Petronas official urges joint ventures to fast-track trans-Asean gas pipeline

The members of the Association of Southeast Asian Nation (ASEAN) are being urged to establish more joint ventures with each other to fast-track the realization of the trans-ASEAN pipeline.

"They (ASEAN members) should seek cooperation and forge more joint venture agreements," said Mohd Farid, Petronas senior official for corporate planning and development.

Farid is one of the chairmen of the ASEAN Council on Petroleum (ASCOPE) and lead coordinator of the trans-ASEAN gas pipeline task force.

According to Farid, the gas pipeline is now taking shape and this will require greater cooperation among the Asian countries.

"We should cooperate so that we could realize the gas pipeline faster," the Petronas executive said.

In the Philippines, the Department of Energy (DOE) is starting to negotiate for the implementation of the proposed synchronization of the gas pipeline development in the ASEAN region.

Energy Secretary Vincent S. Perez said discussions on a region-wide gas pipeline were part of the recent 19th ASEAN Ministers on Energy Meeting (AMEM) in Bandar Seri Begawan, Brunei.

Countries that participated in the meeting were Cambodia, Brunei Darussalam, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, and Vietnam.

According to Perez, the AMEM also discussed security and sustainability of energy supply, efficient utilization of natural energy and rational management of energy demand in the region.

"The discussions were focused on the strategic options and measures for further enhance the implementation of the proposed synchronization of the gas pipeline development with the power development plans of ASEAN member countries and the integration of national gas systems with the regional network," Perez said.

Perez noted that a 2,540-kilometer of cross-order pipeline is now been in place between Malaysia and Singapore, Myanmar and Thailand, and Indonesia and Singapore.

He said the first gas to travel through a $1.5-billion, 640-kilometer pipeline went from Indonesia to Singapore in January of this year. "The challenge is awesome and we are building the capacity, the sensitivity and the sensibility to strengthen our technical ability based on the principles of sustainable development and global competitiveness," he said.

Perez said DOE is still in the process of drafting the set of rules and regulations in relation to the interconnection of gas pipeline.

He added that they are looking at the details of pipeline construction, operation and maintenance as well as pricing of gas commodity and transport via the proposed Malampaya-Camago natural gas pipeline and eventually the trans-ASEAN gas pipeline.

The energy secretary said the draft rules and regulations will be presented to the public through regional consultations in the coming months. "A final draft is expected by the end of the year or early next year," he said.