1. We, the ASEAN Ministers on Energy, held our Twenty-Third ASEAN Ministers on Energy Meeting (23rd AMEM) in Siem Reap, Cambodia on 13 July 2005. H.E. Mr. Suy Sem, Minister of Industry, Mines and Energy of Cambodia presided over the 23rd AMEM, with H.E. Dr. Nam Viyaketh, Vice Minister of Industry and Handicrafts of Lao PDR, as Vice-Chairman.
2. We discussed various measures to promote greater energy stability, security and sustainability, as pathway to ASEAN Community 2020. We also discussed the recent developments related to the increasing world oil prices, on ongoing and future programs and activities of the ASEAN Council on Petroleum (ASCOPE) and Heads of ASEAN Power Utilities/Authorities (HAPUA) Council, and the progress of the first year implementation of the ASEAN Plan of Action for Energy Cooperation 2004-2009.
3. Samdech Hun Sen, Prime Minister of the Kingdom of Cambodia, officially opened the 23rd AMEM. In his Keynote Speech, the Prime Minister highlighted that ASEAN’s over-reliance on external sources for oil can have serious implications on the security of its energy supply. He stressed that Asia must jointly develop and explore new sources and supplies of energy within the region and to embark on efficient use of energy. This has become the most important condition for the sustainable development in ASEAN and Asia at large in the 21st Century.
4. To address the shared concern about impact of high energy prices on the economy, he urged ASEAN and its plus three partners to take necessary measures to respond to high price of oil. While facing the growing energy demand and rising dependence on oil import, ASEAN+3 shall look into an effective tool for energy security such as the possibility of developing oil stockpiling. ASEAN+3 must forge stronger partnership in new energy development in order to diversify energy sources and contribute to rural development. While securing adequate supply of energy, ASEAN+3 should also take into account the environmental issue as in line with the Kyoto Protocol.
ASEAN Economic Resilience
5. We noted that the economy of ASEAN remained resilient in the face of rising oil prices. But we were aware that further increase in oil prices, especially if sustained for a longer period of time, may potentially have repercussions on our economies. We would therefore be carrying out our own measures to alleviate the adverse effects of rising oil prices.
6. At the same time, we welcomed the decision of the Organization of Petroleum Exporting Countries (OPEC) to join effort to maintain oil market stability with reasonable price consistency. We looked forward to OPEC’s initiative to closely monitor oil market developments and to take appropriate and prompt actions as and when need arises.
Promotion of Energy Efficiency and Conservation and Renewable Energy
7. We accorded high priority to promotion of energy efficiency in the transportation and industrial sectors as this may be one of the most economical and effective ways to mitigate the adverse impacts of higher oil prices. We affirmed our commitment to constantly finding ways to boost energy efficiency, including putting in place tax incentives for companies that invest in energy efficient technologies and upgrading existing equipment to become more energy efficient. ASEAN will continue to implement efficient policy programs to encourage the use of energy labels and standards to improve energy efficiency of appliances and equipment. Greater efficiency of energy end-use in buildings, industry and the transport sector can contribute to significant reduction in energy demand and reduce the harmful emissions from upstream energy generating plants. We also agreed to popularize cogeneration technology as a method to enhance energy efficiency.
8. We were gratified that Member Countries had made commendable effort over the past one year to promote the production and utilization of renewable energy with a view to attain the 22nd AMEM’s objective to increase the share of renewable energy in power generation in the region to ten per cent by 2010. We agreed to intensify effort to promote public-private partnership in promoting solar, wind, geothermal, hydro and biomass energy.
ASEAN Energy Awards 2005
9. To give recognition to public and private entities excellence in the field of energy efficiency and renewable energy, we recognised the winners and runners-up of the ASEAN Energy Awards 2005 under the ASEAN Best Practices Competition for Energy Efficient Buildings and Renewable Energy Project Competition.
10. We commended the following individuals who have contributed towards fostering and promoting ASEAN Energy Cooperation and recognise their services through the Excellence in Energy Management Awards. The awardees are Mr. Vincent S. Perez, Jr., former Secretary of Energy of the Philippines; Dr. Prommin Lertsuridej, former Minister of Energy of Thailand; Mr. Cyril C. Del Callar, former Senior Official on Energy of the Philippines; Dato Idris Belaman, former Senior Official on Energy of Brunei Darussalam; and Mr. Honorio R. Vitasa, former ASEAN Centre for Energy Governing Council member.
Accelerating Cooperation in Oil and Gas and Power Supply
11. We affirmed our commitment to promote the use of natural gas, which is cleaner, through the cross-border Trans-ASEAN Gas Pipeline (TAGP) Project. We were pleased to note that natural gas has become the dominant fuel for power generation in some of the ASEAN member countries, and some are contemplating importing or using LNG, to further diversify and use cleaner fuel sources. Furthermore, ASEAN’s collaboration in the TAGP and the ASEAN Power Grid (APG) Projects will also allow the optimization of the region’s energy resources for greater security.
12. We welcomed the initiative by the HAPUA Council to formulate the Memorandum of Understanding (MOU) on ASEAN Power Grid. The MOU will provide a framework for a common ASEAN policy on power interconnection and trade.
13. We are committed to create a favourable investment climate in the oil, gas and electricity industries in the region.
14. We commended the progress made by our Senior Officials and ASCOPE in updating the 1986 ASEAN Petroleum Security Agreement to provide the mechanism for timely coordinated responses and measures during periods of petroleum shortages and emergencies.
Enhancing Cooperation with Dialogue Partners
15. We will continue to seek to mitigate the economic impacts of the increasing energy costs through an array of joint programs under the ASEAN+3 energy cooperation framework, focusing on implementation of coordinated efforts to integrate alternative and renewable energy sources into the regional energy supply chain, undertaking feasibility studies on oil stockpiles, cooperating closely to maintain the stability of the energy market and preparing contingencies for supply disruptions.
16. We thanked our Dialogue Partners and international organisations for providing technical assistance and support to ASEAN energy programs and activities in 2004-2005.
17. We agreed to convene the 24th ASEAN Ministers on Energy Meeting in Vientiane, Lao PDR in 2006.
List of Ministers
- H.E. Pehin Dato Yahya, Minister of Energy of Brunei Darussalam
- H.E. Mr. Suy Sem, Minister of Industry, Mines and Energy of the Kingdom of Cambodia
- H.E. Mr. Nurrachman Oerip, Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia to the Kingdom of Cambodia
- H.E. Dr. Nam Viyaketh, Vice Minister of Industry and Handicrafts of Lao People’s Democratic Republic
- H.E. Dato’ Shaziman Bin Abu Mansor, Deputy Minister of Energy, Water and Communications of Malaysia
- H.E. Brig. Gen. Than Htay, Deputy Minister of Energy of Union of Myanmar
- H.E. Dr. Guillermo R. Balce, Undersecretary of Energy of the Philippines
- H.E. Mr. Heng Chee How, Minister of State for Trade and Industry of Singapore
- H.E. Mr. Paichit Thienpaitoon, Vice Minister for Energy of Thailand
- H E. Dr. Do Huu Hao, Vice Minister of Industry of Viet Nam
- H.E. Pengiran Dato Mashor Pengiran Ahmad, Deputy Secretary-General of ASEAN