Asean needs $100-B investments in energy sector over next 5 yrs

The Association of Southeast Asian Nations (ASEAN) region will need over $100 billion in new investments in the power sector over the next five years to be able to meet their respective growing energy demand, an international trade official said.

ASEAN secretary-general Ong Keng Yong said the energy and power sectors will fuel growth in the region. The figure, he said, was based on the energy action plan of the region for 2005-2010.

Ong said the region would need about $7 billion in fresh capital to expand the region’s gas pipeline networks.

According to Ong, investment in the gas pipeline is necessary with the growing demand for natural gas development in the region.

"Everyone in the energy sector should chip in and make the investments within the cooperative areas of ASEAN," Ong said.

For his part, World Energy Council chairman Antonio del Rosario pointed out that the regional power sectors must fasttrack energy-generation projects to cope with the projected energy demand, which will increase faster than economies.

"These new investments will make sure that the delivery of energy is working, especially oil and gas," Del Rosario said. WEC is the world’s largest non-governmental forum on energy.

The power sectors of the region recognized that growing energy demand calls for new investments in energy production and infrastructural development in order to secure adequate and stable supply of energy. There is also a need for adequate and affordable energy, which is essential to develop and promote economic development.

ASEAN Center for Energy executive director Guillermo Balce said world demand for energy over a 30-year period will need $16.48 trillion or an annual investment of $549 billion.

Of this, he said the Philippines will need $7.54 to $10.26 billion for 2000 to 2010 and $33.27 billion to $41.21 billion from 2000-2020.

Based on long-term estimates, ASEAN energy investments would reach $176 billion within the said period.