Growing Together: Economic Integration for an Inclusive and - escap
Growing Together: Economic Integration for an Inclusive and - escap
Growing Together: Economic Integration for an Inclusive and - escap
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CHAPTER THREE<br />
77<br />
Building seamless connectivity<br />
A major gas trade development project in the<br />
subregion is the Tr<strong>an</strong>s-ASEAN Gas Pipeline<br />
Project (TAGP). This project, which aims to link<br />
almost 80 per cent of the subregion’s total<br />
gas reserves, includes the construction of 13<br />
cross-border pipelines (figure III.5). It faces a<br />
series of technical as well as institutional <strong>an</strong>d<br />
commercial challenges. The technical factors<br />
include harmonization <strong>an</strong>d st<strong>an</strong>dardization<br />
of technical matters, gas quality specification,<br />
geo-sequestration of CO2, <strong>an</strong>d environmental<br />
regulation <strong>an</strong>d st<strong>an</strong>dards. Institutional factors<br />
include law <strong>an</strong>d regulation of cross-border<br />
trade, the title <strong>an</strong>d ownership of the pipelines,<br />
the harmonization of tax systems <strong>an</strong>d dispute<br />
FIGURE TITLE<br />
III.5. The proposed Tr<strong>an</strong>s-ASEAN gas pipeline grid<br />
INDIA<br />
2<br />
3<br />
MYANMAR<br />
9<br />
8<br />
LAO PEOPLE'S<br />
DEMOCRATIC<br />
REPUBLIC<br />
THAILAND<br />
7<br />
MALAYSIA<br />
1<br />
6<br />
CAMBODIA<br />
5<br />
4<br />
INDONESIA<br />
CHINA<br />
13<br />
11<br />
10<br />
SINGAPORE<br />
VIET NAM<br />
12<br />
resolution mech<strong>an</strong>isms. Commercial factors<br />
include gas price mech<strong>an</strong>isms, dem<strong>an</strong>d<br />
stability, competition, commercial viability,<br />
fin<strong>an</strong>cing tr<strong>an</strong>sit rights, third-party access to<br />
common gas carriers <strong>an</strong>d tax incentives. 39<br />
In 2009, the economies of the subregion<br />
accounted <strong>for</strong> 3.2 per cent of Asia-Pacific<br />
electricity trade. The Lao People’s Democratic<br />
Republic is the largest exporter of electricity<br />
while Thail<strong>an</strong>d is the largest importer. The major<br />
programme promoting the interconnection<br />
of the power grids in South-East Asia is the<br />
ASEAN Power Grid, which has four ongoing<br />
interconnection projects <strong>an</strong>d <strong>an</strong> additional<br />
BRUNEI<br />
DARUSSALAM<br />
MALAYSIA<br />
INDONESIA<br />
PHILIPPINES<br />
Source: ESCAP based on data from ASEAN Centre <strong>for</strong> Energy. Available from http://ase<strong>an</strong>energy.org.<br />
1. Malaysia to Singapore<br />
(commissioned 1991)<br />
2. My<strong>an</strong>mar (Yad<strong>an</strong>a) to<br />
Thail<strong>an</strong>d (Ratchaburi)<br />
(commissioned 1999)<br />
3. My<strong>an</strong>mar (Yetagun) to<br />
Thail<strong>an</strong>d (Ratchaburi)<br />
(commissioned 2000)<br />
4. Indonesia (West Natuna) to<br />
Singapore (commissioned<br />
2001)<br />
5. Indonesia (West Natuna)<br />
to Malaysia (Duyong)<br />
(commissioned 2002)<br />
6. Indonesia (Grissik) to<br />
Singapore (commissioned<br />
2003)<br />
7. Tr<strong>an</strong>s Thail<strong>an</strong>d - Malaysia<br />
(commissioned 2005)<br />
8. Indonesia (South Sumatra)<br />
to Malaysia<br />
9. Indonesia (Arun) to Malaysia<br />
10. Indonesia (East Natuna <strong>an</strong>d<br />
West Natuna) to Malaysia<br />
(Kerteh) <strong>an</strong>d Singapore<br />
11. Indonesia (East Natuna) to<br />
Thail<strong>an</strong>d (JDA - Eraw<strong>an</strong>)<br />
12. Indonesia (East Natuna)<br />
to Malaysia (Sabah) <strong>an</strong>d<br />
the Philippines (Palaw<strong>an</strong> -<br />
Luzon)<br />
13. Malaysia - Thail<strong>an</strong>d (JDA) to<br />
Viet Nam