The next step towards an integrated Asean energy network may be underway in Malaysia as Petronas and Singapore’s Keppel Corporation negotiate the building of a new power plant in Johor.
If talks are successful, Keppel could own 30 per cent of a 1,200 megawatt natural gas power plant that is expected to provide electricity for a RM60 billion refinery and petrochemical industry complex in the area. Capacity would be large enough to also sell electricity to Singapore’s national grid, which currently buys no power from Malaysia.
The Association of Southeast Asian Nations (Asean) have identified a regional energy network as a long term target to ensure energy security and promote low-carbon energy growth for member nations. Experts note that a full-blown network will likely be based on a series of bilateral arrangements such as the potential Malaysia-Singapore electricity sales. In December, Singapore electricity regulator - the Energy Market Authority - proposed policies allowing electricity imports of up to 600 megawatts per source country.
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