Page 13 - AsiaElec Week 03 2021

AsiaElec NEWS IN BRIEF AsiaElec

food, housing and transportation. Efforts are South Asia nations to ration distributor for the southern half of Pakistan,
already underway in Japan to make renewable said in a letter to industry associations that it
energy and electric vehicles mainstream. gas, seek other fuels faces an “emergency situation” and pegged the
In order to achieve carbon neutrality by daily supply gap at about 200mn cubic feet.
2050, systemic socioeconomic changes are Pakistan and Bangladesh are rationing gas In Bangladesh, the government has cut
needed, such as lifestyle changes in clothing, and buyers across South Asia are seeking gas supplies to power plants due to lower
food, housing and transportation. Efforts are alternative fuels after spot liquefied natural electricity demand during winter, while
already underway in Japan to make renewable gas (LNG) prices surged to record highs, maintaining steady gas flows to industries,
energy and electric vehicles mainstream. government and industry officials told a senior official at the state-run Petrobangla
WORLD ECONOMIC FORUM Reuters. said.
Spot LNG prices LNG-AS have nearly Soaring prices have led to cancelled orders
tripled since early November as freezing from state-owned buyers Indian Oil Corp,
BIOFUELS temperatures across North Asia boosted Pakistan LNG and Bangladesh’s Rupantarita
demand and depleted inventories. Since July, Prakritik Gas Co.
Malaysia takes WTO legal prices are up a dizzying 1,000%. few tenders, we didn’t get any response from
“LNG prices have gone crazy… For the last
Gas-fired power plants and industries
action against EU over palm across the region are scrimping on gas, suppliers,” said Rafiqul Islam, general manager
with the scramble for other fuels driving up
at Rupantarita Prakritik.
biofuel curbs demand for liquefied petroleum gas (LPG) the spot market … But it is very unlikely to
“We are continuing our efforts to buy from
and residue oil.
Malaysia is taking legal action at the global In Pakistan, which is more reliant on spot get competitive prices in this highly volatile
trade watchdog against the European Union LNG imports for its winter needs, gas use for market,” he said.
and member states France and Lithuania industry is being limited to certain hours and Reliance Industries, operator of the biggest
for restricting palm oil-based biofuels, the industry executives have warned the situation refining complex in western India, has almost
government said. has become critical. halted LNG imports and switched to cheaper
The world’s second largest palm oil A recent power blackout was partly caused alternatives, industry sources said. Reliance
producer, which has called a EU renewable- by a gas shortage after buyers who snapped up did not respond to a Reuters request for
energy directive “discriminatory action,” record-cheap LNG earlier in the year balked at comment.
is seeking consultations under the World paying up during the recent price surge. South Asia has been a critical growth
Trade Organisation’s Dispute Settlement “The current gas crisis being faced by the market for LNG, with imports by India,
Mechanism, the Plantation Industries and industry includes disconnection of gas supply Pakistan and Bangladesh climbing 8% in
Commodities Ministry said in a statement on to industries as well as low gas pressure,” said 2020 to a record 50.48 billion cubic metres
Friday. Saleem Uz Zaman, president of the Trade and (BCM) despite the coronavirus pandemic’s
Minister Mohd Khairuddin Aman Razali Industry Association of Karachi. hammering of the region’s economies,
said the EU proceeded with implementing Sui Southern Gas Company, the gas according to Refinitiv ship-tracking data.
the directive without considering Malaysia’s
commitment and views, even after Malaysia
gave feedback and sent economic and
technical missions to Europe.
The EU directive “will mean the use of
palm oil as biofuel in the EU cannot be taken
into account in the calculation of renewable
energy targets and in turn create undue trade
restrictions to the country’s palm oil industry,”
he said in the statement.
The ministry filed the WTO request with
cooperation from the Attorney General’s
Chambers and the International Trade and
Industry Ministry, taking action it had warned
of in July against EU Renewable Energy
Directive II.
Malaysia will act as a third party in a
separate WTO case lodged by neighbouring
Indonesia, the world’s biggest palm oil
producer, as a sign of solidarity and support,
the ministry statement said.

FUELS

Record LNG prices push

Week 03 20•January•2021 www. NEWSBASE .com P13