“Enhanced Energy Security for Sustainable Energy Development”

1.      The 22^nd ASEAN Ministers On Energy Meeting (AMEM) was convened on 9 June 2004, preceded by the Senior Officials Meeting On Energy (SOME) on 7 June 2004 and the 5^th SOME – METI (Japan) Consultations and the 3^rd SOME + 3 Consultations on 8 June 2004.

2.      H. E. Mr. Vincent S. Perez, Secretary of Energy of the Philippines, chaired the 22^nd AMEM, with H. E. Dr. Ith Praing, Secretary of State, Ministry of Industry, Mines and Energy of Cambodia, as Vice-Chairman.

Accelerating Energy Cooperation in the ASEAN Economic Community

3.      The Ministers recognized that growing energy demand calls for new investments in energy production and infrastructural development in order to secure adequate and affordable energy is essential to develop and promote economic development, improve human welfare, and increase living standards.

4.      The Ministers affirmed the need for closer cooperation and mutual assistance through individual or multilateral efforts for greater emergency preparedness, greater energy efficiency, diversification of types and sources of energy, and development of new energy resources to ensure energy security in view of the rapid increase in energy demand.

5.      The Ministers reaffirmed that interconnected networks of electricity grids and gas pipelines in the ASEAN region offer significant benefits both in terms of energy security, flexibility and quality of energy supply and greater competition. The Ministers called on the private sector to actively participate in carrying out these projects on a commercial basis. The Ministers agreed to work together towards creating a stable, predictable and competitive business environment in the ASEAN energy sector.

6.      The Ministers adopted the ASEAN Plan of Action for Energy Cooperation (APAEC) 2004-2009 to ensure policy and technical continuity and sustainable cooperation in the ASEAN energy sector towards closer regional economic integration. This new Plan, which supports the Energy Integration Roadmaps approved in Bali, Indonesia at the 20^th AMEM, calls for sustainable energy development, enhancing the integration of the regional energy infrastructures, promoting energy security, creating progressive policies for market reforms and liberalization, as well as addressing the environmental concerns. This APAEC 2004-2009 will explore new initiatives such as promoting bioenergy, use of marine compressed natural gas as an alternative mode for transporting gas, etc. The Ministers agreed to promote greater utilization of biodiesel and ethanol in the ASEAN region.

7.      The Ministers, in recognizing the greater use of renewable energy to address rapidly rising oil prices, agreed to increase the share of renewable energy in power generation in the ASEAN region to at least ten percent over the next six years.

8.      As ASEAN is increasingly becoming more dependent on petroleum resources outside the region, the Ministers agreed to work towards formalizing a mechanism for regional consultation and coordination during periods of petroleum shortages and emergencies in the ASEAN region. The Ministers agreed to pursue dialogue with Middle East oil producing countries to promote stability in the oil market and to promote stable and secure energy market in ASEAN.

9.      The Ministers welcomed the new organizational structure for ASEAN cooperation in the power sector. The Ministers also welcomed the initiative to carry forward cross-border power interconnection and trade, to reduce national investment in power resources to meet peak demand, to provide a more reliable supply of electricity and to improve consumers’ access to electricity. Five power interconnection projects are to be implemented over the next six years.

Expanding Cooperative Partnership

10. The Ministers acknowledged that efforts to engage ASEAN dialogue partners provide windows of opportunities to expand markets, services and investments and to undertake joint cooperation in areas of mutual interest. The Ministers agreed to take advantage of the recently agreed economic cooperation and partnerships established by the Leaders at their recent summits and thus to engage their counterparts from China, Japan and Korea and with India.

11. The Ministers noted the substantive progress of ASEAN cooperation with the Plus Three Countries (China, Japan and the Republic of Korea). The Ministers called on greater participation and involvement of related private sector and business organizations in the ASEAN+3 energy programs and activities.

12. The Ministers were pleased with the continued institutional and human capacity building activities under the ASEAN and Ministry of Economy, Trade and Industry (METI) of Japan’s energy cooperation program through the “Promotion of Energy” Efficiency and Conservation (PROMEEC)” and “Energy Supply Security Planning in ASEAN (ESSPA)” Projects. These projects have contributed significantly in enhancing ASEAN energy security database management systems as well as in fostering best practices, systems and procedures for efficient energy management for buildings and industries in the ASEAN countries.

13. The Ministers noted the progress of the EC-ASEAN Energy Facility (EAEF) which is currently supporting a total of 31 projects with total co-financing of Euro 6.5 million. The facility covers electricity, natural gas, clean coal technology, energy efficiency and conservation and renewable energy. For 2005, an additional 27 projects involving a total co-financing of Euro 6.5 million will be implemented.

Progress on the ASEAN Plan of Action for Energy Cooperation 1999-2004

14. The Ministers acknowledged the significant progress made in the implementation of the ASEAN plan of Action for Energy Cooperation (APAEC) 1999 – 2004. The European Union, Japan, Germany, Australia, and Switzerland and international organizations such as United Nations Economic and Social Commission for ASIA and the Pacific (UN ESCAP), International Energy Agency (IEA), Asia Pacific Energy Research Centre (APERC) and the Copper Development Centre (CDC) continued to provide technical assistance and support to ASEAN energy programs and activities in 2003-2004.

15. The Ministers commended the ASEAN Centre for Energy (ACE) for its continued leadership in the initiation, coordination and facilitation of regional energy programs and activities. ACE continued to play a key role in ASEAN energy cooperation within and among ASEAN member countries and with its partners. The Ministers congratulated Rd. Guillermo R. Balce from the Philippines for the successful completion of his five-year term as ACE Executive Director, and welcomed his successor, Dr. Weerawat Chantanakome of Thailand.

16. The Ministers congratulated the Winners and Runners-Up of the 2004 ASEAN Energy Awards for Best Practices Competitions for Energy Efficient Buildings and for Renewable Energy Projects. This annual event is to promote excellence in the energy field by giving recognition to the efforts of both the private and public sectors in adopting good practices in energy efficiency and conservation and renewable energy.

17. The Ministers also congratulated the Philippines for winning the 2003 Energy Globe Awards for Sustainability in Vienna, Austria through its Solar Homes Distribution Project. The Award is given to best practice projects from all over the world, which contribute to protect the four basic elements of life and to protect our planet. The Ministers encouraged all ASEAN Member Countries to participate in this annual event.

23^rd AMEM Meeting and Associated Meetings

18. The ASEAN Ministers on Energy will meet for the 23^rd AMEM in Cambodia in early July 2005. The Sixth ASEAN Energy Business Forum (AEBF) will also be held in conjunction with the 23^rd AMEM.

The following Ministers attended the 22^nd AMEM in Makati City, Metro Manila:

H.E. PEHIN DATO ABDUL RAHMAN TAIB

Minister of Industry and Primary Resources, Brunei Darussalam

H.E. DR. ITH PRAING

Secretary of State, Ministry of Industry, Mines and Energy, Cambodia

H.E. MR. A.E. ALEXANDER LATURIUW

Charge D’ Affaires, Embassy of Republic of Indonesia

H.E. MR. ONNEAU PHOMMACHANH

Minister of Industry and Handicrafts, Lao PDR

H.E. DATO’ SERI DR. LIM KENG YAIK

Minister of Energy, Water and Communications, Malaysia

H.E. BRIG. GEN. THAN HTAY

Deputy Minister of Energy, Myanmar

H.E. MR. VINCENT S. PEREZ

Secretary of Energy, Philippines

H.E. DR. VIVIAN BALAKRISHNAN

Minister of State for National Development and Trade & Industry, Singapore

H.E. DR. PROMMIN LERTSURIDEJ

Minister of Energy, Thailand

H.E. MR. BUI XUAN KHU

Standing Vice Minister of Industry, Viet Nam

H.E. MR. ONG KENG YONG

Secretary-General of ASEAN