Greater collaboration within ASEAN will be needed to ensure the region’s future energy security.

So say policy makers, who have expressed an urgency in the matter, with energy consumption expected to double by 2030.

They added that this is a pressing issue, with most ASEAN countries dependent on energy imports.

With ASEAN countries among the fastest growing economies in the world, new and more diverse sources of energy are needed to keep pace with demand.

Already, many countries like Singapore, Malaysia and Thailand are turning to liquefied natural gas (LNG) to fire their power stations, as an alternative to coal.

The development of the LNG market is likely to create opportunities for greater regional cooperation.

Mr S Iswaran, Singapore’s Second Minister for Trade and Industry, said: “The nature of these contracts is usually long-term, but if there’s increasing elements like shorter-term contracts, maybe the evolution of a spot market, and also perhaps in the LNG contracts greater destination flexibility options… We also have the flexibility to create maybe a secondary market in this, to meet some short-term needs amongst our countries.”

Another area of potential for regional cooperation lies in the cross-border trading of energy.

Currently there are agreements between nations like Malaysia and Singapore for natural gas, and Laos and Thailand for hydropower.

While it’s hoped that more bilateral agreements will help pave the way for a wider regional power grid, there are issues that will first have to be resolved.

Dato’ Sri Idris Jala, Minister in Prime Minister’s Office, Malaysia, said: “There are pricing issues, because we start at different positions. For example, for Singapore pricing is already at market (level). In Malaysia our pricing is below the market, so there’s a lot of transition issues that need to be dealt with, making sure that the prices are aligned.”

A top concern for countries is making sure they can secure enough energy for their economic development while ensuring that it’s environmentally sustainable.

And one way to do this, is to focus on energy efficiency, which can include a focus on alternative energy, or reviewing subsidies to optimise energy consumption.

Source: CNA