Laos will shortly begin supplying Singapore with electricity under the Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP).
Vientiane Times reported on Monday that a total of 100 MW will be supplied by Laos to Singapore as a trial run.
The power purchase agreement was signed in Vientiane Capital on Friday by Managing Director of the Lao state-owned Electricite du Laos (EDL) Chanthaboun Soukaloun, and Executive Director of Keppel Infrastructure Holdings, Janice Bong.
The ceremony at which the agreement was signed was attended by Lao Minister of Energy and Mines Daovong Phonekeo, Deputy Minister of Finance Phouthanouphet Saysombath, Singapore’s Ambassador to Laos Leow Siu Lin, government officials and representatives of the two parties.
Singapore announced it would trial the import of electricity from Laos via Thailand and Malaysia in September last year following an agreement between Keppel Electric and Electricite du Laos (EDL).
In 2014, Laos, Thailand, Malaysia and Singapore had explored the idea of trading power beyond neighboring countries through the ASEAN Economic Community (AEC) and ASEAN Power Grid (APG), according to EDL Director, Chanthaboun Soukaloun.
“At first, this was only an idea, a vision, a dream, and a goal to strengthen the power integration network within the region,” Chanthaboun said.
In September 2016, Laos, Malaysia and Thailand inked the Laos-Thailand-Malaysia (LTM) Agreement in Kuala Lumpur that would pave the way for multilateral trade in electricity.
The project was a symbol of the good cooperation between EDL, Electricity Generating Authority of Thailand (EGAT) and Tenaga Nasional Berhad (TNB) of Malaysia.
“Today, we have reached our further goal of implementing the Laos, Thailand, Malaysia, and Singapore (LTMS) project that will see power reach Singapore,” he said.
Chanthaboun said he believed this project will be another remarkable milestone for the larger goal of realizing the ASEAN Power Grid in the near future.
“Now, after working together for many years, we challenge ourselves to be the first four countries in the ASEAN region to purchase and sell power beyond the borders,” he said.
Laos had been in talks with Myanmar in 2016 regarding joining the “ASEAN Power Grid,” seeing potential for energy trade along the 350-kilometer border between Myanmar and Laos.