06-07-02 Energy ministers from Southeast Asia have endorsed a $ 7 bn natural gas pipeline project to alleviate future energy shortages and bolster regional development. The ministers -- meeting at the opening of the Association of Southeast Asian Nations Ministers of Energy meeting in Bali -- signed a memorandum of understanding for the pipeline and announced the completion of a master plan for the project.
The energy grid is expected to be finished in 2020 and will run above ground and underwater. "This project can be seen as a major achievement," said Indonesia's Energy Minister Purnomo Yusgiantoro, adding that the country will be a major player because of its large gas reserves.

While many Western countries have large oil stockpiles that can be tapped in case of unexpected supply disruptions, Southeast Asian nations don't have such ready reserves. Indonesia has already developed several pipelines -- from West Natuna to Singapore, West Natuna to Malaysia, and from South Sumatra to both Singapore and Malaysia. It is also studying a possible pipeline from West Natuna to Thailand.
"Building the infrastructure is important, not only to supply the gas, but also to create economic activities along the line," Purnomo said.

ASEAN members have previously said that a regional pipeline, as well as electricity networks, are the most efficient way for ASEAN countries to prevent a future energy crisis.