchasing rate, also known as the feed-in tariff (FIT) rate
-- the rate state utilities pay to solar farm developers -- stands at 4.12
baht per kilowatt hour as set last November, down almost 30% from 5.66 in
2013 and against 8.5 baht in 2006.
Increasing investment in the solar farm business has increased production,
leading to lower power-generating costs, which has prompted energy
policymakers to revise down the power purchasing rate from time to time.
Major players are now asking for a higher FIT rate, saying the current one
is too low and deterring investors from launching new projects, even
encouraging some to invest abroad.
Mr Anantaporn, the energy minister, however, poses a different argument over
the issue.
"I don't understand why the [previous] government allowed such lucrative
renewable power generating businesses with high returns to be operated by
private firms. Why is the Electricity Generating Authority of Thailand
(Egat) not allowed to do so?" he asked, indicating that Egat could provide
power at a lower price due to the economies of scale the state enterprise
would be able to generate.
Legal barriers also weigh on Thailand's renewable power development, as many
laws relevant to the renewable power sector seem to be contradictory.
Energy Absolute Plc, a SET-listed renewable power developer and operator,
last year experienced difficulties when its licence for a 260MW wind farm in
Chaiyaphum was suspended as the company's project is located on Sor Por Kor
land, designated for farming purposes only.
The Agricultural Land Reform Office finally settled the conflict, allowing
all developers to continue the projects on Sor Por Kor lands.
However, the issue has raised concerns among wind farm developers over
inconsistent government policy. It has also shaken investor confidence in
the renewable energy business in Thailand, and leads to the broader question
of whether the government will be able to promote clean energy any time
soon.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1258302/in-pursuit-of-renewable-ene
rgy
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam to license three more coal-fired power plants in June
Vietnam to license three more coal-fired power plants in June
The Vietnamese Government will grant investment licenses to three
foreign-invested coal-fired power plants costing a combined $7.5 billion
early next month, foreign media cited Minister of Planning and Investment
Nguyen Chi Dung as saying.
Japanese, South Korean, and Saudi Arabian investors are expected to secure
licenses for their projects ahead of Prime Minister Nguyen Xuan Phuc's visit
to Japan next month, Minister Dung said.
According to the Ministry of Planning and Investment, South Korea's Taekwang
Power Holdings Co. and Saudi Arabia's ACWA Power will both invest $2.07
billion in a 1,200 MW thermal power plant scheduled to begin operations in
2021.
Meanwhile, Japan's Marubeni Corp. and the Korea Electric Power Corp. will
invest $2.79 billion in a 1,200-MW plant, with operations expected to also
begin in 2021.
Japan's Sumitomo Corp. will invest some $2.64 billion in a 1,320 MW plant to
kick off in 2022, the ministry said.
South Korea's Posco Energy Company has secured approval from the Vietnamese
Government to build a $2.5 billion coal-fired thermal power plant in the
country, with construction expected to begin in 2022 and be completed by
2026.
In a recent message to the power industry, Deputy Prime Minister Trinh Dinh
Dung said thermal power will be the mainstay of Vietnam's electricity supply
over the next two decades and possibly longer.
His statement came as confirmation of Vietnam's continued reliance on
coal-fired power to keep up with demand, which will pose a number of
challenges in mitigating the power sector's environmental impact while
increasing the country's dependence on coal imports.
The country's energy demand is expected to grow 13 per cent annually over
the next four years.
Energy sources such as hydropower have reached their maximum capacity while
the renewable energy sector remains in its infancy and nuclear power's steep
price tag is too high for a country in which public debt is approaching 65
per cent.
According to the revised National Power Development plan, coal-fired power
will account for 42.7 per cent of total energy sources by 2020, higher than
the current 33.4 per cent. Historically, Vietnam has been self-sufficient in
coal, but this has changed.
More than $400 million was spent during the first quarter of this year on
importing coal, based on recently published figures from the Vietnam
Industry and Trade Information Center (VITIC).
Vietnam will have as many as 64 coal-fired power plants with a combined
capacity of 56,325 MW by 2030.
Twenty-six plants, with a total capacity of 13,810 MW, are operational and
15 are under construction.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/179194/vietnam-to-license-three-mo
re-coal-fired-power-plants-in-june.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Vietnamese Government will grant investment licenses to three
foreign-invested coal-fired power plants costing a combined $7.5 billion
early next month, foreign media cited Minister of Planning and Investment
Nguyen Chi Dung as saying.
Japanese, South Korean, and Saudi Arabian investors are expected to secure
licenses for their projects ahead of Prime Minister Nguyen Xuan Phuc's visit
to Japan next month, Minister Dung said.
According to the Ministry of Planning and Investment, South Korea's Taekwang
Power Holdings Co. and Saudi Arabia's ACWA Power will both invest $2.07
billion in a 1,200 MW thermal power plant scheduled to begin operations in
2021.
Meanwhile, Japan's Marubeni Corp. and the Korea Electric Power Corp. will
invest $2.79 billion in a 1,200-MW plant, with operations expected to also
begin in 2021.
Japan's Sumitomo Corp. will invest some $2.64 billion in a 1,320 MW plant to
kick off in 2022, the ministry said.
South Korea's Posco Energy Company has secured approval from the Vietnamese
Government to build a $2.5 billion coal-fired thermal power plant in the
country, with construction expected to begin in 2022 and be completed by
2026.
In a recent message to the power industry, Deputy Prime Minister Trinh Dinh
Dung said thermal power will be the mainstay of Vietnam's electricity supply
over the next two decades and possibly longer.
His statement came as confirmation of Vietnam's continued reliance on
coal-fired power to keep up with demand, which will pose a number of
challenges in mitigating the power sector's environmental impact while
increasing the country's dependence on coal imports.
The country's energy demand is expected to grow 13 per cent annually over
the next four years.
Energy sources such as hydropower have reached their maximum capacity while
the renewable energy sector remains in its infancy and nuclear power's steep
price tag is too high for a country in which public debt is approaching 65
per cent.
According to the revised National Power Development plan, coal-fired power
will account for 42.7 per cent of total energy sources by 2020, higher than
the current 33.4 per cent. Historically, Vietnam has been self-sufficient in
coal, but this has changed.
More than $400 million was spent during the first quarter of this year on
importing coal, based on recently published figures from the Vietnam
Industry and Trade Information Center (VITIC).
Vietnam will have as many as 64 coal-fired power plants with a combined
capacity of 56,325 MW by 2030.
Twenty-six plants, with a total capacity of 13,810 MW, are operational and
15 are under construction.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/179194/vietnam-to-license-three-mo
re-coal-fired-power-plants-in-june.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Saturday, May 27, 2017
Indonesia: PLN Ready to Electrify 365 Villages in Papua This Year
Indonesia: PLN Ready to Electrify 365 Villages in Papua This Year
State-owned Electricity Firm PLN is ready to provide electricity to 365
villages and eight regencies in Papua and West Papua this year.
Maluku and Papua PLN Regional Business Director Haryanto WS in Jakarta on
Friday, May 26, said that up to this point, from the target set for 2017,
the company has supplied electricity to one regency and four villages.
"With enormous challenges namely geographical condition, distance and
limited infrastructure, we are excited and proud to be able to provide
access to electricity to Papua," he explained.
The target set for 2017 is part of PLN's responsibilities to supply
electricity to around 2.500 villages and nine regencies in Papua and West
Papua from 2016 to 2019. In 2016, 70 villages in West Papua and 22 villages
in Papua were supplied with electricity.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/05/27/056879181/PLN-Ready-to-Electrify-36
5-Villages-in-Papua-This-Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
State-owned Electricity Firm PLN is ready to provide electricity to 365
villages and eight regencies in Papua and West Papua this year.
Maluku and Papua PLN Regional Business Director Haryanto WS in Jakarta on
Friday, May 26, said that up to this point, from the target set for 2017,
the company has supplied electricity to one regency and four villages.
"With enormous challenges namely geographical condition, distance and
limited infrastructure, we are excited and proud to be able to provide
access to electricity to Papua," he explained.
The target set for 2017 is part of PLN's responsibilities to supply
electricity to around 2.500 villages and nine regencies in Papua and West
Papua from 2016 to 2019. In 2016, 70 villages in West Papua and 22 villages
in Papua were supplied with electricity.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/05/27/056879181/PLN-Ready-to-Electrify-36
5-Villages-in-Papua-This-Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: Napocor seeks P931.6-M recovery in fuel supply, forex rate hike
Philippines: Napocor seeks P931.6-M recovery in fuel supply, forex rate hike
THE NATIONAL POWER CORP. (NAPOCOR) HAS FILED SEPARATE PETITIONS WITH THE
ENERGY REGULATORY COMMISSION (ERC) TO RECOVER NEARLY P1 BILLION OF DEFERRED
FUEL AND FOREIGN EXCHANGE POWER COSTS DELIVERED IN OFF-GRID AREAS.
The application is under the 16th generation rate adjustment mechanism
(GRAM) and 14th, 15th and 16rh incremental currency exchange rate adjustment
(ICERA).
For GRAM, Napocor involves P931.6 million recovery of deferred fuel costs
from consumers in Napocor-Small Power Utilities Group (SPUG) areas dating
July to December 2015.
In its petition, the state-run company suggested to charge an additional
P0.6202 per kilowatt-hour (kWh) for off-grid consumers in Luzon, P0.5068-kWh
in Visayas, and P0.6428-kWh in Mindanao over two years.
Meanwhile, the ICERA will take into account foreign exchange rate
fluctuations, on top of the P24.8 million costs incurred from June 26, 2014
to December 25, 2015.
Should this push through, customers in missionary areas will be charged an
additional P0.0472-kWh in their monthly bills.
Napocor's SPUG is under the Electric Power Industry Reform Act (EPIRA) of
2001, or Republic Act No. 9136, which mandates the government-owned
enterprise to provide electricity to areas not connected to the three main
transmission grids in the country.
Off-the-grid communities include Palawan, Mindoro and Mindanao, where
renewable energy sources are ideal for investment entries.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/05/26/napocor-seeks-p931-6-m-recovery-fuel-
supply-forex-rate-hike/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
THE NATIONAL POWER CORP. (NAPOCOR) HAS FILED SEPARATE PETITIONS WITH THE
ENERGY REGULATORY COMMISSION (ERC) TO RECOVER NEARLY P1 BILLION OF DEFERRED
FUEL AND FOREIGN EXCHANGE POWER COSTS DELIVERED IN OFF-GRID AREAS.
The application is under the 16th generation rate adjustment mechanism
(GRAM) and 14th, 15th and 16rh incremental currency exchange rate adjustment
(ICERA).
For GRAM, Napocor involves P931.6 million recovery of deferred fuel costs
from consumers in Napocor-Small Power Utilities Group (SPUG) areas dating
July to December 2015.
In its petition, the state-run company suggested to charge an additional
P0.6202 per kilowatt-hour (kWh) for off-grid consumers in Luzon, P0.5068-kWh
in Visayas, and P0.6428-kWh in Mindanao over two years.
Meanwhile, the ICERA will take into account foreign exchange rate
fluctuations, on top of the P24.8 million costs incurred from June 26, 2014
to December 25, 2015.
Should this push through, customers in missionary areas will be charged an
additional P0.0472-kWh in their monthly bills.
Napocor's SPUG is under the Electric Power Industry Reform Act (EPIRA) of
2001, or Republic Act No. 9136, which mandates the government-owned
enterprise to provide electricity to areas not connected to the three main
transmission grids in the country.
Off-the-grid communities include Palawan, Mindoro and Mindanao, where
renewable energy sources are ideal for investment entries.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/05/26/napocor-seeks-p931-6-m-recovery-fuel-
supply-forex-rate-hike/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
New hydro plans for existing infrastructure in the Philippines
New hydro plans for existing infrastructure in the Philippines
New hydropower projects could be built on both existing and future
irrigation schemes in the Philippines, under plans unveiled by the National
Irrigation Administration (NIA).
Over 360 potential irrigation sites have been identified as being suitable
for hydropower in a study by the NIA. The plans would help NIA provide more
energy from renewable sources for remote regions, while helping to boost
income.
The NIA has recently signed a memorandum of agreement (MOA) with Nascent
Technologies Corp, for development of the 40MW Barit Irrigation Discharge
Hydroelectric Power plant, and it is also involved in the 1MW Rizal
Hydropower Project near the main canal of Pampanga River Irrigation System
(PRIS) in Nueva Ecija.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.waterpowermagazine.com/news/newsnew-hydro-plans-for-existing-infr
astructure-in-the-philippines-5821640
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
New hydropower projects could be built on both existing and future
irrigation schemes in the Philippines, under plans unveiled by the National
Irrigation Administration (NIA).
Over 360 potential irrigation sites have been identified as being suitable
for hydropower in a study by the NIA. The plans would help NIA provide more
energy from renewable sources for remote regions, while helping to boost
income.
The NIA has recently signed a memorandum of agreement (MOA) with Nascent
Technologies Corp, for development of the 40MW Barit Irrigation Discharge
Hydroelectric Power plant, and it is also involved in the 1MW Rizal
Hydropower Project near the main canal of Pampanga River Irrigation System
(PRIS) in Nueva Ecija.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.waterpowermagazine.com/news/newsnew-hydro-plans-for-existing-infr
astructure-in-the-philippines-5821640
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Friday, May 26, 2017
Indonesia's revenue needs override coal curbs as oil take drops
Indonesia's revenue needs override coal curbs as oil take drops
Indonesia will miss coal production targets as the government needs to lean
on revenue from the fuel to make up shortfalls from its take from oil and
gas output, ensuring the country keeps its top coal exporter status,
officials said.
Southeast Asia's largest economy will need to boost coal shipments as
revenues from the sector are critical for the government. This will
undermine planned coal production curbs seen as crucial to Indonesia's
policy of using the fuel as the backbone of its electric power development
plans.
Indonesia is targeting a 20 percent increase in non-tax revenues from the
mining sector, which includes coal, in 2017 to 32.48 trillion rupiah ($2.44
billion), up from 27.15 trillion rupiah in 2016, to replace declining oil
returns, according to Agung Pribadi, director of coal business at the mining
ministry.
This target will make it very difficult for the mining ministry to limit
output, he said.
"Oil (revenues) have declined, (so) the government needs additional revenues
and they also hope for an increase from coal," Pribadi said on the sidelines
of a conference last week.
Non-tax revenues from oil and gas roughly halved in 2016 to 44 trillion
rupiah ($3.31 billion) from 78.2 trillion rupiah in 2015. That same year,
mining revenues were 29.3 trillion rupiah.
The coal sector contributes about 80 percent of the mining non-tax revenues.
Growth has slowed in resource-rich Indonesia as exports, investment and
citizen's purchasing power have all declined following a plunge in commodity
prices.
Indonesia's coal production is expected to climb 5 percent in 2017 and 2018
from an estimated 440 million tonnes in 2016, as miners ramp up output due
to improved prices.
Those gains are more than the targets of 413 million tonnes for 2017 and 406
million tonnes for 2018 set by the National Development Planning Agency. The
agency has set a production cap of 400 million tonnes from 2019 onward in an
effort to secure domestic supply.
Indonesia's coal consumption is expected to increase to 101 million tonnes
this year from 90.6 million tonnes in 2016, and the government is concerned
that Southeast Asia's largest economy could exhaust reserves unless output
controls are enforced.
Indonesia's ambitious 35 gigawatt power development program, of which around
40 percent is now under construction, is expected to roughly double the
country's demand for coal used for power by 2024 to 151 million tonnes from
73.2 million tonnes in 2016, according to state power utility Perusahaan
Listrik Negara (PLN).
"Coal . will be part of the backbone of (Indonesia's) energy sovereignty,"
said Satry Nugraha, a staff expert to the energy and natural resources
minister, at the conference. "On the other hand this country still needs
non-tax revenue from the coal industry."
Among other issues complicating efforts to curb coal output, enforcing
production and export controls on miners holding permits from provincial
governments is proving difficult, Pribadi said.
"These businessmen have exploration permits, and at the same time have
rights to produce," said Pribadi. "Once I've completed exploration and I
want to increase production no one can stop me, right?"
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.hellenicshippingnews.com/indonesias-revenue-needs-override-coal-c
urbs-as-oil-take-drops/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia will miss coal production targets as the government needs to lean
on revenue from the fuel to make up shortfalls from its take from oil and
gas output, ensuring the country keeps its top coal exporter status,
officials said.
Southeast Asia's largest economy will need to boost coal shipments as
revenues from the sector are critical for the government. This will
undermine planned coal production curbs seen as crucial to Indonesia's
policy of using the fuel as the backbone of its electric power development
plans.
Indonesia is targeting a 20 percent increase in non-tax revenues from the
mining sector, which includes coal, in 2017 to 32.48 trillion rupiah ($2.44
billion), up from 27.15 trillion rupiah in 2016, to replace declining oil
returns, according to Agung Pribadi, director of coal business at the mining
ministry.
This target will make it very difficult for the mining ministry to limit
output, he said.
"Oil (revenues) have declined, (so) the government needs additional revenues
and they also hope for an increase from coal," Pribadi said on the sidelines
of a conference last week.
Non-tax revenues from oil and gas roughly halved in 2016 to 44 trillion
rupiah ($3.31 billion) from 78.2 trillion rupiah in 2015. That same year,
mining revenues were 29.3 trillion rupiah.
The coal sector contributes about 80 percent of the mining non-tax revenues.
Growth has slowed in resource-rich Indonesia as exports, investment and
citizen's purchasing power have all declined following a plunge in commodity
prices.
Indonesia's coal production is expected to climb 5 percent in 2017 and 2018
from an estimated 440 million tonnes in 2016, as miners ramp up output due
to improved prices.
Those gains are more than the targets of 413 million tonnes for 2017 and 406
million tonnes for 2018 set by the National Development Planning Agency. The
agency has set a production cap of 400 million tonnes from 2019 onward in an
effort to secure domestic supply.
Indonesia's coal consumption is expected to increase to 101 million tonnes
this year from 90.6 million tonnes in 2016, and the government is concerned
that Southeast Asia's largest economy could exhaust reserves unless output
controls are enforced.
Indonesia's ambitious 35 gigawatt power development program, of which around
40 percent is now under construction, is expected to roughly double the
country's demand for coal used for power by 2024 to 151 million tonnes from
73.2 million tonnes in 2016, according to state power utility Perusahaan
Listrik Negara (PLN).
"Coal . will be part of the backbone of (Indonesia's) energy sovereignty,"
said Satry Nugraha, a staff expert to the energy and natural resources
minister, at the conference. "On the other hand this country still needs
non-tax revenue from the coal industry."
Among other issues complicating efforts to curb coal output, enforcing
production and export controls on miners holding permits from provincial
governments is proving difficult, Pribadi said.
"These businessmen have exploration permits, and at the same time have
rights to produce," said Pribadi. "Once I've completed exploration and I
want to increase production no one can stop me, right?"
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.hellenicshippingnews.com/indonesias-revenue-needs-override-coal-c
urbs-as-oil-take-drops/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: Electricity services in Marawi almost fully restored
Philippines: Electricity services in Marawi almost fully restored
THE electricity services in troubled city of Marawi were almost fully
restored amid the atrocities of the Islamic State-inspired Maute Group, the
Department of Energy (DOE) said Thursday.
Energy Secretary Alfonso Cusi said the Inter-Agency Task Force on Securing
Energy Facilities (IATFSEF) composed of the Department of Energy, Armed
Forces of the Philippines (AFP), Philippine National Police (PNP) and the
other industry players moved to secure the Lanao del Sur Electric
Cooperative, Inc. (Lasureco) compound.
Through the IATFSEF, the system operator National Grid Corporation of the
Philippines (NGCP) reported that the Mindanao grid is now under normal
operation, he said.
NGCP initially reported a lower electricity demand in Lanao del Sur reaching
only 5 megawatts (MW) on Wednesday, which increased to 11 MW Thursday, lower
than the usual demand of 17 MW.
The National Electrification Administration (NEA) and Lasureco reported
Thursday that 95 percent of electricity services in Marawi City has been
restored, Cusi said.
When the Maute Group started occupying Marawi on Tuesday, blackout hit the
city. Citing the NEA's report, Cusi said the remaining non-operational
assets were scheduled to be restored Thursday also.
NEA was also monitoring and awaiting ground data for re-energization of
affected towns in the 2nd District of Lanao del Sur, including Wato, Tugaya,
Bacolod Kalawi, Madamba, Madalum, Ganasi, Pualas, and Pagayawan, he said.
"We are pooling our resources and seeking assistance from the AFP and the
PNP to normalize the security situation, protect our people and secure
energy facilities affected by the fighting," Cusi said.
"We must prioritize the safety of our people, especially those personnel on
duty in the energy facilities, and at the same time protect our energy
assets," he added.
At the same time, Cusi said an M-79 grenade allegedly fired by the Maute
Group landed in the Agus 1 and 2 Hydroelectric Plant Complex located in
Lanao del Sur.
With this, he said Palawan Lomondaya, plant manager of the National Power
Corp., was planning to shut down one of the unit to preserve station service
for Agus 1.
Nevertheless, he said the NPC was continuously mobilizing its technical
personnel to ensure the delivery of sufficient supply and to meet the demand
of the consumers.
President Rodrigo Duterte has declared martial law in the whole of Mindanao
due to the peace and order problem in Marawi City.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.sunstar.com.ph/manila/local-news/2017/05/25/electricity-services-
marawi-almost-fully-restored-doe-543840
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
THE electricity services in troubled city of Marawi were almost fully
restored amid the atrocities of the Islamic State-inspired Maute Group, the
Department of Energy (DOE) said Thursday.
Energy Secretary Alfonso Cusi said the Inter-Agency Task Force on Securing
Energy Facilities (IATFSEF) composed of the Department of Energy, Armed
Forces of the Philippines (AFP), Philippine National Police (PNP) and the
other industry players moved to secure the Lanao del Sur Electric
Cooperative, Inc. (Lasureco) compound.
Through the IATFSEF, the system operator National Grid Corporation of the
Philippines (NGCP) reported that the Mindanao grid is now under normal
operation, he said.
NGCP initially reported a lower electricity demand in Lanao del Sur reaching
only 5 megawatts (MW) on Wednesday, which increased to 11 MW Thursday, lower
than the usual demand of 17 MW.
The National Electrification Administration (NEA) and Lasureco reported
Thursday that 95 percent of electricity services in Marawi City has been
restored, Cusi said.
When the Maute Group started occupying Marawi on Tuesday, blackout hit the
city. Citing the NEA's report, Cusi said the remaining non-operational
assets were scheduled to be restored Thursday also.
NEA was also monitoring and awaiting ground data for re-energization of
affected towns in the 2nd District of Lanao del Sur, including Wato, Tugaya,
Bacolod Kalawi, Madamba, Madalum, Ganasi, Pualas, and Pagayawan, he said.
"We are pooling our resources and seeking assistance from the AFP and the
PNP to normalize the security situation, protect our people and secure
energy facilities affected by the fighting," Cusi said.
"We must prioritize the safety of our people, especially those personnel on
duty in the energy facilities, and at the same time protect our energy
assets," he added.
At the same time, Cusi said an M-79 grenade allegedly fired by the Maute
Group landed in the Agus 1 and 2 Hydroelectric Plant Complex located in
Lanao del Sur.
With this, he said Palawan Lomondaya, plant manager of the National Power
Corp., was planning to shut down one of the unit to preserve station service
for Agus 1.
Nevertheless, he said the NPC was continuously mobilizing its technical
personnel to ensure the delivery of sufficient supply and to meet the demand
of the consumers.
President Rodrigo Duterte has declared martial law in the whole of Mindanao
due to the peace and order problem in Marawi City.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.sunstar.com.ph/manila/local-news/2017/05/25/electricity-services-
marawi-almost-fully-restored-doe-543840
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: Bundit Sapianchai, President and CEO, BCPG, on the pace of expansion in the renewable energy sector
Thailand: Bundit Sapianchai, President and CEO, BCPG, on the pace of
expansion in the renewable energy sector
How do you assess the sustainability of the recent influx of corporate
investment into renewable energy in Thailand?
BUNDIT SAPIANCHAI: It has been the case in Thailand over the past few years
that the renewable energy sector has become open to almost anyone, and is no
longer a sector reserved for existing players in petroleum or even entities
focused solely on renewables.
We have experienced an influx of initial public offerings (IPOs) of
renewable energy companies, as well as the diversification of companies in
sectors ranging from media to real estate and health care into renewables,
as the perception is that there is money to be made in the sector, and
anyone with the capacity to invest in it should do so.
This has both positive and negative consequences. If you follow some of the
IPOs of late, the success rate has not been very high, even for those
listings that have risen above their IPO price on the first day of trading.
The fact is that the sector has many moving parts, from the purchase of land
to building and operating plants and, eventually, expanding in a sustainable
manner. Existing energy players are increasingly investing in renewables -
given fluctuations in the oil price and other external factors - and hold
some core advantages, such as existing infrastructure, technology and a
relationship with the relevant authorities and regulators.
Investment style is also key to ensuring sustainability. While many newer
players aggregate megawatts in small increments, experienced players engage
in larger investments often involving the acquisition of existing companies
and their full asset portfolios, which lends itself better to business
growth over the long term.
In what ways are government policy and incentives shaping the expansion of
Thai renewables players into neighbouring markets?
BUNDIT: It is always important to compare one's domestic market with
opportunities overseas, and if good domestic opportunities exist then that
is always the first investment choice. Looking at solar power in Thailand,
the original adder tariff subsidisation scheme was very attractive and
garnered a high level of investment in the sector.
Eventually, as happens in all economies across the world, technology
improved and the cost of installation and equipment fell, triggering
revisions to tariff rates and lower levels of government subsidy. The spread
between tariff and investment is continually shrinking, and for solar power
in Thailand currently stands at around BT4.12 ($0.12) per KWh.
This has prompted many players to look overseas. Japan has been a
particularly attractive destination, as the return on investment for solar
projects there is roughly equivalent to that achieved from a project in
Thailand having a tariff rate of BT5.66 ($0.16) per KWh. Japan has
experienced issues with safety in terms of nuclear power and is now heavily
promoting green energy, so we expect it to continue to be an attractive
market in the medium term.
Looking closer to home, the ASEAN region is very diverse and holds great
potential for renewable energy. The sector demands resources rather than raw
materials, and the range of resources in ASEAN is vast. For example,
Thailand is well positioned for solar energy, the Philippines has good wind
resources, Indonesia is plentiful in geothermal potential and Laos excels at
hydropower. Thus, the region is ripe for the various economies to play
complementary roles in terms of energy production.
What level of innovation can we expect from Thailand's power production
industry in the medium term?
BUNDIT: Many minor innovations are already being enacted in the sector, such
as solar cooperative programmes and small power producer/very small power
producer hybrid offerings. The next crucial step for the sector will be
entirely changing the existing business model.
I believe strongly in the concepts of distributed energy and peer-to-peer
energy, whereby technologies such as blockchain can be mobilised to
deregulate the sector and reduce the need for large-scale government
spending and capacity, while offering customers and end-users more choice in
purchasing and all other aspects of the distribution process.
It will take a change in mentality and established roles but will create
economic efficiency and innovation if fully embraced.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.oxfordbusinessgroup.com/views/bundit-sapianchai-president-and-ceo
-bcpg
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
expansion in the renewable energy sector
How do you assess the sustainability of the recent influx of corporate
investment into renewable energy in Thailand?
BUNDIT SAPIANCHAI: It has been the case in Thailand over the past few years
that the renewable energy sector has become open to almost anyone, and is no
longer a sector reserved for existing players in petroleum or even entities
focused solely on renewables.
We have experienced an influx of initial public offerings (IPOs) of
renewable energy companies, as well as the diversification of companies in
sectors ranging from media to real estate and health care into renewables,
as the perception is that there is money to be made in the sector, and
anyone with the capacity to invest in it should do so.
This has both positive and negative consequences. If you follow some of the
IPOs of late, the success rate has not been very high, even for those
listings that have risen above their IPO price on the first day of trading.
The fact is that the sector has many moving parts, from the purchase of land
to building and operating plants and, eventually, expanding in a sustainable
manner. Existing energy players are increasingly investing in renewables -
given fluctuations in the oil price and other external factors - and hold
some core advantages, such as existing infrastructure, technology and a
relationship with the relevant authorities and regulators.
Investment style is also key to ensuring sustainability. While many newer
players aggregate megawatts in small increments, experienced players engage
in larger investments often involving the acquisition of existing companies
and their full asset portfolios, which lends itself better to business
growth over the long term.
In what ways are government policy and incentives shaping the expansion of
Thai renewables players into neighbouring markets?
BUNDIT: It is always important to compare one's domestic market with
opportunities overseas, and if good domestic opportunities exist then that
is always the first investment choice. Looking at solar power in Thailand,
the original adder tariff subsidisation scheme was very attractive and
garnered a high level of investment in the sector.
Eventually, as happens in all economies across the world, technology
improved and the cost of installation and equipment fell, triggering
revisions to tariff rates and lower levels of government subsidy. The spread
between tariff and investment is continually shrinking, and for solar power
in Thailand currently stands at around BT4.12 ($0.12) per KWh.
This has prompted many players to look overseas. Japan has been a
particularly attractive destination, as the return on investment for solar
projects there is roughly equivalent to that achieved from a project in
Thailand having a tariff rate of BT5.66 ($0.16) per KWh. Japan has
experienced issues with safety in terms of nuclear power and is now heavily
promoting green energy, so we expect it to continue to be an attractive
market in the medium term.
Looking closer to home, the ASEAN region is very diverse and holds great
potential for renewable energy. The sector demands resources rather than raw
materials, and the range of resources in ASEAN is vast. For example,
Thailand is well positioned for solar energy, the Philippines has good wind
resources, Indonesia is plentiful in geothermal potential and Laos excels at
hydropower. Thus, the region is ripe for the various economies to play
complementary roles in terms of energy production.
What level of innovation can we expect from Thailand's power production
industry in the medium term?
BUNDIT: Many minor innovations are already being enacted in the sector, such
as solar cooperative programmes and small power producer/very small power
producer hybrid offerings. The next crucial step for the sector will be
entirely changing the existing business model.
I believe strongly in the concepts of distributed energy and peer-to-peer
energy, whereby technologies such as blockchain can be mobilised to
deregulate the sector and reduce the need for large-scale government
spending and capacity, while offering customers and end-users more choice in
purchasing and all other aspects of the distribution process.
It will take a change in mentality and established roles but will create
economic efficiency and innovation if fully embraced.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.oxfordbusinessgroup.com/views/bundit-sapianchai-president-and-ceo
-bcpg
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
A tiny island off Singapore may hold keys to energy's future
A tiny island off Singapore may hold keys to energy's future
Engie SA is helping build a small, self-contained power grid on Semakau
Island to demonstrate the usefulness of hydrogen gas in converting
intermittent power from solar panels and wind turbines into stored fuel that
can generate electricity days or even months later, when the need is higher.
Plummeting costs for solar and wind are helping renewable energy steal an
ever-greater slice of the power generation pie from fossil fuels such as oil
and coal.
That makes it more and more vital to figure out how to spread out the brief
but intense bursts of energy harnessed from the sun and wind to the more
diffused needs of consumers. While battery storage has received most of the
attention so far, hydrogen has "massive long-term potential," said Didier
Holleaux, executive vice president at Engie.
"Batteries are fine for intraday, or a few hours," Mr Holleaux said in an
interview in Singapore. "But if you produce energy in summer and need it in
winter, or need it to last during a few cloudy days, then hydrogen would be
the obvious solution." To be a solution, though, hydrogen storage costs
would have to come down dramatically. A hydrogen-based energy storage system
costs about 10 times more than a diesel back-up generator with similar power
output, according to a Toshiba Corp presentation at the World Smart Energy
Week in Tokyo in March.
Hydrogen storage is basically a three-step process: electricity powers a
chemical process know as electrolysis that splits water into hydrogen and
oxygen. The hydrogen is then stored until it's needed, and is then pumped
through fuel cells to generate electricity.
The biggest hurdle to commercial viability is the electrolysis process, Mr
Holleaux said. Manufacturers are trying to make the water-splitting
equipment cheaper and more efficient, but are probably 10 to 15 years away,
Mr Holleaux said.
"Electricity costs are a major component of the total expense for hydrogen
production," said I-Chun Hsiao, an analyst with Bloomberg New Energy
Finance.
"Access to cheap electricity and improvements in electrolyzer efficiencies
are essential to improving the economic attractiveness of hydrogen,
regardless of scale."
The Semakau Island project, which Engie is taking part in along with
Singapore's Nanyang Technological University and France's Schneider Electric
SE, aims to build demonstration micro-grids that integrate wind, solar,
tidal and diesel power along with storage to provide electricity to small
island communities not connected to traditional power plants. The micro-grid
is expected to be operating by October, with hydrogen storage capabilities
added next year, Mr Holleaux said.
Engie sees big opportunities for such micro-grids in Southeast Asia,
especially in the Indonesian archipelago, where nearly 1,000 islands have
populations that don't have access to traditional power plants.
"It's a region that's open to innovation," Mr Holleaux said. "Many countries
are ready to leapfrog directly from no power at all to a completely
decentralized type of power, rather than going through the traditional
centralized, interconnected network."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.businesstimes.com.sg/energy-commodities/a-tiny-island-off-singapo
re-may-hold-keys-to-energys-future
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Engie SA is helping build a small, self-contained power grid on Semakau
Island to demonstrate the usefulness of hydrogen gas in converting
intermittent power from solar panels and wind turbines into stored fuel that
can generate electricity days or even months later, when the need is higher.
Plummeting costs for solar and wind are helping renewable energy steal an
ever-greater slice of the power generation pie from fossil fuels such as oil
and coal.
That makes it more and more vital to figure out how to spread out the brief
but intense bursts of energy harnessed from the sun and wind to the more
diffused needs of consumers. While battery storage has received most of the
attention so far, hydrogen has "massive long-term potential," said Didier
Holleaux, executive vice president at Engie.
"Batteries are fine for intraday, or a few hours," Mr Holleaux said in an
interview in Singapore. "But if you produce energy in summer and need it in
winter, or need it to last during a few cloudy days, then hydrogen would be
the obvious solution." To be a solution, though, hydrogen storage costs
would have to come down dramatically. A hydrogen-based energy storage system
costs about 10 times more than a diesel back-up generator with similar power
output, according to a Toshiba Corp presentation at the World Smart Energy
Week in Tokyo in March.
Hydrogen storage is basically a three-step process: electricity powers a
chemical process know as electrolysis that splits water into hydrogen and
oxygen. The hydrogen is then stored until it's needed, and is then pumped
through fuel cells to generate electricity.
The biggest hurdle to commercial viability is the electrolysis process, Mr
Holleaux said. Manufacturers are trying to make the water-splitting
equipment cheaper and more efficient, but are probably 10 to 15 years away,
Mr Holleaux said.
"Electricity costs are a major component of the total expense for hydrogen
production," said I-Chun Hsiao, an analyst with Bloomberg New Energy
Finance.
"Access to cheap electricity and improvements in electrolyzer efficiencies
are essential to improving the economic attractiveness of hydrogen,
regardless of scale."
The Semakau Island project, which Engie is taking part in along with
Singapore's Nanyang Technological University and France's Schneider Electric
SE, aims to build demonstration micro-grids that integrate wind, solar,
tidal and diesel power along with storage to provide electricity to small
island communities not connected to traditional power plants. The micro-grid
is expected to be operating by October, with hydrogen storage capabilities
added next year, Mr Holleaux said.
Engie sees big opportunities for such micro-grids in Southeast Asia,
especially in the Indonesian archipelago, where nearly 1,000 islands have
populations that don't have access to traditional power plants.
"It's a region that's open to innovation," Mr Holleaux said. "Many countries
are ready to leapfrog directly from no power at all to a completely
decentralized type of power, rather than going through the traditional
centralized, interconnected network."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.businesstimes.com.sg/energy-commodities/a-tiny-island-off-singapo
re-may-hold-keys-to-energys-future
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Malaysia: Cloudy view for energy giant Petronas
Malaysia: Cloudy view for energy giant Petronas
Malaysia's state-run oil and gas firm has avoided a credit rating downgrade
and financial losses through sharp cost cutting that has crimped its future
plans and ambitions
Oil and gas wealth drove Malaysia's go-go modernization during the 1980s and
1990s, with state oil firm Petronas emerging as one of Asia's most
profitable companies. That success was reflected its shiny iconic twin
towers, once the world's tallest, in downtown Kuala Lumpur.
But after more than two years of stubbornly low global oil prices, with
prices falling from a per barrel high of US$145 in 2008 to a low of US$26 in
2016, Petronas is struggling to maintain its prominence as one of the
world's largest exporters of liquefied natural gas (LNG).
Last year, company revenue slumped to US$46 billion, around 17% lower than
in 2015. Petronas maintained profitability through heavy cuts to capital
investments and operating expenditures, including retrenchment of staff.
Managers have announced plans to trim US$11 billion in expenses from
2015-2019.
The company has also said it would review ongoing investment in various
global projects; Petronas has business interests in more than 50 countries
worldwide. The austerity measures so far have helped the state-owned firm
avoid a credit rating downgrade, unlike several other major oil firms.
However, Petronas plans to cut crude oil output by up to 20,000 barrels per
day in 2017, a 3% fall from last year. The cuts come as part of an agreement
reached in December by the Organization of the Petroleum Exporting Countries
(OPEC) and non-OPEC producers, which includes Malaysia.
The agreement aims at curtailing global petroleum output to limit oversupply
and raise prices. Petronas' president and group chief executive officer, Wan
Zulkiflee Wan Ariffin, meanwhile recently said that the firm is trying to
make cost efficiency "part of our DNA."
On other fronts, however, the company is still expanding. It recently
invested almost US$90 million to expand a lubricant-blending plant it
operates in China, while a floating liquefied natural gas (LNG) facility
there - the first of its kind in the world - is set to begin operations in
June.
Petronas also announced this month it aims to broaden its LNG business to
meet rising demand in India, Pakistan and Bangladesh, as well as some parts
of Southeast Asia, where it is currently the region's second largest
supplier of LNG.
Much hinges, however, on a major new joint venture with Saudi Arabia. In
February, when Saudi King Salman bin Abdulaziz began his tour of Asia in
Malaysia, the monarch oversaw the signing of an investment deal worth US$7
billion between the two nations' state-owned oil firms.
Saudi Arabian Oil, more commonly known as Saudi Aramco, is set to assume a
50% share in a new Malaysia-based petroleum refinery development, a
cornerstone project of the multi-billion dollar Pengerang Integrated Complex
(PIC), in the country's southern Johor state.
Started by Petronas in 2011, PIC aims to transform Malaysia into an
international petrochemical industrial hub. There is political noise around
the plan, though. There were widespread reports that senior Petronas
officials were against the Saudi investment, criticism Prime Minister Najib
Razak blamed on "unpatriotic people."
Critics of the scheme had apparently briefed the Saudis that Malaysia was
politically unstable and unable to pay civil servants' salaries and benefits
due to financial difficulties, unsubstantiated rumors that almost scrapped
the deal, according to reports.
"We had to meet them and correct the facts that Malaysia is among the best
countries in the world [for investors]," Najib was quoted saying by local
media. "When they were convinced, they finally agreed to invest with us."
Petronas group executive vice-president Md Arif Mahmood has denied there
were any misgivings among Petronas executives and said that discussions on
the deal with Saudi Aramco began in 2014, insinuating Petronas was not
strong-armed into the oil-importing venture, as some critics claimed.
As part of the deal's terms, Saudi Aramco will provide up to 70% of the
crude oil to be processed at the plant, which is expected to be operational
by 2019 and capable of processing 300,000 barrels of oil per day.
These developments will help but not necessary boost the Malaysian economy
back to fast growth. Due to a global oil glut, Malaysia has seen rising
unemployment, stubbornly high inflation and an overall slowdown in economic
growth.
While foreign direct investment (FDI) was up 64% year on year in 2016, due
largely to burgeoning ties with China, domestic investment fell by 5%. Trade
Minister Mustapa Mohamed told reporters that the decline was largely
attributable to a lack of new investments by Petronas.
As a state-owned firm, Petronas pays a dividend towards the government's
annual budget. Before the oil price crash, revenue from Petronas and the
wider oil industry accounted for as much as a one-third of state revenue,
according to media reports.
But that annual payout has diminished due to low fuel prices. For each US$1
drop in global oil prices, almost US$60 million is slashed from state
revenue, industry experts say.
Petronas has said it will pay the government around 13 billion ringgit
(US$2.9 billion) this year, its lowest annual dividend since 2007. That's
half the 26 billion ringgit (US$5.8 billion) it paid in 2015 and even less
than the 16 billion ringgit it (US$3.2 billion) handed over last year.
Falling oil revenues were a key factor in the government's 2015 introduction
of a goods and services tax (GST), which Najib heralded at the time as a
"savior" of the economy. The tax's critics say it takes money away from
private consumers just as austerity measures bite for the sole purpose of
boosting state coffers.
Falling oil revenues were a key factor in the government's 2015 introduction
of a goods and services tax (GST), which Najib heralded at the time as a
"savior" of the economy.
To be sure, Malaysia's economic woes mirror other oil-rich nations, many of
which have moved to diversify their economies to curtail the so-called
"resource curse." The 11th Malaysia Plan, an economic proposal laid out in
2015, aims to reduce the government's dependency on petroleum-related
revenue from around 33% to 15.5% by 2020.
It will be an uphill battle, analysts say, especially with an upcoming
general election due before August 2018. While tough economic decisions are
seldom taken in election seasons in Malaysia, Najib's coalition is already
campaigning on the notion it is better placed to solve economic problems
than the unproven opposition.
The Saudi investment will thus have come at an opportune time for both
Petronas and Najib. Despite criticism from some quarters, mainly from the
political opposition but also within Petronas, Najib has touted the refinery
project as a potential huge job creator, particularly in Johor, an important
swing state at the next polls.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.atimes.com/article/cloudy-view-energy-giant-petronas/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Malaysia's state-run oil and gas firm has avoided a credit rating downgrade
and financial losses through sharp cost cutting that has crimped its future
plans and ambitions
Oil and gas wealth drove Malaysia's go-go modernization during the 1980s and
1990s, with state oil firm Petronas emerging as one of Asia's most
profitable companies. That success was reflected its shiny iconic twin
towers, once the world's tallest, in downtown Kuala Lumpur.
But after more than two years of stubbornly low global oil prices, with
prices falling from a per barrel high of US$145 in 2008 to a low of US$26 in
2016, Petronas is struggling to maintain its prominence as one of the
world's largest exporters of liquefied natural gas (LNG).
Last year, company revenue slumped to US$46 billion, around 17% lower than
in 2015. Petronas maintained profitability through heavy cuts to capital
investments and operating expenditures, including retrenchment of staff.
Managers have announced plans to trim US$11 billion in expenses from
2015-2019.
The company has also said it would review ongoing investment in various
global projects; Petronas has business interests in more than 50 countries
worldwide. The austerity measures so far have helped the state-owned firm
avoid a credit rating downgrade, unlike several other major oil firms.
However, Petronas plans to cut crude oil output by up to 20,000 barrels per
day in 2017, a 3% fall from last year. The cuts come as part of an agreement
reached in December by the Organization of the Petroleum Exporting Countries
(OPEC) and non-OPEC producers, which includes Malaysia.
The agreement aims at curtailing global petroleum output to limit oversupply
and raise prices. Petronas' president and group chief executive officer, Wan
Zulkiflee Wan Ariffin, meanwhile recently said that the firm is trying to
make cost efficiency "part of our DNA."
On other fronts, however, the company is still expanding. It recently
invested almost US$90 million to expand a lubricant-blending plant it
operates in China, while a floating liquefied natural gas (LNG) facility
there - the first of its kind in the world - is set to begin operations in
June.
Petronas also announced this month it aims to broaden its LNG business to
meet rising demand in India, Pakistan and Bangladesh, as well as some parts
of Southeast Asia, where it is currently the region's second largest
supplier of LNG.
Much hinges, however, on a major new joint venture with Saudi Arabia. In
February, when Saudi King Salman bin Abdulaziz began his tour of Asia in
Malaysia, the monarch oversaw the signing of an investment deal worth US$7
billion between the two nations' state-owned oil firms.
Saudi Arabian Oil, more commonly known as Saudi Aramco, is set to assume a
50% share in a new Malaysia-based petroleum refinery development, a
cornerstone project of the multi-billion dollar Pengerang Integrated Complex
(PIC), in the country's southern Johor state.
Started by Petronas in 2011, PIC aims to transform Malaysia into an
international petrochemical industrial hub. There is political noise around
the plan, though. There were widespread reports that senior Petronas
officials were against the Saudi investment, criticism Prime Minister Najib
Razak blamed on "unpatriotic people."
Critics of the scheme had apparently briefed the Saudis that Malaysia was
politically unstable and unable to pay civil servants' salaries and benefits
due to financial difficulties, unsubstantiated rumors that almost scrapped
the deal, according to reports.
"We had to meet them and correct the facts that Malaysia is among the best
countries in the world [for investors]," Najib was quoted saying by local
media. "When they were convinced, they finally agreed to invest with us."
Petronas group executive vice-president Md Arif Mahmood has denied there
were any misgivings among Petronas executives and said that discussions on
the deal with Saudi Aramco began in 2014, insinuating Petronas was not
strong-armed into the oil-importing venture, as some critics claimed.
As part of the deal's terms, Saudi Aramco will provide up to 70% of the
crude oil to be processed at the plant, which is expected to be operational
by 2019 and capable of processing 300,000 barrels of oil per day.
These developments will help but not necessary boost the Malaysian economy
back to fast growth. Due to a global oil glut, Malaysia has seen rising
unemployment, stubbornly high inflation and an overall slowdown in economic
growth.
While foreign direct investment (FDI) was up 64% year on year in 2016, due
largely to burgeoning ties with China, domestic investment fell by 5%. Trade
Minister Mustapa Mohamed told reporters that the decline was largely
attributable to a lack of new investments by Petronas.
As a state-owned firm, Petronas pays a dividend towards the government's
annual budget. Before the oil price crash, revenue from Petronas and the
wider oil industry accounted for as much as a one-third of state revenue,
according to media reports.
But that annual payout has diminished due to low fuel prices. For each US$1
drop in global oil prices, almost US$60 million is slashed from state
revenue, industry experts say.
Petronas has said it will pay the government around 13 billion ringgit
(US$2.9 billion) this year, its lowest annual dividend since 2007. That's
half the 26 billion ringgit (US$5.8 billion) it paid in 2015 and even less
than the 16 billion ringgit it (US$3.2 billion) handed over last year.
Falling oil revenues were a key factor in the government's 2015 introduction
of a goods and services tax (GST), which Najib heralded at the time as a
"savior" of the economy. The tax's critics say it takes money away from
private consumers just as austerity measures bite for the sole purpose of
boosting state coffers.
Falling oil revenues were a key factor in the government's 2015 introduction
of a goods and services tax (GST), which Najib heralded at the time as a
"savior" of the economy.
To be sure, Malaysia's economic woes mirror other oil-rich nations, many of
which have moved to diversify their economies to curtail the so-called
"resource curse." The 11th Malaysia Plan, an economic proposal laid out in
2015, aims to reduce the government's dependency on petroleum-related
revenue from around 33% to 15.5% by 2020.
It will be an uphill battle, analysts say, especially with an upcoming
general election due before August 2018. While tough economic decisions are
seldom taken in election seasons in Malaysia, Najib's coalition is already
campaigning on the notion it is better placed to solve economic problems
than the unproven opposition.
The Saudi investment will thus have come at an opportune time for both
Petronas and Najib. Despite criticism from some quarters, mainly from the
political opposition but also within Petronas, Najib has touted the refinery
project as a potential huge job creator, particularly in Johor, an important
swing state at the next polls.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.atimes.com/article/cloudy-view-energy-giant-petronas/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Taiwanese investors interested in Vietnam's solar energy projects
Taiwanese investors interested in Vietnam's solar energy projects
The Vietnamese Government's decision on providing incentives for solar
energy projects in Vietnam has attracted foreign investors to the field,
including those from Taiwan.
Under Decision No. 11/2017/QD-TTg dated April 11, 2017, solar power
investors have to pay corporate income tax at just 10 percent for their
first 15 years of operation. They can also receive tax exemptions in the
next four years and pay half tax for the next nine years.
They are also exempt from import tariffs to create fixed assets for the
projects. The State will purchase all electricity produced by the projects
for 2,086 VND (9.35 US cents) per kWh.
Nguyen Thu Trang, a senior sales representative of Taiwanese Big Sun Group,
one of Taiwan's leading businesses specialising in solar energy solutions,
said Big Sun wants to introduce state-of-the-art solar panel trackers in
Vietnam to improve the efficiency of solar power plants in the country.
Big Sun also hopes to work with local steel firms to open tracker factories
to reduce production costs, she said, adding that although tracker import
tax is now 0 percent, transportation costs remain high because of their
weight.
Taiwan's Neo Solar Power Corp (NSP) is also working with Vina Solar
Technology Co., Ltd of Vietnam on a big solar energy project.
Tim Sun, a representative of NSP, said the cooperation is NSP's first step
to increasing its presence in Vietnam and that the company will consider
expanding its affiliation with Vina Solar while seeking other Vietnamese
partners.
LTI ReEnergy, another Taiwanese group specialising in inverter technology,
is also considering entering Vietnam.
LTI ReEnergy General Director Tom Wang said he will visit Vietnam early next
year to explore the market, noting that he wants to introduce inverter
technology, an advanced technology helping reduce energy losses, in the
country.
Alen Wu, a representative of Motech Industries, Taiwan's largest solar cell
manufacturer, said the company is also cooperating with Vina Solar and will
seek more Vietnamese partners to benefit from the country's friendly
business policies.
According to the Foreign Investment Department under the Ministry of
Industry and Trade, Vietnam has 16 foreign direct investment projects in
green energy with total registered capital of 778 million USD, of which
solar energy projects are valued at 137.38 million USD.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/179100/taiwanese-investors-interes
ted-in-vietnam-s-solar-energy-projects.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Vietnamese Government's decision on providing incentives for solar
energy projects in Vietnam has attracted foreign investors to the field,
including those from Taiwan.
Under Decision No. 11/2017/QD-TTg dated April 11, 2017, solar power
investors have to pay corporate income tax at just 10 percent for their
first 15 years of operation. They can also receive tax exemptions in the
next four years and pay half tax for the next nine years.
They are also exempt from import tariffs to create fixed assets for the
projects. The State will purchase all electricity produced by the projects
for 2,086 VND (9.35 US cents) per kWh.
Nguyen Thu Trang, a senior sales representative of Taiwanese Big Sun Group,
one of Taiwan's leading businesses specialising in solar energy solutions,
said Big Sun wants to introduce state-of-the-art solar panel trackers in
Vietnam to improve the efficiency of solar power plants in the country.
Big Sun also hopes to work with local steel firms to open tracker factories
to reduce production costs, she said, adding that although tracker import
tax is now 0 percent, transportation costs remain high because of their
weight.
Taiwan's Neo Solar Power Corp (NSP) is also working with Vina Solar
Technology Co., Ltd of Vietnam on a big solar energy project.
Tim Sun, a representative of NSP, said the cooperation is NSP's first step
to increasing its presence in Vietnam and that the company will consider
expanding its affiliation with Vina Solar while seeking other Vietnamese
partners.
LTI ReEnergy, another Taiwanese group specialising in inverter technology,
is also considering entering Vietnam.
LTI ReEnergy General Director Tom Wang said he will visit Vietnam early next
year to explore the market, noting that he wants to introduce inverter
technology, an advanced technology helping reduce energy losses, in the
country.
Alen Wu, a representative of Motech Industries, Taiwan's largest solar cell
manufacturer, said the company is also cooperating with Vina Solar and will
seek more Vietnamese partners to benefit from the country's friendly
business policies.
According to the Foreign Investment Department under the Ministry of
Industry and Trade, Vietnam has 16 foreign direct investment projects in
green energy with total registered capital of 778 million USD, of which
solar energy projects are valued at 137.38 million USD.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/179100/taiwanese-investors-interes
ted-in-vietnam-s-solar-energy-projects.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia deals power Egco profit
Indonesia deals power Egco profit
SET-listed Electricity Generating Plc (ECGO) posted a 14% rise in net profit
in the first quarter of this year, thanks to the acquisition of geothermal
power plants in Indonesia.
President and chief executive Chanin Chaonirattisai said total revenue in
the first quarter was 7.1 billion baht, up 39% from the same period last
year, when it had total revenue of 5.1 billion.
Net profit rose 14% year-on-year to 2.9 billion baht, he said.
Mr Chanin said Egco's business has been progressing well since its
acquisition of shares in Salak and Darajat geothermal power plants in West
Java early this year.
The plants comprise several geothermal steam and electricity generating
units with aggregate capacity of 402 megawatts from electricity and 235MW
equivalent from steam. The plants have long-term energy sales contracts with
PT PLN, the Indonesian state-owned electricity corporation.
Egco began investing in Indonesia in 2014 by acquiring a 20% indirect
ownership interest in the Star Energy geothermal power plant, which has
total installed capacity of 227MW.
Egco Group affiliates, Star Energy Group Holdings Pte Ltd and AC Energy
Holdings Inc, acquired the shares from Chevron's affiliates. Egco Group's
investment interest in the projects is 20.1%, with the acquisitions
immediately generating revenue.
Egco has six power projects under construction at home and abroad: three
small power plant (SPP) projects in Thailand, the Xayaburi hydropower
project in Laos, and the San Buenaventura and Masinloc Unit 3 coal-fired
power plants in the Philippines.
Mr Chanin said the Klongluang SPP power project in Thailand, with total
equity contracted capacity of 102MW, is due to start commercial operations
next month.
Egco has two other projects in Laos, the Pak Beng and Nam Thuen 1 hydropower
projects, which are yet to break ground. The former is waiting for approval
from the Mekong River Commission, and the latter is pending the
attorney-general's review of the Power Purchase Agreement (PPA).
Egco is also negotiating the tariff to help the expansion of the Star Energy
geothermal power plant in Indonesia, and the electricity price and PPA for
the Quang Tri coal-fired power project in Vietnam.
EGCO shares closed yesterday on the Stock Exchange of Thailand at 211 baht,
up two baht in trade worth 23.3 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1256582/indonesia-deals-power-egco-
profit
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
SET-listed Electricity Generating Plc (ECGO) posted a 14% rise in net profit
in the first quarter of this year, thanks to the acquisition of geothermal
power plants in Indonesia.
President and chief executive Chanin Chaonirattisai said total revenue in
the first quarter was 7.1 billion baht, up 39% from the same period last
year, when it had total revenue of 5.1 billion.
Net profit rose 14% year-on-year to 2.9 billion baht, he said.
Mr Chanin said Egco's business has been progressing well since its
acquisition of shares in Salak and Darajat geothermal power plants in West
Java early this year.
The plants comprise several geothermal steam and electricity generating
units with aggregate capacity of 402 megawatts from electricity and 235MW
equivalent from steam. The plants have long-term energy sales contracts with
PT PLN, the Indonesian state-owned electricity corporation.
Egco began investing in Indonesia in 2014 by acquiring a 20% indirect
ownership interest in the Star Energy geothermal power plant, which has
total installed capacity of 227MW.
Egco Group affiliates, Star Energy Group Holdings Pte Ltd and AC Energy
Holdings Inc, acquired the shares from Chevron's affiliates. Egco Group's
investment interest in the projects is 20.1%, with the acquisitions
immediately generating revenue.
Egco has six power projects under construction at home and abroad: three
small power plant (SPP) projects in Thailand, the Xayaburi hydropower
project in Laos, and the San Buenaventura and Masinloc Unit 3 coal-fired
power plants in the Philippines.
Mr Chanin said the Klongluang SPP power project in Thailand, with total
equity contracted capacity of 102MW, is due to start commercial operations
next month.
Egco has two other projects in Laos, the Pak Beng and Nam Thuen 1 hydropower
projects, which are yet to break ground. The former is waiting for approval
from the Mekong River Commission, and the latter is pending the
attorney-general's review of the Power Purchase Agreement (PPA).
Egco is also negotiating the tariff to help the expansion of the Star Energy
geothermal power plant in Indonesia, and the electricity price and PPA for
the Quang Tri coal-fired power project in Vietnam.
EGCO shares closed yesterday on the Stock Exchange of Thailand at 211 baht,
up two baht in trade worth 23.3 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1256582/indonesia-deals-power-egco-
profit
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
"The Belt and Road Initiative" improved Trade between China and Cambodia; North Asia Resources Holdings Limited (00061) takes advantage of the Opportunity
"The Belt and Road Initiative" improved Trade between China and Cambodia;
North Asia Resources Holdings Limited (00061) takes advantage of the
Opportunity
At 24 March 2017, the Big Data Report of Trade Cooperation under the Belt
and Road Initiative 2017 released. According to the figures, It was reported
that the total trade volume between China and the along countries in 2016
about 953.59 billion US dollars, around 25.7% of the total trade volume of
China. The export from China to the along countries increased steadily since
2011. In 2016, the export volume from China to along countries is about
587.48 billion US dollars and reached a high level in the recent years.
Among which, Kyrgyzstan, Hungary, Romania, Cambodia and other 19 countries
are in large trade scale between China. And the trade volume growth faster
than the others, in the China's large trade volume, and trade growth is
faster and in the context of global trade weakness, China is a "potential
growth" country.
Cambodia, the cassava is the main crop and export product country, is an
important node in Southeast Asia as an important step in China's "the Belt
and Road Initiative". It has just begun to embark on industrialization,
infrastructure and other aspects are constantly improving, which contains
great investment opportunities. Utilizing a large-scale cassava planting in
Cambodia, it can not only achieve the base of processing plants, but also
save 80% of the cost of transportation of raw materials, but also solve the
problem of fresh cassava storage.
Responding to the national strategies, North Asia Resources Holdings Limited
reverted the corporate vision to the environmental biotechnology business.
Surfing the trends of the Belt and Road Initiative and having an insight of
the potential development of the Cambodia's Economy, North Asia Resources
Holdings Limited (00061.HK) (the "Company") has acquired some land resources
in Cambodia and intended to build up a standardise and continuing
sustainable business model for cassava business. The Company has also
vigorously develop Biofuels Ethanol to strive for sustained competitiveness
in the global marketplace.
At 31 March 2017, the Company announced the intention, in the consideration
of not more than US$53,200,000, to acquire 21,000 mu of the Economic Land
Concession in Pursat Province of Cambodia. The Company shall satisfy the
consideration in (i) an aggregate of HK$28,000,000 as the Deposit will be
payable in cash by three tranches by the Company to the Obligors on dates
mutually agreed between the parties to the Acquisition Agreement prior to
Completion; and (ii) the remaining balance of the consideration will be
satisfied by the Company by way of allotment and issuance of a maximum of
11,512,878,787 Consideration Shares approximately 13.63% of the enlarged
issued share capital.
At 13 April 2017, the Company further announced the execution of strategic
cooperation framework agreement between the Company and Henan Tianguan
Enterprise Group Co., Ltd.. Pursuant to the Strategic Cooperation Framework
Agreement, the parties agreed that, among other things, the Company shall
cooperate with Henan Tianguan in planning to build a recycling industrial
module park in Cambodia using tapiocas as raw materials for the production
of 100,000 tons of ethanol biofuel and their by-products annually, such as
methane, carbon dioxide, bio-solid organic fertilizers and bio-power
generation.
The current principal businesses of the Company are to sales of information
technology products, system integration, software development, technology
service and comprehensive product solution and geological survey,
exploration and development of coal, sales of coking coal and coal trading.
As the coal mining segment business was blocked by the government's policies
in the past few years and since the Chinese Government intended to improve
the better environmental conditions, lots of the polluted businesses were
blocked under the policies. Hence, from 2015, the Company realized the
necessity to explore different type of business segments to enrich the
profit base and the continuing sustainable vision. Commenced in 2016, the
Company trial started the cassava trading project in Cambodia and exploring
the chance to acquire the land resources. The Group targeted to acquire and
develop 10 land models, around 200 thousands ha area. And in March 2017, the
attempted acquisition of the first phase of the 315 thousands mu around 21
thousands mu area is in progress. Cassava can be used to develop of
bio-ethanol-based clean fuels and edible, industrial starches, biomass
pellet fuels, bio-generating, carbon dioxide, solid organic fertilizers and
corresponding ancillary products. By optimizing the combination of research
and development to develop from the beginning of land cultivation to end
products, i.e. Bio-fuel Ethanol, as a set of recycling modular business
model for the next step in the strategic development and competition in the
global industry market has laid a good foundation.
Strategic cooperation between the Company and Henan Tianguan to build up the
new production chain of cassava products.
Throughout the cooperation between the Company and Henan Tianguan, it was
planned to by using cassava as the raw material to build up an annual output
of 100,000 tons of bio-fuel ethanol and its by-products of a recycling
industry module park in Cambodia. Since Henan Tianguan is a leading global
player in the domestic bioenergy industry with a history of 78 years and the
largest domestic manufacturer of ethanol fuel, with an annual output of
approximately 800,000 tons of ethanol, it needs to import a large number of
tapioca slices annually from Southeast Asia as raw materials for the
production of ethanol. With respect to industrial technology, it has built
up over years numerous globally cutting-edge patents and proprietary
technologies in the areas of ethanol fuel, biogas and power generation, as
well as leading operational and management advantages. In particular, its
integrated technology for the co-production of "ethanol, electricity, biogas
and fertilizer" has gained a leading position in the domestic industry and
achieved globally advanced standards. Given the Company and Henan Tianguan
have interests in common, the Board believes that the entering into of the
Strategic Cooperation Framework Agreement would enable the Company to
leverage on the expertise of Henan Tianguan, a domestic bioenergy producer,
for the production, management and trading of ethanol biofuel and
by-products of tapioca-based ethanol fuel as well as for other business
cooperation in the recycling industry. The cooperation will substantially
help the Group further expand its modular management and production of
ethanol biofuel-related business, and will play a positive role in
broadening the income stream and industrial transformation for the Group in
the long run.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://en.acnnewswire.com/press-release/english/36607/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
North Asia Resources Holdings Limited (00061) takes advantage of the
Opportunity
At 24 March 2017, the Big Data Report of Trade Cooperation under the Belt
and Road Initiative 2017 released. According to the figures, It was reported
that the total trade volume between China and the along countries in 2016
about 953.59 billion US dollars, around 25.7% of the total trade volume of
China. The export from China to the along countries increased steadily since
2011. In 2016, the export volume from China to along countries is about
587.48 billion US dollars and reached a high level in the recent years.
Among which, Kyrgyzstan, Hungary, Romania, Cambodia and other 19 countries
are in large trade scale between China. And the trade volume growth faster
than the others, in the China's large trade volume, and trade growth is
faster and in the context of global trade weakness, China is a "potential
growth" country.
Cambodia, the cassava is the main crop and export product country, is an
important node in Southeast Asia as an important step in China's "the Belt
and Road Initiative". It has just begun to embark on industrialization,
infrastructure and other aspects are constantly improving, which contains
great investment opportunities. Utilizing a large-scale cassava planting in
Cambodia, it can not only achieve the base of processing plants, but also
save 80% of the cost of transportation of raw materials, but also solve the
problem of fresh cassava storage.
Responding to the national strategies, North Asia Resources Holdings Limited
reverted the corporate vision to the environmental biotechnology business.
Surfing the trends of the Belt and Road Initiative and having an insight of
the potential development of the Cambodia's Economy, North Asia Resources
Holdings Limited (00061.HK) (the "Company") has acquired some land resources
in Cambodia and intended to build up a standardise and continuing
sustainable business model for cassava business. The Company has also
vigorously develop Biofuels Ethanol to strive for sustained competitiveness
in the global marketplace.
At 31 March 2017, the Company announced the intention, in the consideration
of not more than US$53,200,000, to acquire 21,000 mu of the Economic Land
Concession in Pursat Province of Cambodia. The Company shall satisfy the
consideration in (i) an aggregate of HK$28,000,000 as the Deposit will be
payable in cash by three tranches by the Company to the Obligors on dates
mutually agreed between the parties to the Acquisition Agreement prior to
Completion; and (ii) the remaining balance of the consideration will be
satisfied by the Company by way of allotment and issuance of a maximum of
11,512,878,787 Consideration Shares approximately 13.63% of the enlarged
issued share capital.
At 13 April 2017, the Company further announced the execution of strategic
cooperation framework agreement between the Company and Henan Tianguan
Enterprise Group Co., Ltd.. Pursuant to the Strategic Cooperation Framework
Agreement, the parties agreed that, among other things, the Company shall
cooperate with Henan Tianguan in planning to build a recycling industrial
module park in Cambodia using tapiocas as raw materials for the production
of 100,000 tons of ethanol biofuel and their by-products annually, such as
methane, carbon dioxide, bio-solid organic fertilizers and bio-power
generation.
The current principal businesses of the Company are to sales of information
technology products, system integration, software development, technology
service and comprehensive product solution and geological survey,
exploration and development of coal, sales of coking coal and coal trading.
As the coal mining segment business was blocked by the government's policies
in the past few years and since the Chinese Government intended to improve
the better environmental conditions, lots of the polluted businesses were
blocked under the policies. Hence, from 2015, the Company realized the
necessity to explore different type of business segments to enrich the
profit base and the continuing sustainable vision. Commenced in 2016, the
Company trial started the cassava trading project in Cambodia and exploring
the chance to acquire the land resources. The Group targeted to acquire and
develop 10 land models, around 200 thousands ha area. And in March 2017, the
attempted acquisition of the first phase of the 315 thousands mu around 21
thousands mu area is in progress. Cassava can be used to develop of
bio-ethanol-based clean fuels and edible, industrial starches, biomass
pellet fuels, bio-generating, carbon dioxide, solid organic fertilizers and
corresponding ancillary products. By optimizing the combination of research
and development to develop from the beginning of land cultivation to end
products, i.e. Bio-fuel Ethanol, as a set of recycling modular business
model for the next step in the strategic development and competition in the
global industry market has laid a good foundation.
Strategic cooperation between the Company and Henan Tianguan to build up the
new production chain of cassava products.
Throughout the cooperation between the Company and Henan Tianguan, it was
planned to by using cassava as the raw material to build up an annual output
of 100,000 tons of bio-fuel ethanol and its by-products of a recycling
industry module park in Cambodia. Since Henan Tianguan is a leading global
player in the domestic bioenergy industry with a history of 78 years and the
largest domestic manufacturer of ethanol fuel, with an annual output of
approximately 800,000 tons of ethanol, it needs to import a large number of
tapioca slices annually from Southeast Asia as raw materials for the
production of ethanol. With respect to industrial technology, it has built
up over years numerous globally cutting-edge patents and proprietary
technologies in the areas of ethanol fuel, biogas and power generation, as
well as leading operational and management advantages. In particular, its
integrated technology for the co-production of "ethanol, electricity, biogas
and fertilizer" has gained a leading position in the domestic industry and
achieved globally advanced standards. Given the Company and Henan Tianguan
have interests in common, the Board believes that the entering into of the
Strategic Cooperation Framework Agreement would enable the Company to
leverage on the expertise of Henan Tianguan, a domestic bioenergy producer,
for the production, management and trading of ethanol biofuel and
by-products of tapioca-based ethanol fuel as well as for other business
cooperation in the recycling industry. The cooperation will substantially
help the Group further expand its modular management and production of
ethanol biofuel-related business, and will play a positive role in
broadening the income stream and industrial transformation for the Group in
the long run.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://en.acnnewswire.com/press-release/english/36607/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
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