Cambodia and fossil gas

From Global Energy Monitor

Cambodia is Southeast Asia's second smallest country by land area. Cambodia's oil and gas industry is at the earliest state of growth in Southeast Asia. [1] According to the World Bank, Cambodia's economy grew 8% annually on average between 1998 and 2018.[2] Approximately 93% of Cambodia had access to electricity at the end of 2019, with a goal of 100% electrification by 2020.[3]

As Cambodia's energy demand continues to grow, the country faces increasing power outages. Almost half of the country's power comes from hydropower and recent droughts have resulted in reduced power supply.[4] In an effort to diversify energy sources, the government of Cambodia announced in 2020 that no new hydropower dams will be developed on the Mekong River for the next 10 years.[5]

In 2019, Cambodia imported about 25% of its electricity, mainly from Vietnam and Thailand.[6]

This article is part of the Global Energy Monitor coverage of fossil gas
Sub-articles:
Electricity Demand

Cambodia's total installed power capacity increased from 231 MW in 2005 to 3,028 in 2019. Electricity generation increased from 9.7 GWh in 2005 to 12.015 GWh in 2019.[7]

Cambodia Power Generation by Source, 2018[8]

In the 2015 Power Development Plan, the base case projects an 8.8% compounded annual growth rate in electricity demand to 2030, reaching 18,000 GWh in 2030. Peak demand forecast of 3,256 MW in 2030, with 70% of it concentrated in the capital, Phnom Penh.[9]

Major Players

Cambodia Natural Gas Corp. Ltd (CNGC), established in 2015, is the country's primary gas operator. CNGC holds 30 year franchise rights of natural gas in Cambodia.[10]

Since Cambodia's oil and gas industry is at the earliest stage of development, the country has been receiving a lot of investment interest from foreign companies. Singapore-based Kris Energy constructed Cambodia's first offshore oil platform and is currently developing Block A of the Apsara oilfield in the Gulf of Thailand's Cambodian water.[11]

Canadian company, Angkor Resources, recently became the only resource company in the country to receive approval from the Royal Government of Cambodia for oil and gas claims.[12]

Mubadala Petroleum, a United Arab Emirates company, has also states their interest in investing in Cambodia's oil and gas sector.[13]

Energy Plan

The soon to be released energy plan by the Ministry of Mines and Energy plans for natural gas to generate up to 4,800 MW of power by 2030. Currently Cambodia does not have any gas plants. [14]

Natural Gas Demand

Key Demand Drivers

While natural gas is still in the earliest stage of development in Cambodia, the industrial sector has potential for natural gas usage as fuel.[15]

ERIA's energy outlook forecasts the industry sector growing at an average rate of 3.5% between 2015-2040 and residential and commercial sectors growing at an average rate of 2% between 2015-2040. [16]

Projection of Demand Growth

There are no projections of gas demand growth as of 2021.

Natural Gas Supply

As of early 2021, CNGC is the only buyer in Cambodia with an LNG import license.[17] In January 2020, Cambodia received its first import of LNG from Chinese firm CNOOC.[18] Approximately 83 mt of International Organization for Standardization (ISO) tank LNG from China was delivered via container ship in January but no further deliveries were made due to COVID-19 disruptions.[15] Until CNGC rents or purchases a FSRU, ISO tank imports are Cambodia's only short-term gas supply option.[17]

Potential New Gas Sources

Cambodia has six offshore blocks and nineteen onshore blocks.[19]

Current Gas Supply Projects

As of 2021, Cambodia does not have any domestic natural gas production. In late 2020, KrisEnergy extracted oil for the first time from the offshore Block A in the Gulf of Cambodia.[20]

CNGC Proposed Natural Gas Infrastructure Distribution Map[21]

Proposed Gas Supply Projects

In April 2016, the Cambodian government granted Petrochemicals Refinery Ltd permission to conduct two feasibility studies to explore constructing a network of oil and gas pipelines across Cambodia. The first pipeline would be an offshore oil pipeline from the Gulf of Thailand to the Preah Sihanouk province. The second onshore pipeline would run across seven provinces: Preah Sihanouk, Kampong Speu, Phnom Penh, Battambang, Siem Reap, Kampong Cham and Kandal.[22]

CNGC has a 15 year plan from 2020 to 2034, divided into three five year phases, that outline investments and infrastructure construction of natural gas in the country. These plans include building a LNG receiving terminal, 27 urban LNG multi-function stations, a LNG trucking fleet, and 2,825km of pipelines to supply 25 provinces and cities.[23]

CNGC's Phase I plan, including the build-out of pipelines into the inland city of Phnon Penh city, has been delayed due to pandemic disruptions. CNGC plans to introduce LNG in commercial sectors, such as hotels and restaurants, and eventually industrial and power sectors.[15]

In October 2020, a senior official from the Ministry of Mines and Energy indicated that the time frame for the feasibility study for CNGC's receiving terminal, LNG pipeline, re-gasification plant, and trucking network had been delayed due to COVID-19.[7]

Table 1: Proposed LNG Import Terminals in Cambodia
Project Name Location Capacity Expected Commencement Date Sponsor Project Status Main Users
Cambodia LNG Project 2023[15] Cambodia Natural Gas Corp. Proposed
Table 2: Proposed Natural Gas Projects in Cambodia
Project Name Location Capacity Expected Commencement Date Sponsor Project Status Main Users
400 MW Kandal HFO/LNG (Duel Fuel) Power Plant Project Lvea Aem District, Kandal[24] 200 MW Started generation with HFO December 2020[25] Electricite du Cambodge Under construction; duel fuel capability - initially will operate on heavy fuel oil and will switch to LNG when infrastructure is available[26]


4800 MW LNG-fired Power Plant[27] 4 x 1200 MW 2027-2030 Proposed

Projection of Gas Production

As of 2021, Cambodia does not produce any indigenous natural gas.

Articles and Resources

References

Related GEM.wiki articles

External resources

External articles

  1. "Energy Demand Fueling Southeast Asia's Emerging Oil and Gas Industry". Investing News Network. 2020-01-13. Retrieved 2021-01-26.
  2. "World Bank - Cambodia Overview". Retrieved January 27, 2021.
  3. "Nearly 93 pct of Cambodia's villages have access to electricity: ministry - Xinhua | English.news.cn". www.xinhuanet.com. Retrieved 2021-01-27.
  4. Hutt, David (2019-12-02). "Cambodia struggles to keep the lights on". Asia Times. Retrieved 2021-01-27.
  5. "Cambodia Announces Ten Year Moratorium On New Mekong Dams". OOSKAnews. 2020-03-24. Retrieved 2021-01-27.
  6. Thul, Prak Chan (2020-03-18). "Cambodia halts mainstream Mekong River dam plans for 10 years - official". Reuters. Retrieved 2021-01-27.
  7. 7.0 7.1 "Liquefied natural gas plans up in the air thanks to Coronavirus". Khmer Times. 2020-10-12. Retrieved 2021-01-26.
  8. "Introduction to Electricity in Cambodia". Cambodian Economy. 2019-08-28. Retrieved 2021-02-12.
  9. "Cambodia Energy Sector Assessment, Strategy, and Road Map" (PDF). Asian Development Bank. December 2018. Retrieved January 27, 2021.
  10. "About Us > CNGC Profile - CAMBODIAN NATURAL GAS CORP., LTD". www.cngc-kh.com. Retrieved 2021-01-26.
  11. "KrisEnergy begins production from Cambodia's first offshore oilfield". www.offshore-technology.com. Retrieved 2021-01-26.
  12. "Angkor Receives Approval for Cambodian Oil and Gas Concession | INN". Investing News Network. 2019-08-13. Retrieved 2021-01-26.
  13. Vireak, Thou. "UAE firm sets sight on oil in Kingdom". www.phnompenhpost.com. Retrieved 2021-01-26.
  14. "Cambodia's Latest Energy Plan to Bring in More National Gas Power Plants". Construction & Property News. 2020-11-19. Retrieved 2021-01-26.
  15. 15.0 15.1 15.2 15.3 "Analysis: COVID-19 delays Cambodia's LNG ambitions after initial imports from China | S&P Global Platts". www.spglobal.com. 2020-10-01. Retrieved 2021-01-27.
  16. "Energy Efficiency and Conservation Master Plan of Cambodia" (PDF). ERIA. Retrieved January 27, 2021.
  17. 17.0 17.1 "China launches small-scale LNG exports to Cambodia: Is there room for growth?". IHS Markit. 2020-03-19. Retrieved 2021-01-27.
  18. "Cambodia imports liquefied natural gas from China - China.org.cn". www.china.org.cn. Retrieved 2021-01-26.
  19. Strangio, Sebastian. "Cambodia Announces Game-Changing Crude Oil Extraction". thediplomat.com. Retrieved 2021-01-26.
  20. Kunmakara, May. "Cambodia extracts 'first drop of oil', marking start of production". www.phnompenhpost.com. Retrieved 2021-01-26.
  21. "CNGC Natural Gas Infrastructure Distribution Map". CNGC. Retrieved January 27, 2021.
  22. Staff, Post. "Firm to study proposed gas pipeline routes". www.phnompenhpost.com. Retrieved 2021-01-26.
  23. "Business Investment Opportunity with CNGC - CAMBODIAN NATURAL GAS CORP., LTD". www.cngc-kh.com. Retrieved 2021-01-26.
  24. "400 MW Kandal HFO/LNG Power Plants Project - Liquefied Natural Gas Power Plant - Details on ZAWYA MENA Edition". www.zawya.com. Retrieved 2021-01-26.
  25. "Cambodia's 200 MW dual-fuel power plant project successfully generates power-Seetao". www.facebook.com. Retrieved 2021-01-26.
  26. "200 MW engine power plant will help meet Cambodia's electricity demand". Off Grid Energy Independence. 2019-07-02. Retrieved 2021-01-26.
  27. "Current State of Cambodia's Electricity Demands and Supply Outlook" (PDF). Retrieved February 11, 2021.