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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

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