Vietnam is going nuclear

Caught between increasing demand for energy and the rising cost of oil and gas, Vietnam has decided to meet its long term energy needs by resorting to nuclear power. Currently, hydropower accounts for 50% of Vietnam's electricity supply while oil and gas, and coal accounts for 25% and 20% respectively. Studies have shown that after 2020 there would be a electricity shortfall of 30 to 70 billion kilowatt-hours every year.

To solve the problem, Vietnam would have to depend on electricity supplies from neighbouring countries (such as China and Laos), import more oil and gas to produce electricity, or import millions of tonnes of coal every year. But the Vietnamese argued that none of these options would be feasible due to high cost, poor technical infrastructure, or environmental problems.

Thus, Hanoi decided last month to go ahead with a project to construct nuclear power plants, the first in the Southeast Asian region. The plant, estimated to cost around $3.4 billion, is expected to go into service in 2017 with an output between 1,400 and 4,000 megawatts.

Despite its controversial role in Iran's nuclear programme and Washington's opposition to exporting nuclear technology to other countries, Moscow has offered to implement the entire project on a turnkey basis, as well as to organise training for Vietnamese personnel. The offer, which was viewed as part of Russia's policy of strengthening its position in Southeast Asia, would be carried out by Atomstroiexport, Russia's state-run nuclear-technology export agency and the world's only nuclear company building power units for nuclear plants in China, India and Iran.

- Maybe Singapore should go nuclear too. After all, Malaysia, by its own admission will run out of natural gas in 33 years, and Indonesia has already used up more than half its natural gas reserves. And these countries, with Peak Gas looming, are the very same ones supplying the natural gas from which 80% of Singapore's electricity is generated? Hmm.

(2006-06-22 13:35:42 SGT) [Energy] Permalink

Nokia, Siemens to merge phone equipment units

news.yahoo.com :

Finnish mobile giant Nokia and Germany's Siemens AG agreed to combine their phone equipment units, the companies said in a joint statement. The venture would bring annual cost savings of 1.5 billion euros ($1.90 billion) by 2010.

Nokia Siemens Networks, which combines Nokia's Networks unit and Siemens' carrier-related operations, had 2005 pro forma revenues of 15.8 billion euros and 60,000 employees. The new entity will be headquartered in Nokia's home country of Finland, but owned on a 50-50 basis by both corporate parents.

A tie-up of rivals Alcatel and Lucent agreed in April spurred talk of more possible mergers and partnerships between infrastructure gear makers, who have come under increasing pressure from Asian rivals like Huawei.

(2006-06-22 13:24:14 SGT) [Biz] Permalink

US oil defends record profits

news.yahoo.com :

Top executives at three big U.S. oil companies defended record profits as necessary to finance future investment, and one cautioned that summer gasoline pump prices could go higher with hurricane season underway. Major oil companies, including Exxon Mobil, Chevron, ConocoPhillips, collectively earned well over $100 billion in profits last year, sparking outrage among consumers and some lawmakers. Prices at the pump, already up due to tensions in the Middle East, soared last year after Hurricanes Katrina and Rita disrupted U.S. Gulf coast oil and gas production. The industry is gearing up for another predicted busy Atlantic hurricane season this year after a record 28 tropical storms in 2005.

Shell Oil Co. President John Hofmeister said more attention was needed to developing additional fuel sources. "We're investing to grow, but it takes time and it takes investment and it takes access to places to invest to produce more oil and gas," he said.

Chevron's O'Reilly defended the industry's profits as in the middle range of other industries. "I think this there's a perception that this is an extremely profitable business long term, and over the long-term cycle it has not been profitable," he said. "The return on capital and return on sales were very modest."

(2006-06-22 13:22:12 SGT) [Energy] Permalink

Malaysia may raise natural gas prices

channelnewsasia.com :

Malaysia will consider raising the price of subsidised natural gas to relieve some of the pressure on state-owned firm Petronas. Energy Minister Lim Keng Yaik said that Petronas, which has asked for a hike, is under "tremendous stress" to meet domestic demand for gas at the subsidised rate. Petronas is currently supplying gas at 6.40 ringgit (US$1.76) per million British thermal units (mbtu), well below the market price of 14 to 18 ringgit per mbtu.

Petronas has supplied processed gas to Malaysia's debt-ridden utility giant Tenaga Nasional and independent power producers at the subsidised rate since 1997. Last month, the government increased electricity rates for the first time in nearly a decade because of rising fuel costs.

(2006-06-22 13:09:21 SGT) [Energy] Permalink

British energy company sparks concern over Indian outsourcing

channelnewsasia.com :

India has reaped the benefits of foreign companies switching jobs and resources to the country over the last five years. But a recent decision by power company Powergen - a British subsidiary of German energy supplier E.ON - has pointed towards a potential backlash.

Powergen has announced that call centres in India would no longer be answering telephone calls from its customers owing to complaints about the poor standard of staff service. Trade union Amicus described the move as "a welcome vote of confidence" in British workers and cited rising local wages in India and problems of long-distance management as key reasons behind the announcement.

(2006-06-22 13:03:32 SGT) [Biz] Permalink

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