Part 3The following partner country profile is an excerpt from Chapter 5 of the publication Energy Supply Security 2014 and is not intended as a stand-alone publication.

ENERGY SUPPLY SECURITY 2014

CHAPTER 5: Emergency response systems of individual IEA partner countries

Recognising that oil consumption and net imports in some non-member IEA economies are increasing rapidly, the IEA promotes dialogue and information-sharing on oil security policies; it also shares information and experience about creating national emergency oil stocks with key transition and emerging economies, such as China, India and the countries of the Association of Southeast Asian Nations (ASEAN). Expanding international co-operation with all players in global energy markets to improve market transparency through the collection of more accurate and timely data is also a critical component of the work of the IEA towards greater energy security.

This chapter provides a profile of the emergency response systems of China and India, countries belonging to ASEAN and a detailed overview of Chile, an IEA candidate country. As in the previous chapter, much information in this chapter is based on Emergency Response Assessments (ERAs) or reviews conducted in several of the countries represented: notably Thailand (2010), Chile (2011) and India (2013).

The profiles are presented in the following general sequence, subject to the availability of data in particular cases:

Key dataKey oil data, 1990-2018Key natural gas data, 1990-2018Total primary energy source trend, 1973–2012

Infrastructure map

Country/regional overview

OILMarket features and key issuesDomestic oil productionOil demandImports/exports and import dependencyOil company operations

Oil supply infrastructureRefiningPorts and pipelinesStorage capacity

Decision-making structure

StocksStockholding structureCrude or productsLocation and availabilityMonitoring and non-compliance

Stock drawdown and timeframeFinancing and fees

Other measuresDemand restraintFuel switchingOther

GASMarket features and key issuesGas production and reservesGas demandGas import dependencyPorts and pipelinesStorage

Emergency policyEmergency response measures

EnERgy SuPPly SECuRITy 2014 502 © O

ECD/

IEA

2014

Association of Southeast Asian Nations (ASEAN)

Key data

Table 5.1.1 Key oil data

1990 2000 2005 2010 2011 2012 2018*

Production (kb/d) 2 441 2 844 2 811 2 657 2 567 2 554 2 436

Demand (kb/d) 2 140 3 670 4 428 5 422 5 666 5 827 6 737

Net imports (kb/d) - 301 826 1 617 2 765 3 099 3 273 4 301

Import dependency (%) - 14 23 37 51 55 56 64

Oil in TPES** (%) 38 40 38 36 37 - -

* Forecast. ** TPES data for 2012 are estimates.

Table 5.1.2 Key natural gas data

1990 2000 2005 2010 2011 2012* 2018**

Production (mcm/y) 81 587 154 208 192 435 203 370 203 370 201 786 226 000

Demand (mcm/y) 33 463 84 654 120 724 143 382 143 382 148 742 184 000

Net imports (mcm/y) - 48 124 - 69 554 - 71 711 - 59 988 - 59 988 - 53 044 - 42 000

Import dependency (%) - 144 - 82 - 59 - 42 - 42 - 36 - 23

Natural gas in TPES (%) 13 19 22 22 21 - -

* 2012 data are estimates. ** Forecast.

Note: This section on ASEAN was written by the IEA, based on public information, IEA statistics, press reports and reports from various energy analysts, and does not represent the official view of the ASEAN governments. All errors and omissions are solely the responsibility of the IEA.

© O

ECD/

IEA

2014

Figure 5.1.1 Total primary energy source (TPES) trend, 1973-2012

0

100 000

200 000

300 000

400 000

500 000

600 000

1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

ktoe

Hydro/renewables/other

Nuclear

Natural gas

Oil

Coal

Note: unless otherwise indicated, all tables and figures in this chapter derive from IEA data and analysis.

CHAPTER 5 Emergency response systems of IEA partner countries ASEAn 503

EnERgy SuPPly SECuRITy 2014 504 © O

ECD/

IEA

2014

Balo

ngan

Ja

ka

rta

Dili

Ma

nila

Ba

nd

ar

SeriB

eg

aw

an

Cib

ero

n

Pole

ng

Sura

baya

Lim

ay

Subic

Bay

Sanya

Bata

ngas/

Tabangao

Senip

ha

Manado

Kasi

mM

utu

ri

Ara

ndai

Sala

wati

Bin

tulu

Labuan

Isl.

Law

iLa

wi

Bonta

ng/S

anta

n

Cepu

Balikpapan

Sum

atra

Java

Born

eo

Kalim

anta

n

Leyte

Cebu

Luzon

Hain

an

(Chin

a)

Sara

wak

(Ma

laysia

)

Bali

Tim

or

Flo

res

Iria

nJa

ya

Lum

ut

Kert

eh

Bru

nei

Ea

st

Tim

or

Ma

laysia

Ca

mb

od

ia

Th

aila

nd

La

oP

DR

Mya

nm

ar

Vie

tna

m

Sin

ga

pore

Ph

ilip

pin

es

In

do

ne

si

a

Ku

ala

Lu

mp

ur

Ba

ng

kok

Ya

ng

on

Vie

nti

an

e

Ph

nom

Pen

h

Natu

na

Aru

n

Rayo

ng

Sri

Rach

a

Thanly

n

Thanbaya

kan

Dung

Quat

Lafe

ng

Pale

mbang

Pla

ju/S

ungeig

eru

ng

Sungais

ala

k

Vung

tau

Ho

Chi

Min

hC

ityB

aRia

Kuala

Beukah

Pro

me

Vin

h

Malu

n

Pangkala

nBra

ndan

Dum

ai

SungaiPaknin

g

Musi

Cilaca

p

Pt.

Dic

kso

nM

ela

ka

Pacific

Ocean

Philip

pin

eSea

South

Chin

a

Sea

Sulu

Sea

Cele

bes

Sea

Molu

cca

Sea

Banda

Sea

Java

Sea

Natu

na

Sea

Andam

an

Sea

Gulf

of

Thailand

Con

Son

Basin

Cru

de

oil

pip

eline

Refinery

Majo

roil

field

Tanker

term

inal

0900

Km

450

This

map

isw

ithout

pre

judic

eto

the

statu

sofor

sove

reig

nty

ove

rany

terr

itory

,to

the

del

imita

tion

ofin

tern

atio

nalf

ront

iers

and

boun

daries

and

toth

ena

me

ofany

terr

itory

,ci

tyor

are

a.

M

ap 5

.1.1

Oi

l inf

rast

ruct

ure

of A

SEAN

© O

ECD/

IEA

2014

This map is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

Son

My

Mur

phy

FLN

G Bont

ang

Don

ggi-

Seno

ro

Seng

kang

Tang

guh

LNG

*

Wes

tJav

aFS

RU

Leka

sM

LNG

*Ka

now

itFL

NG

Aru

n

Thi V

aiBi

nTh

uan

Aba

diFL

NG

Juro

ngIs

land

*

Peng

eran

g

Bata

ngas

FSRU

Que

zon

EA

ST

TIM

OR

Kalim

anta

n

Lam

pung

FSRU

Laha

dD

atu

Cen

tral

Java

Bant

en

Dili

Sum

atra

Sula

wes

i

Papu

a

Map

TaPh

ut*

MA

LA

YS

IA

SIN

GA

PORE

CA

MB

OD

IA

LA

OP

DR

MYA

NM

AR

Phno

mPe

nh

Vie

ntia

ne

Yang

on

Man

ila

Kual

aLu

mpu

r

IN

DO

NE

SI

A

Jaka

rta

Han

oi

CH

INA

IND

IA

VIE

TN

AM

PH

ILIP

PIN

ES

TH

AIL

AN

D

BR

UN

EI

Exi

stin

g

Pla

nned

Under

const

ruct

ion

LNG

liq

uefa

ctio

np

lan

t

Exi

stin

g

Under

const

ruct

ion

Pla

nned

Exi

stin

ggas

pip

eline

LNG

reg

asi

fica

tion

term

inal

Brun

eiLN

G

Rota

nFL

NG

Bang

kok

M

ap 5

.1.2

Ga

s in

frast

ruct

ure

of A

SEAN

CHAPTER 5 Emergency response systems of IEA partner countries ASEAn 505

EnERgy SuPPly SECuRITy 2014 506 © O

ECD/

IEA

2014

Regional overview The Association of Southeast Asian Nations (ASEAN) is a geopolitical and economic organisation of countries located in Southeast Asia, which was founded in 1967. ASEAN includes ten member states: Brunei Darussalam, Cambodia, Indonesia, The Lao People’s Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Nam. The aims of ASEAN are the acceleration of economic growth, social progress, cultural development and energy security. Although some ASEAN member states are net oil exporters and others are net oil importers, all member states recognise the importance of energy security for their economic growth.

The TPES of ASEAN was over 560 million tonnes of oil equivalent (Mtoe) in 2011, or 4.3% of global demand. Oil remains the dominant fuel with a 37% share in the primary energy mix. Natural gas is second at 21% of the TPES, while ASEAN coal use has been rising at double-digit rates since 1990, tripling its share of the energy mix to 16%.

Southeast Asia is a mature oil-producing region, with most countries facing the decline of their large mature oil fields and having limited large new prospects. While regional oil production was around 2.6 million barrels per day (mb/d) in 2012, it is estimated that in the long term the region’s output is declining slowly, dropping to 2.4 mb/d in 2018 and 1.7 mb/d in 2035. On the other hand, supported by its strong economic and population growth, the region’s oil demand is estimated to rise progressively from 5.7 mb/d in 2012 to 6.7 mb/d in 2018.

In response to sharply growing oil demand and import dependence, ASEAN countries have been developing various national energy policies and programmes. While most ASEAN countries rely on industry stockholding obligations, Myanmar and Viet Nam hold a certain amount of government oil stocks. Thailand, Lao PDR and Indonesia have also been discussing the possibility of establishing public emergency oil stocks.

As oil security and emergency preparedness issues have been an integral part of their common agenda since the creation of ASEAN, ASEAN countries have established a regional treaty known as the ASEAN Petroleum Security Agreement (APSA). Its frameworks for regional consultations and co-ordination are designed to facilitate oil allocation in case of emergency; such assistance will be made on a voluntary and commercial basis.

Southeast Asia’s natural gas production has surged from 154 billion cubic metres (bcm) in 2000 to an estimated 202 bcm in 2012. Natural gas production in the region is expected to reach 226 bcm in 2018 and 260 bcm in 2035. At the same time, regional demand for natural gas has increased rapidly, from 85 bcm in 2000 to around 149 bcm in 2012. It is expected to reach 184 bcm in 2018 and 250 bcm in 2035.

Combined net natural gas exports of the ASEAN countries (including trade among them) stood at 62 bcm in 2012; the natural gas mainly came from Indonesia, Malaysia, Myanmar and Brunei Darussalam. Despite increasing gas production, their combined net gas exports are expected to decrease to 14 bcm by 2035, even though the region remains a net exporter of natural gas.

As most ASEAN countries are net exporters of natural gas, an emergency policy for natural gas disruption has not been highly prioritised in the region. However, together with declining output, increasing domestic natural gas use has led countries to consider formulating emergency response mechanisms. While supporting projects to explore offshore natural gas fields, some countries have started strengthening their regasification capacity and storage facilities by building up liquefied natural gas (LNG) receiving terminals.

© O

ECD/

IEA

2014

Oil

Market features and key issues

Oil productionSoutheast Asia is a mature oil-producing region, with most countries facing decline in large mature oil fields and having limited large new prospects.

Southeast Asia had 12.9 billion barrels in proven crude oil reserves at the end of 2012. Its oil production was around 2.6 mb/d in 2012. By country, Indonesia is the largest oil-producing country in the region, producing some 890 kb/d (35% of regional production) followed by Malaysia (26%), Thailand (17%) and Viet Nam (14%).

It is estimated that in the long term the region’s output will decline slowly, dropping to 2.4 mb/d in 2018 and 1.7 mb/d in 2035. At the end of the projection period, Indonesia will remain the largest producer, followed by Malaysia and Viet Nam.

Oil demandSupported by strong economic and population growth, the ASEAN’s oil demand is estimated to rise progressively from 5.7 mb/d in 2012 to 6.7 mb/d in 2018. Oil is expected to remain the region’s largest contributor to primary energy demand towards 2035, but a continued switching away from oil in power generation and industry will reduce its share of the energy mix from 38% to 31%, together with improvements in end-use efficiency and more use of biofuels to offset some of the strong growth in transport sector demand.

In 2011, transport consumed half of ASEAN’s total oil demand. The sector continues to underpin fast-rising oil consumption with a further expansion of vehicle ownership, insufficiently-developed public transport and oil product subsidies.

By country, Indonesia’s oil demand will rise from 1.6 mb/d in 2012 to some 1.9 mb/d in 2018. In Thailand, the country’s demand for oil will rise from 1.2 mb/d in 2012 to 1.4 mb/d in 2018. Malaysian oil demand is also expected to increase from 720 kb/d in 2012 to 850 kb/d in 2018. Viet Nam’s oil demand will reach 660 kb/d in 2018 compared with around 480 kb/d in 2012.

RefiningIn 2012, Southeast Asia had a combined refining capacity (including crude distillation units and condensate splitters) of just over 4.9 mb/d. Singapore is an important refining and product trading hub in the region, with 1.3 mb/d of refining capacity. In 2012, its refining sector supplied the region with significant oil product exports (gasoline and fuel oil in particular), notably to Malaysia, Australia and China.

Thailand also has a total refining capacity of 1.3 mb/d (including relatively smaller refineries), followed by Indonesia with capacity of 1.2 mb/d in 2012. Indonesia’s refineries operated at less than 70% of their capacity in 2012, and the country remained a large importer of oil products, especially of gasoline. Malaysia’s refining capacity of 590 kb/d is enough to make it self-sufficient in meeting demand for refined oil products. Viet Nam had one operating refinery with a capacity of 149 kb/d at the end of 2012, which is well below domestic demand for refined oil, and makes the country dependent on imports.

CHAPTER 5 Emergency response systems of IEA partner countries ASEAn 507

EnERgy SuPPly SECuRITy 2014 508 © O

ECD/

IEA

2014

In the medium term, several projects have been proposed to increase regional refining capacity, including in Viet Nam, Malaysia, Brunei Darussalam and Indonesia. Towards the end of the timeframe from 2013 to 2018, Viet Nam could increase its capacity by 200 kb/d and Malaysia by 300 kb/d.

Imports/exports and import dependencyStrong economic and population growth drives fast-increasing oil demand across the region, which has led to increased imports. With oil demand expected to continue to grow across Southeast Asia, declining crude production will push the growth of oil imports.

The region’s net imports of oil stood at over 3 mb/d in 2012. They are projected to increase to just over 4 mb/d in 2018. Given the expectation of higher oil prices, as well as oil product subsidies in some countries, rising oil imports will be an increasing economic burden and may leave countries more vulnerable to potential disruptions.

By country, Indonesia’s net imports will rise from 700 kb/d in 2012 to around 1.1 mb/d in 2018. Thailand’s net imports were over 800 kb/d in 2012, and its net imports are expected to reach 1 mb/d in 2018.

Emergency response policy and measures

Regional oil security policy developmentsCo-operation in the ASEAN region is essential for improving security of oil supply in the face of future supply disruptions. Several factors provide vivid examples of the shared risks of ASEAN countries: the rapidly increasing dependence on oil imports; the significance of the Malacca Strait chokepoint for oil; and LNG imports and the potential for maritime border disputes in the South China Sea.

In response to sharply growing oil demand and import dependence, ASEAN countries have been developing various national energy policies and programmes.

At the regional level, in 1986 ASEAN countries established the APSA, a regional treaty which had as its key principle to mitigate the impact of an oil supply disruption in one or more of the ASEAN member countries by activating a sharing scheme – the ASEAN Emergency Petroleum Sharing Scheme – for crude oil and petroleum products. In 1999, ASEAN energy ministers agreed to revise the 1986 APSA in order to incorporate both short-term response measures (e.g. demand restraint, fuel switching and a co-ordinated emergency response mechanism, the ASEAN CERM), and medium and/or long-term measures (e.g. fuel mix and fuel source diversification, energy efficiency and market liberalisation). The ASEAN CERM aims to be a framework for regional consultations and co-ordination to facilitate oil allocation in case of emergency; such assistance will be made on a voluntary and commercial basis.

Status of strategic oil stockholding in ASEAN countriesASEAN countries’ national emergency preparedness policies and implementation plans continue to evolve – and reflect differences in each country’s economic development, availability of indigenous resources, oil demand patterns and oil import dependency.

Although costs associated with building and holding public oil stocks are a challenge, many ASEAN countries have plans to develop government and commercial oil storage. In 2008, at the Fifth ASEAN+3 (China, Japan and Korea) Meeting in Thailand, energy

© O

ECD/

IEA

2014

ministers recognised the necessity of oil stockpiling initiatives in the light of persistent risks of supply disruptions and highly volatile oil markets; they welcomed activities for the development of the Oil Stockpiling Roadmap (OSRM) to support countries’ initiatives for building strategic storage over the medium term.

While most ASEAN countries rely on industry stockholding obligations, Myanmar and Viet Nam hold a certain amount of government oil stocks. Thailand, Lao PDR and Indonesia have also been discussing the possibility of establishing government held stocks.

Thailand and Viet Nam have made strong commitments to achieving stock levels comparable with the 90 days of net imports held by International Energy Agency (IEA) member countries while, initially at least, other countries plan to reach lower levels of under 50 days of consumption or net imports. Whether the oil will be held by government or industry, such policy-driven storage expansions will necessitate the construction of new storage capacity.

The current status of ASEAN countries on emergency response measures is briefly described below.

Brunei DarussalamThe country has the Energy Contingency Plan for Refined Petroleum Product Imports which sets an obligatory level of stockholding at 31 days for industry. The emergency stock is called Country Wide Stock (CWS). In times of emergency, the government has a mandatory right to purchase and control all crude and oil product stocks held by the industry.

CambodiaCambodia has a stockholding obligation on industry to hold at least 30 days of domestic oil consumption. It is considered that the country will maintain this level of industry obligation into the near future.

IndonesiaThe national oil company, Pertamina, holds 22 days of operational oil stocks based on domestic oil consumption. The National Energy Council (NEC) has a plan to strengthen the national stockholding system by holding public emergency stocks.

There is also an allocation system for supplying available oil to disrupted areas, called the Fuel Distribution System. Although the government has no specific legal authority to instruct the industry to implement the allocation mechanism, the government is able to request the industry to take the necessary measures to ensure domestic oil distribution as the industry needs to maintain its oil business licence.

Lao PDRThe oil industry is obliged to hold at least 15 days of oil imports. However, the government aims to establish public emergency stocks for up to 25 days of consumption.

MalaysiaAs a net exporting country, the Malaysian government does not consider holding emergency oil stocks to be necessary. However, legislation clearly endows the prime minister with the authority to issue directions on the operations of Petronas in case of emergency – including full control over the company’s stocks.

CHAPTER 5 Emergency response systems of IEA partner countries ASEAn 50 9

EnERgy SuPPly SECuRITy 2014 510 © O

ECD/

IEA

2014

MyanmarThe country held around 50 days of net imports in 2013. Most are commercial stocks, but it is reported that the government also holds around 18 days of oil stocks even though it is not clear that those public stocks are purely for emergency purposes. The government does not reveal its target for holding stocks of emergency oil; it is, however, expected that the country will hold around 70 days of net imports by 2015. The government plans to establish a target for a stockholding obligation on industry.

PhilippinesBased on Presidential Executive Order No. 134 of October 2002, the government requires its oil refineries to maintain a minimum inventory level of 15 days, while oil importers are obliged to hold 7 days of domestic supply. It is considered that total stock levels, including operational stocks, must not be less than 30 days of daily domestic supply. The government envisages maintaining its existing obligation level.

In case of emergency, the government would activate its oil contingency plan in order to implement potential measures such as oil allocation.

SingaporePower-generating companies in Singapore are obliged to hold 90 days of fuel oil stocks as backup fuels. However, there is no mandatory stockholding requirement for refineries or private oil companies operating in Singapore and obligatory crude oil stockpiling was abolished in 1983. Operational stocks in refineries are estimated at around 50 days.

ThailandThe Fuel Trade Act of 2000 places mandatory stockholding obligations on all refiners, retailers and importers in the private sector with operations greater than 100 kilotonnes (Kt) per year. Following amendment of the legislation in November 2013, the government imposes on refineries the obligation to hold 6% of their yearly sales of crude oil and oil products, and on retailers and importers to hold 6% of crude oil and 10% of oil products.

Their total levels must be at least 43 days of domestic consumption. Even before the amendment, the country’s stockholding levels, including operational stocks, were equal to around 45 days of national demand. The Thai government has made a strong commitment to increase emergency oil stocks up to 90 days of consumption.

Viet NamIn 2013, Viet Nam held 47 days of oil stocks based on consumption, which included 30 days of commercial stocks and 10 days of national products stocks. Based on the National Stockpile Master Plan approved by the prime minister in 2009, the country aims to hold at least 90 days of net imports (or around 60 days of consumption) by 2015. This would be achieved by increasing commercial stocks up to 40 days, by amplifying the level of operational stocks and by holding crude oil in the category of national stocks in addition to product stocks.

The General Directorate of Energy in the Ministry of Industry and Trade is a core body for oil emergency policy. In case of an oil supply disruption, the Committee on the State Management of Domestic Markets will be convened to make recommendations to the prime minister on possible emergency measures.

© O

ECD/

IEA

2014

Gas

Market features and key issues

Gas productionSoutheast Asia’s natural gas production has surged from 154 bcm in 2000 to an estimated 202 bcm in 2012, although it declined from 210 bcm in 2010. The region’s proven reserves of natural gas are considered to stand at 7.5 trillion cubic metres (tcm).

By country, Indonesia produced 77 bcm of natural gas in 2012 (equal to 38% of the region’s total), followed by Malaysia (56 bcm or 28%), Thailand (31 bcm or 16%), Brunei Darussalam (12.5 bcm or 6%), Myanmar (12 bcm or 6%) and Viet Nam (9.9 bcm or 5%).

Natural gas production in the region is expected to reach 226 bcm in 2018 and 260 bcm in 2035. Indonesia and Myanmar, and to a lesser extent Malaysia, will be the main contributors to drive further increases in Southeast Asian gas production in the period to 2035. Thailand, however, sees its gas production drop by 75% in the same period.

Gas demandRegional demand for natural gas has increased rapidly from 85 bcm in 2000 to around 149 bcm in 2012, the same level as Chinese natural gas demand in the same year. It is expected to reach 184 bcm in 2018 and 250 bcm in 2035.

At 21% of the primary energy mix, natural gas is the second most important energy source in the ASEAN region. The share of gas in the energy mix remains flat through to 2035, at just over 20%.

Figure 5.1.2 ASEAN regional gas balance

0

50

100

150

200

250

300

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

bcm

Net exports

Production

Consumption

Source: IEA (2013), Southeast Asia Energy Outlook 2013, IEA, Paris.

By country, Thailand consumed the largest amount of natural gas in the region in 2012; this stood at 43 bcm or 29% of combined demand for the region. In the same year, two other large consumers were Indonesia with 39 bcm (26%) and Malaysia with 37 bcm (25%).

In the long term, Indonesia’s consumption is estimated to more than double from around 40 bcm in 2012 to 81 bcm in 2035, driven by expanded use in fertiliser production, power generation and industry.

CHAPTER 5 Emergency response systems of IEA partner countries ASEAn 511

EnERgy SuPPly SECuRITy 2014 512 © O

ECD/

IEA

2014

Thailand’s demand is also expected to rise from 43 bcm in 2012 to 65 bcm in 2035, with declining indigenous production meaning increased dependence on LNG imports. Natural gas dominates the power sector and is responsible for 68% of power generation; however, this share falls to 52% in 2035 as the country is expected to diversify the energy mix.

Malaysia, the third-largest energy consumer in the ASEAN region and a large net natural gas exporter, will increase its domestic demand for natural gas from 37 bcm in 2012 to 48 bcm in 2035.

Gas import dependencySoutheast Asia is a key exporter of LNG to global markets, and increasingly an LNG importer as well.

Combined net natural gas exports of the ASEAN countries (including trade among them) stood at 62 bcm in 2012, which mainly come from Indonesia, Malaysia, Myanmar and Brunei Darussalam. Despite increasing gas production, the combined net gas exports are expected to decrease to 14 bcm by 2035, even though the region remains a net exporter of natural gas. Volumes for exports will decline owing to growing domestic needs and because many of the key producing fields are mature and declining in output.

Brunei Darussalam was the first country in Southeast Asia to export LNG starting in 1972, and remains an important LNG exporter. Malaysia and Indonesia were also pioneers in LNG trade and remain among the top five important global exporters. However, Malaysia and Indonesia started importing LNG, as extra supply is needed to satisfy rising domestic needs (and overcome localised shortfalls) while respecting long-term export contracts.

In contrast, Thailand imported 11 bcm of natural gas in 2012 and Singapore imported 9.4 bcm in the same year. The majority of Thailand’s imports come from Myanmar through pipelines. It is also expected that Viet Nam, the Philippines and Myanmar will join the net importers in the coming years.

LNG terminalsThe region had 89 bcm per year of LNG liquefaction capacity in 2013, accounting for almost one-quarter of the world total. The facilities are located in Indonesia, Malaysia and Brunei Darussalam.

Indonesia’s three operating LNG liquefaction plants (Bontang, Arun and Tangguh) have a combined capacity of 46 bcm per year. Two new liquefaction plants, Sengkang and Donggi-Senoro, are under construction on the island of Sulawesi. Additionally, there is a plan to expand the Tangguh plant together with the Abadi floating LNG (FLNG) project in the remote Arafura Sea. These projects will boost the country’s combined liquefaction capacity to over 60 bcm.

Malaysia has a liquefaction capacity of around 33 bcm per year in its LNG terminal. An expansion plan will bring its total capacity to almost 38 bcm by 2015. Construction has also begun on the Kanowit FLNG terminal with a capacity of 1.6 bcm per year. The country also has plans to build a Rotan FLNG terminal and a Murphy FLNG terminal with a capacity of 2 bcm and 1 bcm respectively.

The Brunei LNG terminal started in 1972 and its liquefaction capacity is 9.8 bcm per year.

Fast-rising demand and limited interconnections between countries in Southeast Asia have prompted the installation of several LNG regasification terminals in recent years: Indonesia, Malaysia, Singapore and Thailand are now receiving LNG shipments. Their combined regasification capacity stood at 21 bcm per year at the end of 2013.

© O

ECD/

IEA

2014

Indonesia’s first regasification terminal, a floating storage and regasification unit (FSRU) with a capacity of 4.1 bcm in West Java, started receiving deliveries in 2012. Two others were under construction in 2013 and there are plans to build several more in order to meet domestic gas demand.

In 2013, Malaysia became a simultaneous exporter and importer of LNG with the commissioning of the 5.2 bcm Lekas regasification terminal in Malacca. The facility is set to be supplied under long-term contracts signed with Qatargas and Gladstone LNG (Australia), while at least two other small regasification terminals are planned in Pengerang and Lahad Datu.

Singapore has a regasification terminal on Jurong Island with a regasification capacity of 4.8 bcm. Expansion plans will increase its capacity up to around 12 bcm per year.

With increasing domestic demand, Thailand started taking LNG shipments in 2011 following the opening of the Map Ta Phut regasification terminal with a regasification capacity of 6.8 bcm. It plans to double this capacity through expansion by 2016.

Viet Nam has plans to build three regasification terminals: Thi Vai terminal (1.4 bcm per year), Binh Thuan terminal (4.1 bcm) and Son My terminal (4.1 bcm).

The Philippines plans to build two regasification terminals, one by 2014 and the other by 2017. Once both facilities are operational, the country will have a combined regasification capacity of 3.3 bcm per year.

While the China-Myanmar Gas Pipeline was put into full operation with an annual transmission capacity of 12 bcm in October 2013, Myanmar also issued a tender in July 2013 to import increasing volumes of LNG.

Emergency policy

As most ASEAN countries are net exporters of natural gas, an emergency policy for natural gas disruption has not been highly prioritised in the region. There are no mandatory industry stocks or government stocks of natural gas in the region.

However, together with declining output, increasing domestic natural gas use has led countries to consider formulating an emergency response plan. While supporting projects to explore offshore natural gas fields, some countries have also started strengthening their regasification capacity and storage facilities by building up LNG receiving terminals (see above).

In one of the net natural gas importers in the region, Thailand, the government prepared the Mitigation Plan for Natural Gas Supply Disruption with relevant stakeholders, although there is no clear legal basis for emergency planning and managing crisis situations for natural gas. The plan aims to reduce the potential for shortages of electricity, liquefied petroleum gas (LPG) and liquefied carbon dioxide products during any disruption of natural gas supply from the Gulf of Thailand. The plan is designed to assist the upstream operators and a gas transmission system operator (TSO) during a gas supply disruption in maintaining fuel supply. Furthermore, the country’s TSO, the PTT, has developed a colour alert system for categorising levels of disruption and for helping define actions for each level of disruption. These actions include surge production in unaffected domestic gas fields and fuel switching from natural gas to other alternative fuels in power plants.

In net producing countries, surge production is one of the most important measures available for tackling natural gas disruptions. However, the largest natural gas producing country, Indonesia, also issued Regulation No 03/2010 concerning natural gas allocation and usage for domestic needs. The regulation mainly focuses on normal time market obligation, but also sets the priority list for natural gas allocation.

CHAPTER 5 Emergency response systems of IEA partner countries ASEAn 513