PROGRAMME AREA NO. 2: Trans-ASEAN Gas Pipeline (TAGP)

There had been significant increase in the number of gas pipelines in the ASEAN with total built pipelines of about 5,565 km. while some 7,000 km of pipeline length are in the planning stages. ASEAN's domestic consumption of natural gas reached 42 million tons of oil equivalent, 71% of which was used for power generation. From the period 1986-1996, gas consumption grew on the average of about 15%.

The Masterplan Study on Natural Gas Development and Utilisation in ASEAN made by AEEMTRC in 1997, projected that the demand for natural gas will reach between 11.3 billion cubic meters per year (BCMY) to 12.8 BCMY in the year 2000. This will further increase to between 38 BCMY and 69 BCMY in the year 2020. Upon completion of the TAGP, the region's dependence on imported energy can be reduced substantially, and a shift from coal and petroleum will serve to avoid emission problems.

Objective

To formulate strategies and plan of action for the implementation and realization of the "Trans-ASEAN Gas Pipeline Infrastructure Project" with a view to ensuring greater security of gas supply.

Strategies and Actions

The following strategies and corresponding plan of action provide the platform for the implementation and realisation of the TAGP.

2.1 Establish the ASCOPE TAGP Task Force

2.1.1 Operationalise the Task Force within the framework of ASCOPE.

2.2 Formulate a Masterplan for the "Trans-ASEAN Gas Pipeline Infrastructure Project"

Despite the "Masterplan for the Development and utilization of Natural Gas in the ASEAN Region" produced by AEEMTRC in 1997, there is a need to reformulate the masterplan based on updated economic data, energy supply and demand scenario and on the plans of the stakeholders such as the National Oil Companies, the energy authorities of the respective ASEAN countries and the owners of the natural gas reserves and facilities concerned. This strategy calls for the following action:

2.2.1 Review and update AEEMTRC's "Masterplan for the Development and Utilisation of Natural Gas in the ASEAN Region"

2.2.2 Formulate Masterplan for the most likely scenario for the short-term development of the "Trans-ASEAN Gas Pipeline Infrastructure Project"

2.3 Facilitate the Undertaking of Conceptual Project Feasibility StudyConceptual project feasibility studies of gas pipeline interconnection projects across national borders are required as an initial step towards the implementation of proposed interconnections. The conceptual feasibility studies may be facilitated through mechanisms available to ASEAN as and when necessary. The corresponding action is as follows:

2.3.1 Incorporate and align the existing and planned gas infrastructure as an integral part of the "Trans-ASEAN Gas Pipeline Infrastructure Project".

2.3.2 Consult gas owners/PSC contractors on the feasibility and implementation schedule of gas pipeline projects already identified or planned such as the following:

1. Malaysia-Thailand JDA to Malaysia and Thailand Gas Pipelines.

2. Indonesia (West Natuna and Sumatra)–Singapore Gas Pipeline

3. Myanmar (Yadana) – Thailand Gas Pipeline

4. Myanmar (Yetagun) – Thailand Gas Pipeline

5. Sabah, Malaysia - Palawan, Philippines Gas Pipeline

2.4 Identify and Address Issues Relating to Institutional, Legal, Financial / Commercial, Technical, HSE (health, safety and environment) and Management

This strategy is crucial to the acceptability of the interconnection projects by the governments concerned and the general public. The action required during the next six years are as follows:

2.4.1 Identify key issues relating to institutional, legal, financial / commercial, technical, HSE and management of the "Trans-ASEAN Gas Pipeline Infrastructure Project".

2.4.2 Relevant authorities to address and act on recommended key issues

2.5 Facilitate the Implementation and Realisation of the "Trans-ASEAN Gas Pipeline Infrastructure Project"

This strategy presupposes the readiness for implementation of certain aspects or segments of the TAGP. Action is therefore required to:

2.5.1 Encourage and facilitate discussions between gas producers/suppliers and consumers with a view of concluding relevant agreements.