Bakrie Darmakarya starts exploration at East Java geothermal project,
Indonesia
Bakrie Darmakarya Energi Group started exploring three geothermal wells in
Mendak Village, Dagangan District, Madiun and Ngebel Regency, Ponorogo
Regency as reported locally last week.
The company plans to drill hree geothermal wells, and a "target of each well
being capable of generating 55 megawatts of electrical energy," said Senior
Field Operation of PT Bakrie Darmakarya Energi, Saiful Anwar when met after
the team of Integrated Licensing Service Office (KPPT) Madiun Regency. This
would translate to 165 MW in total from three wells.
The details are two wells in Mendak, Madiun and one well in Ngebel district,
Ponorogo regency as presented to the district government of Madiun in an
exploration plan for the project which has a total area of 31,880 hectares.
According to Saiful Anwar, the company is widening the road infrastructure
to be able to access the drilling sites in Ponorogo. It is planned to start
drilling the two wells in Madiun after results of the drilling in Ponorogo
is known.
"The process is one-on-one first, we minimize the failure because the cost
of drilling is not cheap," said Saiful.
Saiful said in addition to widening the road, it will also conduct an
engineering review, as well as a social impact analysis.
Head of EMR Department of Madiun Regency, Aris Budi said KPPT Madiun
District called PT Bakrie Darmakarya Energi as the winner of the geothermal
energy project of Ministry of Energy and Mineral Resources which will have
to be updated on the progress of the project.
Madiun Regency hopes that the office and project facilities will be built in
Madiun, not in Ponorogo. Aris said that the existence of geothermal power
plant in Madiun Regency can improve the economy for Madiun people.
He predicts Madiun Regency will get Rp 100 billion ($7.5 million) from
non-tax revenue post with the presence of geothermal energy power plant in
Mendak.
If everything is according to plan, the geothermal power plant could be
completed in 2020 and provide electricity to the grid and the region.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.thinkgeoenergy.com/bakrie-darmakarya-starts-exploration-at-east-j
ava-geothermal-project-indonesia/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Tuesday, August 29, 2017
Saturday, August 26, 2017
Hundreds of solar projects registered to invest in Vietnam
Hundreds of solar projects registered to invest in Vietnam
By the end of July 2017, hundreds of solar projects had registered to invest
in Viet Nam with total capacity of up to 17,000 MW.
This was stated by the Energy Programme's officer under the US Agency for
International Development (USAID).
According to the World Bank's solar powered potential map, Viet Nam's solar
energy resources are plentiful, with thermal radiation of some 2,056
kw/sq.m. per year extending from the central provinces to the Mekong Delta.
Solar power is considered the main source of energy for renewable energy
development, which is drawing the attention of domestic and foreign
investors.
Notably, the southern province of Ninh Thuan has huge potential for solar
power, attracting some 140 projects, followed by Binh Thuan with 100
projects, Dak Lak with 13 projects and Khanh Hoa Province with 12 projects.
Of these, there are many large-scale projects, such as Thien Tan Group's
2,000 MW solar power project invested in Ninh Thuan and Quang Ngai, Xuan Cau
Group's 2000 MW in Tay Ninh, TH True-Milk Group and Xuan Thien Company
Limited's investment in solar power projects in Dak Lak with capacity of
some 3,000 MW each.
Regarding the electricity sector, Electricity of Viet Nam is also investing
in nearly 20 projects with total installed capacity of 2,000 MW in Khanh
Hoa, Kon Tum, Ninh Thuan, Binh Thuan and Dong Nai provinces.
Experts in the field of energy said with this enormous potential and the
Government's interest in this source of energy, in conjunction with the
announcement of the solar electricity price mechanism, which will come into
effect next month, the target of reaching total capacity of 12,000 MW from
solar power is feasible.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/185331/hundreds-of-solar-projects-
registered-to-invest-in-vn.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
By the end of July 2017, hundreds of solar projects had registered to invest
in Viet Nam with total capacity of up to 17,000 MW.
This was stated by the Energy Programme's officer under the US Agency for
International Development (USAID).
According to the World Bank's solar powered potential map, Viet Nam's solar
energy resources are plentiful, with thermal radiation of some 2,056
kw/sq.m. per year extending from the central provinces to the Mekong Delta.
Solar power is considered the main source of energy for renewable energy
development, which is drawing the attention of domestic and foreign
investors.
Notably, the southern province of Ninh Thuan has huge potential for solar
power, attracting some 140 projects, followed by Binh Thuan with 100
projects, Dak Lak with 13 projects and Khanh Hoa Province with 12 projects.
Of these, there are many large-scale projects, such as Thien Tan Group's
2,000 MW solar power project invested in Ninh Thuan and Quang Ngai, Xuan Cau
Group's 2000 MW in Tay Ninh, TH True-Milk Group and Xuan Thien Company
Limited's investment in solar power projects in Dak Lak with capacity of
some 3,000 MW each.
Regarding the electricity sector, Electricity of Viet Nam is also investing
in nearly 20 projects with total installed capacity of 2,000 MW in Khanh
Hoa, Kon Tum, Ninh Thuan, Binh Thuan and Dong Nai provinces.
Experts in the field of energy said with this enormous potential and the
Government's interest in this source of energy, in conjunction with the
announcement of the solar electricity price mechanism, which will come into
effect next month, the target of reaching total capacity of 12,000 MW from
solar power is feasible.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/185331/hundreds-of-solar-projects-
registered-to-invest-in-vn.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: PNOC P500M budget allocation for new LNG hub questioned by Senate
Philippines: PNOC P500M budget allocation for new LNG hub questioned by
Senate
DOE-LED PHILIPPINE NATIONAL OIL CO. (PNOC) WAS ASKED TO CONDUCT A
FEASIBILITY STUDY ON THE CURIOUS INCLUSION OF A P500 MILLION BUDGET FOR ITS
LNG PROJECT TO ENSURE IF THE GOVERNMENT SHOULD INVEST INTO IT, THE SENATE
COMMITTEE ON ENERGY SAID.
In a panel meeting, PNOC Senior Vice President for Management Services
Glenda Martinez was questioned about the agency's request, to which she said
the property allocation is for the LNG project's development.
"Presently, we have several locations that we are looking at. From those
real estate properties, we are providing for the acquisition of those," she
said.
However, Senator Sherwin Gatchalian pointed out the request will only be
approved if the DOE arm will submit a feasibility study on the project.
"I admire the bold vision of the [Department of Energy] Secretary [Alfonso
Cusi] to go into this LNG hub. It's really a vision for the energy future of
the country. But of course, we need to study this very carefully. we would
also have to clear the feasibility as well as the potential of this
project," Gatchalian said.
The big-scale LNG proposal will be built to supersede the Malampaya plant
after its depletion by 2024. DOE Chief Alfonso Cusi said the upcoming LNG
facility is expected to supply 3,500-MW of power capacity normally released
by the aging Malampaya.
Cusi added the PNOC volunteered to revise its budget proposal and submit it
back to the Senate Sub-Committee on Finance on the next hearing with the
National Electrification Administration and National Power Corporation.
"We will look into that, why we're going to buy that land. But that
feasibility study, I know, the private proponents, like China and Japan,
they make their own study and that was submitted to PNOC and that is the
basis of PNOC in making the decision," he said.
Earlier, the DOE directed the PNOC to develop an integrated LNG hub complete
with storage, liquefaction, regasification, and distribution facility, along
with an initial power reserve of 200-MW power capacity.
The state-run agency was also looking into a government-to-government (G2G)
partnership for the project with a $640 million budget of banked gas and
land as forward equity, to which has attracted at least 26 interested
investors from China, Indonesia, Japan, Singapore, South Korea, and the
United Arab Emirates (UAE).
But the PNOC failed in finding the right collaborator before its end-July
deadline. Since then, the Energy Department decided to include the private
sector's participation in investing in the LNG hub.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/08/25/pnoc-budget-allocation-lng-hub-senate
/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Senate
DOE-LED PHILIPPINE NATIONAL OIL CO. (PNOC) WAS ASKED TO CONDUCT A
FEASIBILITY STUDY ON THE CURIOUS INCLUSION OF A P500 MILLION BUDGET FOR ITS
LNG PROJECT TO ENSURE IF THE GOVERNMENT SHOULD INVEST INTO IT, THE SENATE
COMMITTEE ON ENERGY SAID.
In a panel meeting, PNOC Senior Vice President for Management Services
Glenda Martinez was questioned about the agency's request, to which she said
the property allocation is for the LNG project's development.
"Presently, we have several locations that we are looking at. From those
real estate properties, we are providing for the acquisition of those," she
said.
However, Senator Sherwin Gatchalian pointed out the request will only be
approved if the DOE arm will submit a feasibility study on the project.
"I admire the bold vision of the [Department of Energy] Secretary [Alfonso
Cusi] to go into this LNG hub. It's really a vision for the energy future of
the country. But of course, we need to study this very carefully. we would
also have to clear the feasibility as well as the potential of this
project," Gatchalian said.
The big-scale LNG proposal will be built to supersede the Malampaya plant
after its depletion by 2024. DOE Chief Alfonso Cusi said the upcoming LNG
facility is expected to supply 3,500-MW of power capacity normally released
by the aging Malampaya.
Cusi added the PNOC volunteered to revise its budget proposal and submit it
back to the Senate Sub-Committee on Finance on the next hearing with the
National Electrification Administration and National Power Corporation.
"We will look into that, why we're going to buy that land. But that
feasibility study, I know, the private proponents, like China and Japan,
they make their own study and that was submitted to PNOC and that is the
basis of PNOC in making the decision," he said.
Earlier, the DOE directed the PNOC to develop an integrated LNG hub complete
with storage, liquefaction, regasification, and distribution facility, along
with an initial power reserve of 200-MW power capacity.
The state-run agency was also looking into a government-to-government (G2G)
partnership for the project with a $640 million budget of banked gas and
land as forward equity, to which has attracted at least 26 interested
investors from China, Indonesia, Japan, Singapore, South Korea, and the
United Arab Emirates (UAE).
But the PNOC failed in finding the right collaborator before its end-July
deadline. Since then, the Energy Department decided to include the private
sector's participation in investing in the LNG hub.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/08/25/pnoc-budget-allocation-lng-hub-senate
/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
PT Intra Asia Indonesia to build $1-billion coal port in Vietnam
PT Intra Asia Indonesia to build $1-billion coal port in Vietnam
Seeing opportunities in Vietnam's increasing demand for imported coal,
Indonesian firm PT Intra Asia Indonesia is seeking the opportunity to build
a coal port in southern Vietnam with a total investment capital sum of $1
billion.
PT Intra Asia Indonesia to build $1-billion coal port in Vietnam, vietnam
economy, business news, vn news, vietnamnet bridge, english news, Vietnam
news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam
latest news, Vietnam breaking news
On August 23, PT Intra Asia Indonesia signed a memorandum of understanding
(MoU) with Hong Phat Coal and Resources Company in connection with its plan
to develop a coal port in southern Vietnam, according to newswire Jakarta
Post.
"The port will be mainly used for cargo and logistics that will serve export
and import between Indonesia and Vietnam, particularly coal," said Intra
Asia Indonesia commissioner Lutfi Ismail.
The port has a designed capacity of 15-20 million tonnes of coal per year
and would cut logistics costs for coal imports from Indonesia by a
significant margin.
The construction of the port would facilitate the sustainability of coal
exports from Indonesia to Vietnam and would help fuel power plants in the
country.
"Indonesia targets to export 4.5 million tonnes of coal to Vietnam this
year. We hope that the cooperation will boost Indonesian coal exports to
Vietnam," Lutfi Ismail added.
In recent years, coal imports have increased due to the rising demand of
domestic thermal power plants. Indonesia is one of the largest coal
exporters to Vietnam.
According to statistics published by the General Department of Vietnam
Customs, in the first seven months of this year, Vietnam imported 7.92
million tonnes of coal worth $801 million, with Electricity of Vietnam (EVN)
alone importing five million tonnes. The figure is expected to increase to
11 million tonnes by 2020 and 19 million tonnes by 2025.
EVN mostly uses imported coal to fuel coal-fired thermal power plants,
including Vinh Tan thermal power plant in the southern province of Binh
Thuan and Duyen Hai 3 and 4 thermal power plants in the southern province of
Tra Vinh, among others.
In early August, Deputy Prime Minister Trinh Dinh Dung requested the
Ministry of Transport and other relevant authorities to study plans to build
a coal port to meet the increasing demand for coal for thermal power plants
in the south.
According to the national power development plan, there will be seven
large-scale thermal power centres in the Mekong Delta, namely Long Phu, Song
Hau, Duyen Hai, Bac Lieu, An Giang, Kien Luong, and Tien Giang. The total
coal demand of these thermal power centres will reach 43 million tonnes by
2030.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/185336/pt-intra-asia-indonesia-to-
build--1-billion-coal-port-in-vietnam.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Seeing opportunities in Vietnam's increasing demand for imported coal,
Indonesian firm PT Intra Asia Indonesia is seeking the opportunity to build
a coal port in southern Vietnam with a total investment capital sum of $1
billion.
PT Intra Asia Indonesia to build $1-billion coal port in Vietnam, vietnam
economy, business news, vn news, vietnamnet bridge, english news, Vietnam
news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam
latest news, Vietnam breaking news
On August 23, PT Intra Asia Indonesia signed a memorandum of understanding
(MoU) with Hong Phat Coal and Resources Company in connection with its plan
to develop a coal port in southern Vietnam, according to newswire Jakarta
Post.
"The port will be mainly used for cargo and logistics that will serve export
and import between Indonesia and Vietnam, particularly coal," said Intra
Asia Indonesia commissioner Lutfi Ismail.
The port has a designed capacity of 15-20 million tonnes of coal per year
and would cut logistics costs for coal imports from Indonesia by a
significant margin.
The construction of the port would facilitate the sustainability of coal
exports from Indonesia to Vietnam and would help fuel power plants in the
country.
"Indonesia targets to export 4.5 million tonnes of coal to Vietnam this
year. We hope that the cooperation will boost Indonesian coal exports to
Vietnam," Lutfi Ismail added.
In recent years, coal imports have increased due to the rising demand of
domestic thermal power plants. Indonesia is one of the largest coal
exporters to Vietnam.
According to statistics published by the General Department of Vietnam
Customs, in the first seven months of this year, Vietnam imported 7.92
million tonnes of coal worth $801 million, with Electricity of Vietnam (EVN)
alone importing five million tonnes. The figure is expected to increase to
11 million tonnes by 2020 and 19 million tonnes by 2025.
EVN mostly uses imported coal to fuel coal-fired thermal power plants,
including Vinh Tan thermal power plant in the southern province of Binh
Thuan and Duyen Hai 3 and 4 thermal power plants in the southern province of
Tra Vinh, among others.
In early August, Deputy Prime Minister Trinh Dinh Dung requested the
Ministry of Transport and other relevant authorities to study plans to build
a coal port to meet the increasing demand for coal for thermal power plants
in the south.
According to the national power development plan, there will be seven
large-scale thermal power centres in the Mekong Delta, namely Long Phu, Song
Hau, Duyen Hai, Bac Lieu, An Giang, Kien Luong, and Tien Giang. The total
coal demand of these thermal power centres will reach 43 million tonnes by
2030.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/185336/pt-intra-asia-indonesia-to-
build--1-billion-coal-port-in-vietnam.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
US has opportunity to solve Myanmar's energy dilemma (Opinion)
US has opportunity to solve Myanmar's energy dilemma (Opinion)
Unable to meet soaring domestic demand for energy, Myanmar's government is
said to have entered preliminary discussions over a deal to buy electricity
from China. At the beginning of this month, sources close to the talks told
Reuters that three state-owned Chinese companies had submitted proposals
outlining how they could help Myanmar fill its widening energy gap, which
regularly results in extended blackouts.
The plan is to plug the country into the electricity network that powers
Yunnan, a province in southwestern China. But while any such deal could
temporarily solve Myanmar's energy crisis, it would also amount to a major
surrender of sovereignty.
Indeed, while many Myanmar residents would undoubtedly welcome a deal
resulting in a reliable supply of electricity reaching their homes and
businesses, the talks raise serious concerns over China's growing economic
influence.
Officials are also wary of extending China's power in the region, noting
that Beijing has already pushed for access to the strategic deep-sea port of
Kyaukpyu in southern Myanmar as part of the One Belt, One Road program.
But what if there's a better way than jumping into bed with Beijing?
A country in the dark
Only 32% of Myanmar's 53-million-strong population has access to
electricity, and even those who do have power only register annual
consumptions of 156 kilowatt-hours on average (compared with 3,900kWh for
China and 13,000kWh for the US).
Like most of its neighbors, Myanmar's government has zeroed in on coal as
the most efficient way to address the energy shortfall. Last month,
Naypyidaw unveiled plans to build a new US$3 billion coal-fired power plant
in the eastern state of Kayin. This plan backfired, as a coalition of
activist groups called for the planned plant to be scrapped in favor of
developing renewables.
While it is true that Myanmar has much untapped hydropower potential,
building dams and managing water throughout the Mekong region is a
protracted and immensely complicated task that will require years to resolve
- and involve important concessions to Beijing. As for solar and wind, they
continue to be simply too expensive to deploy at the scale necessary to
power the whole country.
With Myanmar's demand for electricity rising by 13% every year, the
government is quickly running out of time. In the words of Win Htein, one of
the top leaders of the National League for Democracy, "If we have to choose
between the dilemma of coal and the development of the country, we
prioritize the development."
Enter the US
Ironically, Myanmar's particular quandary makes a strong case for the Donald
Trump administration's polemical decision to demand that Washington finance
"clean coal" projects in developing countries. Removing barriers to the
funding of coal projects launched by emerging economies would allow the US
to sell more of its coal to developing countries - and build much-needed
strategic bridges in regions such as Southeast Asia.
What's more, Japan - which is Myanmar's largest supplier of official
development assistance - has also jumped into the mix and has offered to
help the country build clean-coal plants.
Even if in some Washington quarters coal is frowned upon, a realist approach
to the challenges facing developing countries like Myanmar shows that the
fuel is still the most effective way to meet their energy needs. That
energy-poor Myanmar is now building bridges with a major US rival over its
need to increase electricity access serves as a stark reminder of that
reality.
While Trump's Asia policy is a flaming train wreck - toying with striking
North Korea, scrapping the Trans-Pacific Partnership, raising doubts about
Washington's commitment to regional security, endangering strategic
alliances, threatening shortsighted trade wars - on energy his
administration might be on to something. Indeed, seen from a Southeast Asian
vantage point, the Trump administration's announcement to use the so-called
Green Climate Fund to provide developing countries with the funds for
utilizing coal could act as a major diplomatic driver.
The story goes back to a 2013 World Bank decision to ban the financing of
coal power plants, which was encouraged by the administration of US
president Barack Obama. While the thinking behind it was that renewables
would gain ground, the decision didn't factor in the fact that for many
developing countries solar and wind are too expensive and unreliable to be
taken into account.
Since Southeast Asia is not just a developing economy but an export
juggernaut, electricity prices are of major concern for energy-intensive
industries that would have a hard time accommodating higher renewable
prices. This explains why, despite having signed the Paris climate deal,
Indonesia, India, Japan, Malaysia, the Philippines, South Korea, Thailand,
Taiwan and Vietnam are all planning either to upgrade their coal power
plants or to build new ones.
To varying degrees, these countries are compelled by booming populations,
low rates of access to electricity and political pressures to take concrete
action. Shunned by Western constraints, many have turned to Beijing for coal
technology - but, as Pakistan found out, Chinese-financed coal plants are
being built using severely outdated technology.
And this is where Trump's energy plans come in: His administration is trying
to boost the export of US clean-coal technology - such as supercritical and
ultra-supercritical plants - that could be an avenue to counter China's
dominance again.
Next, Washington is seeking to reverse the World Bank's course by using its
voting power to push for international banks to open funds for the promotion
of carbon-based energy plants abroad.
Not only would countries such as Myanmar benefit from an alternative
financing channel to the China-controlled Asian Infrastructure Investment
Bank - and its $250 billion war chest for infrastructure projects - US
technology is more advanced than what Beijing has on offer.
China has understood that the best way to patch relations with its Southeast
Asian neighbors is by providing assistance that the West won't - and
building coal power plants ranks close to the top of the list. The Trump
administration's bid to loosen World Bank financing conditions for fossil
fuels would deal a major blow to Beijing, and could restore some of
Washington's clout in the region.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.atimes.com/us-opportunity-solve-myanmars-energy-dilemma/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Unable to meet soaring domestic demand for energy, Myanmar's government is
said to have entered preliminary discussions over a deal to buy electricity
from China. At the beginning of this month, sources close to the talks told
Reuters that three state-owned Chinese companies had submitted proposals
outlining how they could help Myanmar fill its widening energy gap, which
regularly results in extended blackouts.
The plan is to plug the country into the electricity network that powers
Yunnan, a province in southwestern China. But while any such deal could
temporarily solve Myanmar's energy crisis, it would also amount to a major
surrender of sovereignty.
Indeed, while many Myanmar residents would undoubtedly welcome a deal
resulting in a reliable supply of electricity reaching their homes and
businesses, the talks raise serious concerns over China's growing economic
influence.
Officials are also wary of extending China's power in the region, noting
that Beijing has already pushed for access to the strategic deep-sea port of
Kyaukpyu in southern Myanmar as part of the One Belt, One Road program.
But what if there's a better way than jumping into bed with Beijing?
A country in the dark
Only 32% of Myanmar's 53-million-strong population has access to
electricity, and even those who do have power only register annual
consumptions of 156 kilowatt-hours on average (compared with 3,900kWh for
China and 13,000kWh for the US).
Like most of its neighbors, Myanmar's government has zeroed in on coal as
the most efficient way to address the energy shortfall. Last month,
Naypyidaw unveiled plans to build a new US$3 billion coal-fired power plant
in the eastern state of Kayin. This plan backfired, as a coalition of
activist groups called for the planned plant to be scrapped in favor of
developing renewables.
While it is true that Myanmar has much untapped hydropower potential,
building dams and managing water throughout the Mekong region is a
protracted and immensely complicated task that will require years to resolve
- and involve important concessions to Beijing. As for solar and wind, they
continue to be simply too expensive to deploy at the scale necessary to
power the whole country.
With Myanmar's demand for electricity rising by 13% every year, the
government is quickly running out of time. In the words of Win Htein, one of
the top leaders of the National League for Democracy, "If we have to choose
between the dilemma of coal and the development of the country, we
prioritize the development."
Enter the US
Ironically, Myanmar's particular quandary makes a strong case for the Donald
Trump administration's polemical decision to demand that Washington finance
"clean coal" projects in developing countries. Removing barriers to the
funding of coal projects launched by emerging economies would allow the US
to sell more of its coal to developing countries - and build much-needed
strategic bridges in regions such as Southeast Asia.
What's more, Japan - which is Myanmar's largest supplier of official
development assistance - has also jumped into the mix and has offered to
help the country build clean-coal plants.
Even if in some Washington quarters coal is frowned upon, a realist approach
to the challenges facing developing countries like Myanmar shows that the
fuel is still the most effective way to meet their energy needs. That
energy-poor Myanmar is now building bridges with a major US rival over its
need to increase electricity access serves as a stark reminder of that
reality.
While Trump's Asia policy is a flaming train wreck - toying with striking
North Korea, scrapping the Trans-Pacific Partnership, raising doubts about
Washington's commitment to regional security, endangering strategic
alliances, threatening shortsighted trade wars - on energy his
administration might be on to something. Indeed, seen from a Southeast Asian
vantage point, the Trump administration's announcement to use the so-called
Green Climate Fund to provide developing countries with the funds for
utilizing coal could act as a major diplomatic driver.
The story goes back to a 2013 World Bank decision to ban the financing of
coal power plants, which was encouraged by the administration of US
president Barack Obama. While the thinking behind it was that renewables
would gain ground, the decision didn't factor in the fact that for many
developing countries solar and wind are too expensive and unreliable to be
taken into account.
Since Southeast Asia is not just a developing economy but an export
juggernaut, electricity prices are of major concern for energy-intensive
industries that would have a hard time accommodating higher renewable
prices. This explains why, despite having signed the Paris climate deal,
Indonesia, India, Japan, Malaysia, the Philippines, South Korea, Thailand,
Taiwan and Vietnam are all planning either to upgrade their coal power
plants or to build new ones.
To varying degrees, these countries are compelled by booming populations,
low rates of access to electricity and political pressures to take concrete
action. Shunned by Western constraints, many have turned to Beijing for coal
technology - but, as Pakistan found out, Chinese-financed coal plants are
being built using severely outdated technology.
And this is where Trump's energy plans come in: His administration is trying
to boost the export of US clean-coal technology - such as supercritical and
ultra-supercritical plants - that could be an avenue to counter China's
dominance again.
Next, Washington is seeking to reverse the World Bank's course by using its
voting power to push for international banks to open funds for the promotion
of carbon-based energy plants abroad.
Not only would countries such as Myanmar benefit from an alternative
financing channel to the China-controlled Asian Infrastructure Investment
Bank - and its $250 billion war chest for infrastructure projects - US
technology is more advanced than what Beijing has on offer.
China has understood that the best way to patch relations with its Southeast
Asian neighbors is by providing assistance that the West won't - and
building coal power plants ranks close to the top of the list. The Trump
administration's bid to loosen World Bank financing conditions for fossil
fuels would deal a major blow to Beijing, and could restore some of
Washington's clout in the region.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.atimes.com/us-opportunity-solve-myanmars-energy-dilemma/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
US has opportunity to solve Myanmar's energy dilemma (Opinion)
US has opportunity to solve Myanmar's energy dilemma (Opinion)
Unable to meet soaring domestic demand for energy, Myanmar's government is
said to have entered preliminary discussions over a deal to buy electricity
from China. At the beginning of this month, sources close to the talks told
Reuters that three state-owned Chinese companies had submitted proposals
outlining how they could help Myanmar fill its widening energy gap, which
regularly results in extended blackouts.
The plan is to plug the country into the electricity network that powers
Yunnan, a province in southwestern China. But while any such deal could
temporarily solve Myanmar's energy crisis, it would also amount to a major
surrender of sovereignty.
Indeed, while many Myanmar residents would undoubtedly welcome a deal
resulting in a reliable supply of electricity reaching their homes and
businesses, the talks raise serious concerns over China's growing economic
influence.
Officials are also wary of extending China's power in the region, noting
that Beijing has already pushed for access to the strategic deep-sea port of
Kyaukpyu in southern Myanmar as part of the One Belt, One Road program.
But what if there's a better way than jumping into bed with Beijing?
A country in the dark
Only 32% of Myanmar's 53-million-strong population has access to
electricity, and even those who do have power only register annual
consumptions of 156 kilowatt-hours on average (compared with 3,900kWh for
China and 13,000kWh for the US).
Like most of its neighbors, Myanmar's government has zeroed in on coal as
the most efficient way to address the energy shortfall. Last month,
Naypyidaw unveiled plans to build a new US$3 billion coal-fired power plant
in the eastern state of Kayin. This plan backfired, as a coalition of
activist groups called for the planned plant to be scrapped in favor of
developing renewables.
While it is true that Myanmar has much untapped hydropower potential,
building dams and managing water throughout the Mekong region is a
protracted and immensely complicated task that will require years to resolve
- and involve important concessions to Beijing. As for solar and wind, they
continue to be simply too expensive to deploy at the scale necessary to
power the whole country.
With Myanmar's demand for electricity rising by 13% every year, the
government is quickly running out of time. In the words of Win Htein, one of
the top leaders of the National League for Democracy, "If we have to choose
between the dilemma of coal and the development of the country, we
prioritize the development."
Enter the US
Ironically, Myanmar's particular quandary makes a strong case for the Donald
Trump administration's polemical decision to demand that Washington finance
"clean coal" projects in developing countries. Removing barriers to the
funding of coal projects launched by emerging economies would allow the US
to sell more of its coal to developing countries - and build much-needed
strategic bridges in regions such as Southeast Asia.
What's more, Japan - which is Myanmar's largest supplier of official
development assistance - has also jumped into the mix and has offered to
help the country build clean-coal plants.
Even if in some Washington quarters coal is frowned upon, a realist approach
to the challenges facing developing countries like Myanmar shows that the
fuel is still the most effective way to meet their energy needs. That
energy-poor Myanmar is now building bridges with a major US rival over its
need to increase electricity access serves as a stark reminder of that
reality.
While Trump's Asia policy is a flaming train wreck - toying with striking
North Korea, scrapping the Trans-Pacific Partnership, raising doubts about
Washington's commitment to regional security, endangering strategic
alliances, threatening shortsighted trade wars - on energy his
administration might be on to something. Indeed, seen from a Southeast Asian
vantage point, the Trump administration's announcement to use the so-called
Green Climate Fund to provide developing countries with the funds for
utilizing coal could act as a major diplomatic driver.
The story goes back to a 2013 World Bank decision to ban the financing of
coal power plants, which was encouraged by the administration of US
president Barack Obama. While the thinking behind it was that renewables
would gain ground, the decision didn't factor in the fact that for many
developing countries solar and wind are too expensive and unreliable to be
taken into account.
Since Southeast Asia is not just a developing economy but an export
juggernaut, electricity prices are of major concern for energy-intensive
industries that would have a hard time accommodating higher renewable
prices. This explains why, despite having signed the Paris climate deal,
Indonesia, India, Japan, Malaysia, the Philippines, South Korea, Thailand,
Taiwan and Vietnam are all planning either to upgrade their coal power
plants or to build new ones.
To varying degrees, these countries are compelled by booming populations,
low rates of access to electricity and political pressures to take concrete
action. Shunned by Western constraints, many have turned to Beijing for coal
technology - but, as Pakistan found out, Chinese-financed coal plants are
being built using severely outdated technology.
And this is where Trump's energy plans come in: His administration is trying
to boost the export of US clean-coal technology - such as supercritical and
ultra-supercritical plants - that could be an avenue to counter China's
dominance again.
Next, Washington is seeking to reverse the World Bank's course by using its
voting power to push for international banks to open funds for the promotion
of carbon-based energy plants abroad.
Not only would countries such as Myanmar benefit from an alternative
financing channel to the China-controlled Asian Infrastructure Investment
Bank - and its $250 billion war chest for infrastructure projects - US
technology is more advanced than what Beijing has on offer.
China has understood that the best way to patch relations with its Southeast
Asian neighbors is by providing assistance that the West won't - and
building coal power plants ranks close to the top of the list. The Trump
administration's bid to loosen World Bank financing conditions for fossil
fuels would deal a major blow to Beijing, and could restore some of
Washington's clout in the region.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.atimes.com/us-opportunity-solve-myanmars-energy-dilemma/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Unable to meet soaring domestic demand for energy, Myanmar's government is
said to have entered preliminary discussions over a deal to buy electricity
from China. At the beginning of this month, sources close to the talks told
Reuters that three state-owned Chinese companies had submitted proposals
outlining how they could help Myanmar fill its widening energy gap, which
regularly results in extended blackouts.
The plan is to plug the country into the electricity network that powers
Yunnan, a province in southwestern China. But while any such deal could
temporarily solve Myanmar's energy crisis, it would also amount to a major
surrender of sovereignty.
Indeed, while many Myanmar residents would undoubtedly welcome a deal
resulting in a reliable supply of electricity reaching their homes and
businesses, the talks raise serious concerns over China's growing economic
influence.
Officials are also wary of extending China's power in the region, noting
that Beijing has already pushed for access to the strategic deep-sea port of
Kyaukpyu in southern Myanmar as part of the One Belt, One Road program.
But what if there's a better way than jumping into bed with Beijing?
A country in the dark
Only 32% of Myanmar's 53-million-strong population has access to
electricity, and even those who do have power only register annual
consumptions of 156 kilowatt-hours on average (compared with 3,900kWh for
China and 13,000kWh for the US).
Like most of its neighbors, Myanmar's government has zeroed in on coal as
the most efficient way to address the energy shortfall. Last month,
Naypyidaw unveiled plans to build a new US$3 billion coal-fired power plant
in the eastern state of Kayin. This plan backfired, as a coalition of
activist groups called for the planned plant to be scrapped in favor of
developing renewables.
While it is true that Myanmar has much untapped hydropower potential,
building dams and managing water throughout the Mekong region is a
protracted and immensely complicated task that will require years to resolve
- and involve important concessions to Beijing. As for solar and wind, they
continue to be simply too expensive to deploy at the scale necessary to
power the whole country.
With Myanmar's demand for electricity rising by 13% every year, the
government is quickly running out of time. In the words of Win Htein, one of
the top leaders of the National League for Democracy, "If we have to choose
between the dilemma of coal and the development of the country, we
prioritize the development."
Enter the US
Ironically, Myanmar's particular quandary makes a strong case for the Donald
Trump administration's polemical decision to demand that Washington finance
"clean coal" projects in developing countries. Removing barriers to the
funding of coal projects launched by emerging economies would allow the US
to sell more of its coal to developing countries - and build much-needed
strategic bridges in regions such as Southeast Asia.
What's more, Japan - which is Myanmar's largest supplier of official
development assistance - has also jumped into the mix and has offered to
help the country build clean-coal plants.
Even if in some Washington quarters coal is frowned upon, a realist approach
to the challenges facing developing countries like Myanmar shows that the
fuel is still the most effective way to meet their energy needs. That
energy-poor Myanmar is now building bridges with a major US rival over its
need to increase electricity access serves as a stark reminder of that
reality.
While Trump's Asia policy is a flaming train wreck - toying with striking
North Korea, scrapping the Trans-Pacific Partnership, raising doubts about
Washington's commitment to regional security, endangering strategic
alliances, threatening shortsighted trade wars - on energy his
administration might be on to something. Indeed, seen from a Southeast Asian
vantage point, the Trump administration's announcement to use the so-called
Green Climate Fund to provide developing countries with the funds for
utilizing coal could act as a major diplomatic driver.
The story goes back to a 2013 World Bank decision to ban the financing of
coal power plants, which was encouraged by the administration of US
president Barack Obama. While the thinking behind it was that renewables
would gain ground, the decision didn't factor in the fact that for many
developing countries solar and wind are too expensive and unreliable to be
taken into account.
Since Southeast Asia is not just a developing economy but an export
juggernaut, electricity prices are of major concern for energy-intensive
industries that would have a hard time accommodating higher renewable
prices. This explains why, despite having signed the Paris climate deal,
Indonesia, India, Japan, Malaysia, the Philippines, South Korea, Thailand,
Taiwan and Vietnam are all planning either to upgrade their coal power
plants or to build new ones.
To varying degrees, these countries are compelled by booming populations,
low rates of access to electricity and political pressures to take concrete
action. Shunned by Western constraints, many have turned to Beijing for coal
technology - but, as Pakistan found out, Chinese-financed coal plants are
being built using severely outdated technology.
And this is where Trump's energy plans come in: His administration is trying
to boost the export of US clean-coal technology - such as supercritical and
ultra-supercritical plants - that could be an avenue to counter China's
dominance again.
Next, Washington is seeking to reverse the World Bank's course by using its
voting power to push for international banks to open funds for the promotion
of carbon-based energy plants abroad.
Not only would countries such as Myanmar benefit from an alternative
financing channel to the China-controlled Asian Infrastructure Investment
Bank - and its $250 billion war chest for infrastructure projects - US
technology is more advanced than what Beijing has on offer.
China has understood that the best way to patch relations with its Southeast
Asian neighbors is by providing assistance that the West won't - and
building coal power plants ranks close to the top of the list. The Trump
administration's bid to loosen World Bank financing conditions for fossil
fuels would deal a major blow to Beijing, and could restore some of
Washington's clout in the region.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.atimes.com/us-opportunity-solve-myanmars-energy-dilemma/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Malaysia's Petronas raises payout commitment to government as profit surges
Malaysia's Petronas raises payout commitment to government as profit surges
Malaysia's state-owned energy firm Petroliam Nasional Bhd [PETR.UL] on
Friday raised its dividend payment commitment to the government after
reporting that second-quarter profit quadrupled because of higher oil prices
and improved margins.
But Petronas, as the company is known, maintained a cautious outlook, saying
its overall year-end performance is expected to be "fair" as oil price
volatility continues.
The energy firm's second-quarter profit rose to 7.06 billion ringgit ($1.65
billion) from 1.68 billion ringgit in the corresponding quarter last year.
Revenue rose 10 percent to 51.63 billion ringgit.
"Despite higher oil prices compared to a year ago and overall stronger
financial and operational performance, the industry remains volatile, and we
are tempering our optimism," Chief Executive Officer Wan Zulkiflee Wan
Ariffin said at a news conference.
"We temper our outlook because we are conservative," he said, adding that
the softer outlook does not have an impact on the dividend payout to its
sole shareholder, the Malaysian government.
Petronas, Malaysia's only Fortune 500 company, will pay the government 16
billion ringgit this year up from its earlier commitment of 13 billion
ringgit, said Wan Zulkiflee.
The increase was recently approved by the board due to the company's
financial performance, he said. Petronas last year paid the government 16
billion ringgit and 26 billion ringgit in 2015.
Petronas' dividends last year accounted for 7.5 percent of total government
revenue.
The money will add to the government coffers at a time when it has announced
infrastructure projects to build momentum for a general election that Prime
Minister Najib Razak is required to call by the middle of 2018.
COST CUTS
Petronas, like other oil majors, has taken a hit from lower oil prices.
Brent crude LCOc1, currently above $52 a barrel, is now less than half what
it was in mid-2014.
The energy firm has focused on cutting costs amid expectations that the low
oil price environment will continue.
Petronas has said it will slash spending by 50 billion ringgit from 2016 to
2019. It has also saved 7 billion ringgit from other cost optimization
efforts, Wan Zulkiflee told Reuters last week.
"The price of oil today, at around $50 per barrel, this is the level we must
take as the norm." Wan Zulkiflee said. He expects oil prices at $49 per
barrel at the end of the year and in the "high $40s" in 2018.
He said Petronas has decided to divest its position in Algeria and concluded
a partnership in Cameroon, as part of the company's portfolio review.
Last month, Petronas scrapped its proposed $29 billion liquefied natural gas
export terminal project in western Canada due to soft prices.
On Friday, Wan Zulkiflee said the termination would cost the company a total
of 1.5 billion ringgit after tax. About 700 million ringgit would be
impairment charges, while the rest will be paid to TransCanada (TRP.TO),
which was set to built a pipeline for the project.
"(We are) looking at our options and finalizing our strategy on how to
monetize our North American gas assets. All options are being looked at,"
Wan Zulkiflee said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.reuters.com/article/us-petronas-results-idUSKCN1B50GK
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Malaysia's state-owned energy firm Petroliam Nasional Bhd [PETR.UL] on
Friday raised its dividend payment commitment to the government after
reporting that second-quarter profit quadrupled because of higher oil prices
and improved margins.
But Petronas, as the company is known, maintained a cautious outlook, saying
its overall year-end performance is expected to be "fair" as oil price
volatility continues.
The energy firm's second-quarter profit rose to 7.06 billion ringgit ($1.65
billion) from 1.68 billion ringgit in the corresponding quarter last year.
Revenue rose 10 percent to 51.63 billion ringgit.
"Despite higher oil prices compared to a year ago and overall stronger
financial and operational performance, the industry remains volatile, and we
are tempering our optimism," Chief Executive Officer Wan Zulkiflee Wan
Ariffin said at a news conference.
"We temper our outlook because we are conservative," he said, adding that
the softer outlook does not have an impact on the dividend payout to its
sole shareholder, the Malaysian government.
Petronas, Malaysia's only Fortune 500 company, will pay the government 16
billion ringgit this year up from its earlier commitment of 13 billion
ringgit, said Wan Zulkiflee.
The increase was recently approved by the board due to the company's
financial performance, he said. Petronas last year paid the government 16
billion ringgit and 26 billion ringgit in 2015.
Petronas' dividends last year accounted for 7.5 percent of total government
revenue.
The money will add to the government coffers at a time when it has announced
infrastructure projects to build momentum for a general election that Prime
Minister Najib Razak is required to call by the middle of 2018.
COST CUTS
Petronas, like other oil majors, has taken a hit from lower oil prices.
Brent crude LCOc1, currently above $52 a barrel, is now less than half what
it was in mid-2014.
The energy firm has focused on cutting costs amid expectations that the low
oil price environment will continue.
Petronas has said it will slash spending by 50 billion ringgit from 2016 to
2019. It has also saved 7 billion ringgit from other cost optimization
efforts, Wan Zulkiflee told Reuters last week.
"The price of oil today, at around $50 per barrel, this is the level we must
take as the norm." Wan Zulkiflee said. He expects oil prices at $49 per
barrel at the end of the year and in the "high $40s" in 2018.
He said Petronas has decided to divest its position in Algeria and concluded
a partnership in Cameroon, as part of the company's portfolio review.
Last month, Petronas scrapped its proposed $29 billion liquefied natural gas
export terminal project in western Canada due to soft prices.
On Friday, Wan Zulkiflee said the termination would cost the company a total
of 1.5 billion ringgit after tax. About 700 million ringgit would be
impairment charges, while the rest will be paid to TransCanada (TRP.TO),
which was set to built a pipeline for the project.
"(We are) looking at our options and finalizing our strategy on how to
monetize our North American gas assets. All options are being looked at,"
Wan Zulkiflee said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.reuters.com/article/us-petronas-results-idUSKCN1B50GK
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
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