Asean upsets more vulnerable to energy supply

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Asean upsets more vulnerable to energy supply
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BANDAR SERI BEGAWAN -- Asean is now more vulnerable to energy supply disturbances as the region sources more of its supply outside the bloc, an executive yesterday said.

Dr Pailin Chuchottaworn, president and CEO of Thailand's PTT Public Co Ltd, said that as one of the fastest growing region in the world, Asean would require more energy to keep up with its rapid pace of economic expansion.

"Asean's economic growth still performs greater than many other countries in the world. Unfortunately, that growth is mainly a result of the region's very high energy consumption," he said in his presentation on the region's oil and gas outlook at the 29th Asean Ministers on Energy Meeting Tuesday.

He said that most Asean countries are net oil importers, with eight out of the 10 countries depending on crude imports. "So we can see that Asean is becoming more dependent on petroleum resources outside the region, making Asean more vulnerable to disturbances in energy supply."

Most Asean countries are highly dependent on oil import more than ever, with a projected 315,786 kilotonne of oil equivalent by 2030, he said.

"Our consumption of energy in the next 15 to 20 years will be doubled, yet we have very limited reserve," he said, noting that Asean's oil production would keep declining towards 2030, as well as gas production in the near future.

Dr Chuchottaworn addressed the need for Asean countries to improve its energy efficiency in order to use valuable resources wisely, and that members should start embracing market economy by being competitive if they wish to achieve the Asean Economic Community in 2015. Improving energy efficiency is the best way to ensure energy security, limit greenhouse gas emissions, and insulate economies from the volatility of energy prices, he added.

He said Asean countries also need to more away from protectionism and reduce subsidies to the sector.

He pressed member countries to promote renewable energy, such as biofuel, solar, wind power and geothermal.