Page 9 - AsiaElec Week 48 2020

AsiaElec NEWS IN BRIEF AsiaElec

ENERGY TRANSTION list as the government continues to pursue sits idle off ports
the development of a downstream mining
Petronas calls for stronger industry. Bukit Asam’s project, a potentially China has suggested almost $700 million
loss-making enterprise that converts coal
worth of Australian coal is being held up
collaboration on energy into a type of cooking gas called dimethyl at ports due to “environmental quality”
ether, is now eligible for a land and building
problems.
transition acquisition tax waiver and less red tape, been stranded off the coast of two major
For months, dozens of bulk carriers have
among other incentives. The list and its
As more countries in Southeast Asia make terms are outlined in Presidential Regulation Chinese ports unable to unload their cargoes,
strides towards embracing the global energy (Perpres) No. 109/2020, a revision of Perpres with a Bloomberg estimate of more than 60
transition, PETRONAS has called for a No. 3/2016, which did not include the Bukit ships now in limbo in November.
stronger collaboration amongst ASEAN Asam project. “[This is] a positive signal Chinese authorities have not previously
governments, energy players as well as the and big support from the government to explained the exact reasons for the long
public and private sectors to collectively optimise the country’s overflowing natural delays, which have coincided with a series
leverage on each other’s strengths in achieving wealth,” wrote Bukit Asam corporate secretary of restrictions and bans Beijing has imposed
a sustainable, low-carbon future. Apollonius Andwie on Tuesday. on other Australian exports amid diplomatic
To date, ASEAN member countries have Shares of Bukit Asam, traded on the tensions.
collectively endorsed ambitious targets that Indonesia Stock Exchange (IDX) under the But in answer to a question on Wednesday,
seek to improve the rate of energy efficiency symbol PTBA, had risen 1.27 percent as of China’s Foreign Ministry spokesman Zhao
improvement, limit emissions from fossil fuels 1:24 p.m. Jakarta time on Tuesday, as the Lijian has for the first time suggested quality
and expand the role of renewables especially main gauge, the Jakarta Composite Index problems are to blame.
in the power sector – positive signs that the (JCI) gained 0.87 percent. The stocks are China has unofficially banned Australian
region is moving in the right direction. down 10.15 percent so far this year. The coal coal imports since October amid souring
In a special address titled ‘Southeast Asia gasification plant, which is slated to begin relations between the two countries, and in
Energy Outlook in a Global Context’ at operations in late 2024, is being constructed in turn, increased imports from Mongolia and
the opening of the virtual ASEAN Energy Tanjung Enim, South Sumatra, a center of coal Russia.
Business Forum (AEBF) 2020 yesterday, mining in the country. Having been added Mr Zhao said China had strengthened
PETRONAS President and Group Chief to the strategic project list, Bukit Asam is the examination and testing of imported coal
Executive Officer Tengku Muhammad Taufik also obliged to create local job opportunities. regarding safety, quality and environmental
said: “While the region has made a start Other listed energy projects include oil standards “so as to better protect the
towards carbon neutral energy pathways, refineries, gas-rich fields, household gas pipes legitimate interests and the environmental
there remain further opportunities to and publicly listed PT Bumi Resources’ coal- interests of the Chinese side”.
strengthen regional cooperation and create to-methanol plant in Bengalon, East Kutai, Coal is one of seven Australian imported
the right eco-system to promote a wider usage East Kalimantan. The acquisition tax waiver products that have reportedly been targeted
of energy from clean and sustainable sources, and promises of other fiscal incentives add to with bans by China amid rising tensions.
particularly solar and wind. The shift towards a “new generation of fossil fuel subsidies”, as
a low-carbon future will require coordinated one analyst said, to keep such coal gasification
and collective action from all stakeholders.” projects running.
He added that government support and Energy finance analyst Ghee Peh, in COAL
intervention in developing and implementing a recent study, found that producing and
supportive energy policies and business- selling dimethyl ether would cost Bukit Adani Group to self-finance
friendly regulations are pivotal for businesses Asam $377 million in operational losses each
to survive, while public-private sector year. “Technical viability is not the same as rail link for Australian coal
collaboration will help attract technology- economic viability. The DME [dimethyl ether]
based Foreign Direct Investments as well as project doesn’t make economic sense,” wrote mine project via ports unit
technology proprietorships and solutions Peh, a researcher with the Institute for Energy
providers. Economics and Financial Analysis (IEEFA). he Adani Group has resorted to “self-
Tengku Muhammad Taufik also pointed Indonesian coal miners agree that coal financing” of the rail haulage works for the
out that it is important to address the energy gasification is a capital intensive undertaking Carmichael coal mine and rail project in
trilemma of security, sustainability and and have asked for incentives to execute Queensland’s Galilee Basin with its ports
affordability. such projects. In response, the government unit — Adani Ports and Special Economic
PETRONAS, November 19, 2020 introduced a coal royalty waiver in the Zone Ltd (APSEZ) — setting up an Australian
recently passed Job Creation Law. subsidiary to finance, build and run the rail
link estimated at about $350 million.
COAL The Adani Group’s move to involve APSEZ
directly in financing and operating the rail
Indonesian govt grants COAL haulage link is reflected in the latter’s books,
which list Bowen Rail Company Pty Ltd —
incentives to Bukit Asam’s China claims ‘quality’ the new Australian unit — as a subsidiary,
held via a Singapore subsidiary, Bowen Rail
coal gasification project problem with Australian Operation Pte Ltd.
The Adani Group has been trying to
State-owned coal miner PT Bukit Asam’s $2 coal as $700 million worth develop the coal mine and the rail project for
billion flagship coal gasification project has over a decade but is unable to attract debt or
been added to the national strategic projects equity investors in the face of growing global

Week 48 02•December•2020 www. NEWSBASE .com P9