Malaysia mulls over plan to buy electricity from Laos

The Star 8 Oct 15;

KUALA LUMPUR: Laos, Thailand and Malaysia may proceed with a planned cross-border power trade minus Singapore, which had some concerns over the initiative, said Datuk Seri Dr Maximus Ongkili.

The Energy, Green Technology and Water Minister said his officers were exploring the possibility for the pilot project, known as the Laos PDR, Thailand, Malaysia, Singapore (LTMS) Power Integration Project (PIP), to be carried out in two phases.

“Under Phase One, Laos, Thailand and Malaysia can embark on this project with Malaysia buying the proposed 100MW from Laos through Thailand,” said Ongkili during the opening of the 33rd Asean Ministers on Energy Meeting (Amem) at Grand Hyatt Hotel.

The LTMS-PIP is part of the Asean Power Grid initiative to ensure energy security and greater utilisation of shared resources among member states.

The LTMS-PIP plan was initiated during the last Amem meeting in Vientiane, Laos, in 2014.

Officials from LTMS countries had met 11 times since then and a memorandum of understanding (MoU) among the partners was supposed to be signed during this week’s meeting.

“Unfortunately, I have been made to understand that due to certain reservations, this MoU will not be signed,” he said.

Ongkili said Singapore practised transparent and competitive bidding for its supply of power.

He said they were not prepared at this moment to impose and take a load of 100MW.

“Singapore needs more time to decide whether to make a direct award or direct absorption by-passing the normal competitive bidding process,” he said.

Ongkili is confident that these issues can be ironed out in the next six months while the three other countries can absorb the 100MW in the meantime.

He pointed out that the electricity utilities in the three countries were vertically integrated and only a Power Purchasing Agreement ­needed to be signed.

Ongkili said strengthening energy co-operation would bring the region closer to its goal of achieving greater energy security and realising Asean connectivity.


Laos, Thai, Msia & Singapore power deal delayed
VEENA BABULAL New Straits Times 7 Oct 15;

KUALA LUMPUR: The signing of the Laos, Thailand, Malaysia and Singapore (LTMS) Power Integration Project deal has been delayed for another six months.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said the pioneer project's memorandum of understanding (MoU), which was due to be signed during the 33rd Asean Ministers on Energy Meeting and Associated Meetings which is being held here from Monday to Friday, has been stalled due to reservations by Singapore.

"The challenges are actually not big. It's mainly from Singapore but I am confident the MoU would be signed in six months,” he said.

He said Singapore needed some time to go through the agreement, which involves a direct award or direct absorption which bypasses the normal competitive bidding process.

"For now, Singapore needs more time because they need to go through a transparent and competitive bidding process. This PIP pilot project is carried out in two phases, where under phase one Laos, Thailand and Malaysia can embark on this project with Malaysia buying the proposed 100 megawatts from Laos and Thailand," he said.

"At this point they are not ready to just impose the MoU conditions and take on the power load through the system," he added.