Alternative energy news - Asean set for deal on oil reserves

Asean energy ministers will later this year sign an accord on creating oil reserves for an emergency to build energy security given the high consumption rate in the region plus China, Japan and South Korea, said Asean Secretary-General Surin Phitsuwan.
"The reserves are necessary due to high energy consumption. Over 80 per cent of imports come from the Middle East. energy cooperation would strengthen Asean's energy strategy and bargaining power," he said yesterday as the 26th Asean energy Ministers' Meeting came to an end.
To be considered is where the oil would be stocked. Thailand's Land Bridge project in the South is seen as a possible location.
Surin said that to become an Asean Community by 2015 as planned, further energy integration is vital so that each member can help others, and that will pave the way for shaping economic policies.
So far, there has been a power grid and the linkage of natural-gas pipelines. Indonesia also opened its door for the Natuna gas field, and pipelines are to be built to ship the gas from the field to other Asean countries.
He said Japan is also lending help in boosting energy efficiency in the region.
Asean is expected to consume 400 million tonnes of crude oil equivalent in 2020, compared to 265 million tonnes in 2000.
At the meeting, Thailand showed its prowess in alternative fuel development and pushed to turn Asean into the ethanol production and exporting hub. Thailand's energy Minister Poonpirom Liptapanlop said this requires cooperation from other member countries.
Bangchak Petroleum president Anusorn Sangnimnuan said Thailand has the potential to become the ethanol export hub in Asean, due to its proximity to the region compared to Brazil, which is now the world's largest ethanol producer.
Anusorn said that as several countries are considering importing ethanol, which is cheaper than oil and environment-friendly, Thailand has the potential to produce ethanol, and can compete with Brazil in terms of transportation cost. Japan and Korea's ethanol demand is 2-3 million litres per day.
At present, Thailand can produce 1.5 million litres per day, and will increase to 2.5 million litres per day by the end of this year, said Anusorn.

"If we can develop our country as the ethanol production and export hub in Asia, we believe that Thailand will be the retail ethanol price reference in the region, which will replace Brazil," he said. To achieve the goal, oil retailers should be allowed to export ethanol aside from ethanol producers.
About 10 members of Greenpeace Southeast Asia Thailand yesterday submitted a letter to the Asean ministers asking the grouping to boost alternative energy production to 40 per cent of total consumption in 2020. They also asked all countries to stop construction plans for nuclear and coal-fired power plants to reduce environmental problems.
They said Asean must pay more attention to alternative fuel given that its greenhouse gas emissions are on the rise and lags behind only China and India.

Alternative energy news
by The Nation
Published on August 8, 2008