ASCOPE, RP set to sign pact on Trans-Asean gas pipeline

The ASEAN Council on Petroleum (ASCOPE) and the state-owned Philippine National Oil Co. (PNOC) are expected to sign in the first quarter of 2002, a memorandum of agreement (MOA) for the involvement of the Philippine government in the proposed Trans-ASEAN gas pipeline.

"A MOA will be signed for this purpose. We all agreed that we should participate and expedite the implementation of the trans-ASEAN gas pipeline (TAGP)," Energy Secretary Vincent S. Perez said.

The gas pipeline, the energy chief said, would significantly enhance economic integration in ASEAN.

In the recent ASEAN Ministers of Energy Meeting (AMEM), the energy leaders underscored the importance of developing master plans for the power grid and gas pipeline projects, accelerating international and local finance and capital to bring these projects to reality.

A TAGP Task Force, Perez said, has been organized in November 1999 under the ASCOPE. An ASEAN Interconnection Masterplan Study (AIMS) Working group has also been formed in April 2000.

The development of natural gas is accorded high priority to meet the energy needs of the ASEAN region. In the Philippines, the Malampaya Deep-Water-to-Gas Project would start commissioning by October this year. Thus, the need to develop the TAGP would be necessary.

It was pointed out in recent AMEM that there is a need to synergize the gas pipeline development with the power developments plans of ASEAN member countries and to integrate the national gas systems with the regional network.

The TAGP is being pursued on an evolutionary process of stepwise integration of the national gas pipeline infrastructure projects among the ASEAN member-countries, to ensure greater energy supply security in the region.

The initial draft of the TAGP masterplan study was completed in October 2000 and will be finalized in 2001.

The TAGP task force identified seven new possible gas interconnections involving 4,200 kilometers with total investments of $7 billion.

Cross-border addressed by the task force include energy/gas market reserves, supply and demand; economic feasibility and energy/gas pricing; technical, scheduling and gas pipeline and power grids routing; and institutional legal, financial/commercial and management frameworks.

Total existing pipelines is about 8,200 km and those in progress could add an additional 6,000 km include: Peninsular (Malaysia) gas utilization project; Malaysia/Singapore export pipeline; Yadana/Yetagun export pipeline from Myanmar to Thailand, Malampaya Camago, Batangas pipeline in the Philippines; Sumatra/Java; and Joint Development Area (JDA) Malaysia/Thailand, Vietnam and Indonesia.

The masterplanning on ASEAN natural gas development and utilization was first mooted in 1991. The study was undertaken sometime in 1994, and was completed in 1996, with technical assistance from the European Commission.