Regional Energy Cooperation and the

Role of the Private Sector in Asia and

the Pacific: Regional Cooperation in
Energy Security Issues

Weerawat Chantanakome, PhD

Executive Director, ASEAN Centre for Energy
Asia-Pacific Business Forum 2008
United Nations Conference Centre, Bangkok, Thailand,
27 April 2008
Introduction : Energy Security as Reason for ASEAN
Energy Cooperation
GLOBAL OIL ASEAN ENERGY COOPERATION
2004 CRISIS 2004
APAEC (1999-2004 and 2004-2009)
Establishment of ACE (1999)
Hanoi Plan of Action / MOU on TAGP
E ASEAN Vision 2020 (1999)
N ASEAN Program of Action on Energy Cooperation (1995-
1999)
E ASEAN Energy Amendment (1995); AEMEC to AMEM
Priority for ASEAN Power Grid, APSA and TAGP (1994)
R
1990 Gulf War (1990) 1990
G Thai-Indo Coal Coop. (1990)
Y AEEMTRC creation (1988)
Iran – Iraq Tanker War Phil – Indo Coal Coop. (1987
(1981-1988) ASEAN Energy Cooperation Agreement (1986)
1985 S ASEAN Petroleum Security Agreement (APSA, 1986) 1985
E
ASEAN Emergency Petroleum Sharing Scheme
C Supplementary to ASCOPE’s (1983)
1980 U 1st Meeting of HAPUA (1981) 1980
2nd Oil Shock (1979) R Indonesia & Malaysia assisted other ASEAN Countries on
oil needs / 1st AEMEC (1980)
I ASCOPE’s Emergency Petroleum sharing scheme
(1977)
1975 T ASCOPE creation (1976) 1975
Y
1st Oil Shock (1973)

1970 1970
ASEAN Establishment (1967)
ASCOPE: ASEAN Council on Petroleum ; AEEMTRC: ASEAN-EU Energy Management Training and Research Centre;
TAGP: Trans-ASEAN Gas Pipeline; AMEM: ASEAN Ministers on Energy Meeting
 ASEAN Centre for Energy (ACE)
ASEAN
ASEANHEADS
HEADSOF
OF
STATE/GOVERNMENT
STATE/GOVERNMENT

OTHER AMM AMMST ASEAN OTHER

AEM AMEM
MINISTERIAL SG MINISTERIAL
MEETINGS MEETINGS

ASC SOM COST

SOME ASCOPE HAPUA
ASEAN
LEGEND: CENTRE
AEBF: ASEAN Energy Business Forum
FOR
AEM: ASEAN Economic Ministers ENERGY
AFOC: ASEAN Forum on Coal
AMEM: ASEAN Ministers of Energy Meeting
(ACE)
AMM: ASEAN Ministerial Meeting
AMMST: ASEAN Ministerial Meeting
on Science & Technology
ASC: ASEAN Standing Committee
ASCOPE: ASEAN Council on Petroleum
COST: Committee on Science & Technology
EE&C SSN: Energy Efficiency and
Conservation Subsectoral Network
HAPUA: Heads of ASEAN Power SCNCER NRSE EE & C NES AEBF AFOC REPP-
Utilities/Authorities
SSN SSN SSN SSN
NRSE SSN: New & Renewable Sources of
Energy Subsectoral Network
SCNCER: Sub-Committee on Non-Conventional
Energy Research
S G: Secretary General
SOM: Senior Officials Meeting
SOME: Senior Officials Meeting on Energy
REPP-SSN: Regional Energy Policy and Planning
– Sub Sector Network
ASEAN
SECRETARIAT
ASEAN Plan of Action for Energy
Cooperation (APAEC) 2004-2009
Programs Approaches
A 1.Trans-ASEAN
Trans-ASEANGas
GasPipeline
Pipeline 1 narrow development gap

2.ASEAN
ASEANPower
PowerGrid
Grid
P 2
greater private sector
involvement and participation
3.Coal
Coaland
andCCT
CCT
3 capacity building
A
4.Energy
EnergyEfficiency
Efficiency&&
Conservation Develop and expand the energy
4
mix and supply source
E
5.Renewable
RenewableEnergy
Energy
Develop transparent legal,
5 regulatory and technical
C 6.Regional
RegionalEnergy
EnergyPolicy
Planning
Policy&& frameworks
7. Nuclear Energy Safety in
APAEC 2009-2014
Regional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
Regional Cooperation in Energy Security Issues

‡ Increase in energy demand requires huge capital

‡ Has potential to strain governments and financial
markets
‡ Guidance and direction to effectively mobilize
resources are needed
‡ Concerted efforts and pursued collectively
equates to more and solid chances to reduce
risks of energy insecurity, economic vulnerability
and ecological imbalance
Regional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
Regional Cooperation in Energy Security Issues

COOPERATION what it is NOT

‡ Does not intend to undermine individual country’s goals and
strategies
‡ Does not advertently or inadvertently seek to beef up
readiness and competitiveness at the expense of the other

COOPERATION is
‡ continuum of distinct approaches and strategies by
individual countries, deployed at varying levels of
responsibilities, capacities and expectations yet bounded and
binded by shared goals and aspirations in pursuing a
common agenda
‡ “Energy Security and Sustainable Development for All,
Today and Beyond”
Regional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
Regional Cooperation in Energy Security Issues

New Sustainable Energy Paradigm

‡ Enhanced regional cooperation that is based on
shared visions
‡ Strengthened collaboration; energy is both a national
and regional security issue
‡ Eliminates any fear or perceived fear that cooperation
undercuts national interest or that a build up of
cooperation initiatives, mostly overlapping, already
exists

COOPERATION is EVOLUTIONARY as much as the

needs are.
Regional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
Regional Cooperation in Energy Security Issues

4 Major Areas to Reinforce Cooperation:

I. Energy Infrastructure/ Energy Trade

„ ASEAN Power Grid, Trans-ASEAN Gas Pipeline,

Trans-Asian Energy System (TAES)
„ Oil Stockpiling
„ Continued trust building to hasten energy trade
 ASEAN Power Grid
(14 power grid interconnection projects)

ASEAN Power Grid (APG) to link the electricity grids in the region to
optimize the utilization of energy resources among the member
countries.
 The Rush to Consumer Market
Economy (2nd APAEC 2004-2009)

Vertically Wholesale Full Customer

Integrated Unbundled Choice
Competition

Brunei
Thailand ?
?
Malaysia
Singapore
Cambodia Indonesia
Philippines
Lao PDR
Vietnam
Myanmar

21 10
The ASEAN Power Grid
The ASEAN Electricity Market to 2020

THAILAND LAO PDR

MYANMAR

VIETNAM

PHILIPPINES CAMBODIA
Sabah Peninsular
MALAYSIA
BRUNEI Sarawak SINGAPORE

Kalimantan Sumatra Batam

INDONESIA
Java
11
 Development of Gas Cross-Border Pipelines
Infrastructure in ASEAN Member Countries (as of 2008)
MYANMAR
LAOS
2nd
Cross border gas pipeline
Myanmar-Thailand, 1999 (470 km)
TOTAL BILATERAL
THAILAND CONNECTION
Approx 2300 km

CAMBODIA VIETNAM LNG

3rd Cross border gas pipeline
LNG
Myanmar-Thailand, 2000 (340 km)
PHILIPPINES

LNG
5th Cross border gas pipeline
West Natuna-Duyong, 2001 (100 km)
BRUNEI
MALAYSIA
7th Cross border gas pipeline DARUSSALAM
4th Cross border gas pipeline
Malaysia-Thailand JDA, 2005 (270 km) West Natuna-Singapore, 2001 (660 km)

SINGAPORE
8th Cross border gas pipeline LEGEND
1st Cross border gas pipeline
Singapore-Malaysia, 2006 (4km) Cross-Border Pipeline
Singapore-Malaysia, 1991 (5 km)
Planned Cross-Border Gas
Pipeline Interconnection
6th
Cross border gas pipeline
South Sumatra-Singapore, 2003 (470 km) 7 New Likely TAGP
INDONESIA Interconnections

(8 cross border gas pipelines interconnection Existing Gas Pipeline

Work in Progress/Planned
projects)
projects 12 Gas Pipeline
 Subregional/Regional Energy Cooperation in
Asia: Trans Asian Energy System (TAES)

ASIA North – East Asia

EurAsEC
ECNEA East Asia
GTI
ASEAN+6
South
ACD West Asia
& SAARC ASEAN APEC
Central +3
Asia ASEAN
BIMSTEC
SPECA South-
East
Asia
BIMSTEC - Bay of Bengal
ASEAN - Association of ECNEA - Energy
ACD – Asia Cooperation APEC – Asia Pacific Initiative for Multi-
Southeast Asian Cooperation in North-East
Dialogue Economic Cooperation Sectoral Technical and
Nations Asia
Economic Cooperation

SAARC - South Asian SPECA - UN Special

EurAsEC - Eurasian GTI – Greater Tumen
Association for Regional Programme for Economies .....
Economic Cooperation Initiative
Cooperation of Central Asia
Regional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
Regional Cooperation in Energy Security Issues

4 Major Areas to Reinforce Cooperation:

II. Financial Mechanisms and Regulatory

Frameworks to Attract Private Sector
„ Investment decisions directed by clear, stable
policies and rules
„ Removal of barriers to trade and regulation to
allow multinational firms to operate at the
international level
„ CDM – regional cooperation assessing best
practices and lessons learned to synergize
initiatives and boost carbon markets both as a
business investment opportunity and as a
climate change arsenal
Regional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
Regional Cooperation in Energy Security Issues

4 Major Areas to Reinforce Cooperation (cont.)

III. Capacity Building
„ Quantity and quality of the workforce involved in the
energy sector begging immediate attention
„ Shortage pushing the cost of production upwards
„ Advent of civilian nuclear power exacerbates workforce
concerns
„ Abundance of skills mismatches and shortages in key
professions (Asian Development Outlook 2008)
„ Education departments or ministries and other educational
institutions to get on board in energy planning

IV. Information Sharing and Increased Dialogues

„ Information age makes access easier also let loose variety of
dubious and low quality data
„ Sustained cooperation to ensure accurate, reliable and updated
information vital to policy and decision-making (IEA, APERC, etc)
„ Outreach to different stakeholders to erase any
misconception and misinformation and paves way for coalition
building
Regional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
Regional Cooperation in Energy Security Issues

Increasing Access to Energy and Targeting the Poor

‡ Set clear national targets to provide minimum, if not modern
energy service, to the poor under a specific time table and
bringing to the regional arena as international commitments
completes the virtuous cycle of new sustainable energy
paradigm
‡ Equal rights to energy services and equal investments
‡ Increasing poor’s access to energy to be integrated in policy
planning
‡ Specific and clear targets, mandated or otherwise, and other
interventions including short-term subsidies to entice
investors
‡ Private sector to propagate off-grid solutions or distributed
energy systems, create research innovations on alternative
fuels, and commercialize efficient technologies and best
practices
“It is time… ASEAN countries woke
up to the imperatives of ASEAN
energy cooperation.

The key security risk of ASEAN is….

its Energy Security..”
Thank You for Your
Attention