LANGKAWI, July 1: The 10 member countries of the Association of Southeast Asian Nations (Asean) will have to intensify efforts to reduce their dependence on oil since the region will become a net energy importer by 2020, an expert said Tuesday.
Guillermo R. Balce, executive director of the Jakarta-based Asean Centre for Energy, said that energy demand from Asean members outpaced their economic growth.
In terms of energy demand, most countries experience five to eight percent growth in energy demand compared to average economic growth of four to five per cent, he told reporters.
Balce on Monday presented a paper to some 120 Asean energy officials on the regional energy outlook.
The two-day meeting is held ahead of the Asean ministers meeting Thursday.
Asean energy officials would also meet their counterparts from China, Japan and South Korea on Wednesday to discuss on energy security.
Asean needs to move forward to greater dependence on renewable energy resources such as hydro, wind, solar and bio-mas to ensure energy security, he said.
Balce lamented that usage of such energy in the region was only 8.2 per cent at present and that it had to increased to more than 12 per cent in 2020.
Most of the Asean countries are net energy importers. By 2020, we expect all the countries to be net importers, including Malaysia, Indonesia and Brunei, he said.
Currently, major importers are: Singapore, Thailand and Philippines. Asean imports 60 per cent of its oil needs from the Middle East.
Balce warned that if Asean fails to meet its energy demand, then the economies can falter.
We will face energy shortage. Industries will be affected. Cars will be queing up to fill up their tanks. It will hamper growth, he said.
Balce said Asean must be on guard against any geo-political distability even though the recent Iraq war did not hurt the region.
Of course we are very much concern about energy security and Asean is preparing for that, he said.
Balce said the trans-Asean gas pipeline project and the Asean power grid project were the regions’ long-term plan to ensure energy security.
We have to enhance energy infrastructure as a solution to ensure security. Of course we must speed up the programme, he said.
Referring to the stalled Malaysia-Thailand gas pipeline, Balce said, Asean countries must address cross border relations as soon as possible.—AFP































