Southeast Asia Sees More than $1 Trillion in Active Energy Projects
Southeast Asia, which is rich in petroleum and natural gas resources, has struggled in the past few years to meet its growing demand for energy amid low commodity prices. Exploration and production companies in the region have been cutting back in capital spending and employment, particularly for offshore projects.
In addition, Singapore plans to implement Southeast Asia’s first carbon tax starting in 2019, according to Bloomberg. The tax would raise the nation's energy costs and require more than 30 major polluters, including some power plants and oil refiners, to pay up. (South Korea has national emissions trading, but no actual tax.)
Nonetheless, the region has a large and impressive number of energy-related projects at various stages of development. Industrial Info is tracking more than $1 trillion in active projects that are based in Southeast Asia's Power Generation, Oil & Gas, Petrochemical, Refining and Alternative Fuels industries.
Two of the largest refining projects to be proposed in the region are in Indonesia: PT Asinusa Putra Sekawan's $5 billion Pulau Nipah (Batam) Refinery in Riau, and PT Pertamina Persero's $900 million Balikpapan Refinery in Kalimantan Timur, Indonesia. Although both projects are currently slated to begin construction within the next two years, Industrial Info believes they have a low probability of doing so. For more information, including current schedules and contact details, see Industrial Info's project reports for the Pulau Nipah and Balikpapan projects.
About 79% of the $1 trillion in active projects are in the planning phases, where plenty of factors could delay or cancel development.
Vietnam is hosting one of the largest Power Generation Industry projects under construction: GELEXIMCO Group's $865 million Thang Long Thermal Power Station in Hoanh Bo, Vietnam. The 600-megawatt (MW) facility will comprise two coal-fired Alstom circulating fluidized bed boilers that will drive two 300-MW DongFang electric steam turbines and generators. For more information, see Industrial Info's project report.
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