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

1. Beyond Barriers of Energy Cooperation in Northeast Asia: Links to Southeast Asia By Guillermo R. Balce, D. Sc. ASEAN Centre for Energy For presentation at the International Seminar on Northeast Asia Energy Cooperation; 18 October 2002; Seoul, Korea

2. 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.

3. Map of ASEAN Power Grid ASEAN POWER GRID

4. 2000 1990 1980 1970 1960 Development of ASEAN Cooperation for APG ASEAN POWER GRID Completion of APG Master Plan by AIMS–WG ( projected 2003 ) 2nd Meeting of the Trans-Borneo Power Grid Interconnection (June 2002) 1st Meeting on Trans – Borneo Power interconnection (August, 2001) Establishment of AIMS – WG under HAPUA ( May, 2000 ) Policy Statement on Regional Power Trade endorsed by GMS Ministers ( January, 2000) 2000 Power Trade Strategy for GMS by WB ( 1999 ) GMS Integrated Transmission System Study by MRC ( 1996 ) 1990 ( 1985 ) P. Malaysia – Singapore Interconnection Commissioned P. Malaysia – Thailand Interconnection Commissioned (1981) (1982) HAPUA Electricity Interconnection Program Commencement Establishment of HAPUA (1981) 1980 (1978) Thailand–Malaysia–Singapore Power Exchange Agreement 1970 ( 1966 ) Lao PDR – Thailand Power Exchange Agreement 1960

5. Link with Northeast Asia ASEAN POWER GRID Participation of Yunnan Province of China in GMS Power Interconnection and Trade Programme Greater Mekong Sub-Region Interconnection Plan

6. Map of TAGP TRANS-ASEAN GAS PIPELINE

7. Development of ASEAN Cooperation for TAGP TRANS-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

8. Gas pipeline interconnection plan with Southern China TRANS-ASEAN GAS PIPELINE

9. Indonesia’s Integrated Gas Transmission Plan TRANS-ASEAN GAS PIPELINE

10. Towards NE Asia – SE Asia Cooperation Current Institutional Linkages • GMS Power Trade Agreement • ASEAN + 3 • ASEAN – Japan • ASEAN – Korea • APEC • IEA • Kyoto Protocol • Others including bilateral arrangements

11. Oil Trade Flows Energy Security Concern between NE Asia & SE Asia Chokepoints for Oil & Gas Trade Flow

12. 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.

13. Thank You ASEAN Centre for Energy, 2002