ByGuillermo R. Balce, D. Sc.ASEAN Centre for Energy

For presentation at the International Seminar on Northeast Asia Energy Cooperation; 18 October 2002; Seoul, Korea

Beyond Barriers of Energy Cooperation in Northeast Asia: Links to Southeast Asia

Introduction

• Energy cooperation among neighboring countries is motivated primarily by common concerns. In Southeast Asia, the common concerns are oil security and energy market access. These two factors cement the bond between net oil importing countries and net oil exporting countries in the ASEAN towards creating regional energy programmes. Two major energy infrastructure programmes have commenced in 1999 upon the mandate of the ASEAN Heads of Government under the ASEAN Vision 2020 issued in 1997. These programmes are the Trans-ASEAN Gas Pipeline (TAGP) and the ASEAN Power Grid (APG).

• It is most likely that oil security and energy market access are also common to Northeast Asian countries. Therefore, energy cooperation could as well focus on gas pipeline and power grid.

Map of ASEAN Power GridASEAN POWER GRID

Development of ASEAN Cooperation for APG

1960

2000

1990

1980

1970

(1978) Thailand–Malaysia–Singapore Power Exchange Agreement

GMS Integrated Transmission System Study by MRC ( 1996 )

Establishment of AIMS – WG under HAPUA ( May, 2000 ) Policy Statement on Regional Power Trade endorsed by GMS Ministers ( January, 2000)

( 1985 ) P. Malaysia – Singapore Interconnection Commissioned

P. Malaysia – Thailand Interconnection Commissioned (1981)

Establishment of HAPUA (1981)(1982) HAPUA Electricity Interconnection Program Commencement

Power Trade Strategy for GMS by WB ( 1999 )

Completion of APG Master Plan by AIMS–WG ( projected 2003 )

( 1966 ) Lao PDR – Thailand Power Exchange Agreement

1960

2000

1990

1980

1970

2nd Meeting of the Trans-Borneo Power Grid Interconnection (June 2002)1st Meeting on Trans – Borneo Power interconnection (August, 2001)

ASEAN POWER GRID

Link with Northeast AsiaParticipation of Yunnan Province of China in GMS Power

Interconnection and Trade Programme

ASEAN POWER GRID

Greater Mekong Sub-Region Interconnection Plan

Map of TAGPTRANS-ASEAN GAS PIPELINE

• 1988-1990 : ASEAN Council on Petroleum’s (ASCOPE) study on the “Potential of Natural Gas Pipeline Connection in the

ASEAN Region”

• 1993-1996 : Master plan on Natural Gas Development and Utilisation in the ASEAN Region under the ASEAN-EC Energy

Management Training and Research Centre (AEEMTRC) conducted by European Companies SNAM, Gaz de

France and Trans Energ

• 1 July 1996 : Master plan Report endorsed by the 14th ASEAN Ministers of Energy Meeting

• 15 Dec 1997 : ASEAN Vision 2020

• 16 Dec 1998 : Hanoi Plan of Action

• Early 1999 : ASEAN Council on Petroleum (ASCOPE) created the Trans- ASEAN Gas Pipeline Task Force (TAGP-TF) led by Malaysia

• 1 July 1999 : ASEAN Plan of Action for Energy Cooperation 1999-2004

• 14 Feb 2001 : ASCOPE TAGP-TF completed a new masterplan on Trans- ASEAN Gas Pipeline and proposed an ASEAN MOU on TAGP

• 5 July 2002 : 20th AMEM signed ASEAN MOU on TAGP

TRANS-ASEAN GAS PIPELINE

Development of ASEAN Cooperation for TAGP

TRANS-ASEAN GAS PIPELINE

Gas pipeline interconnection plan with Southern China

TRANS-ASEAN GAS PIPELINE

Indonesia’s Integrated Gas Transmission Plan

Towards NE Asia – SE Asia Cooperation

• GMS Power Trade Agreement

• ASEAN + 3

• ASEAN – Japan

• ASEAN – Korea

• APEC

• IEA

• Kyoto Protocol

• Others including bilateral arrangements

Current Institutional Linkages

Oil Trade Flows

Chokepoints for Oil Chokepoints for Oil & Gas Trade Flow& Gas Trade Flow

Energy Security Concern between NE Asia & SE Asia

Conclusion

Beyond the barriers, energy security

and market access concerns are

bonding elements for NE Asia energy

cooperation as well as between NE

Asia and SE Asia.

Thank You

ASEAN Centre for Energy, 2002