2004 Achievement Report

International Project for Increasing
the Efficient Use of Energy
International Project for Improving Infrastructure
for the Efficient Use of Energy(Programs for Promotion of Energy Conservationin Major Industries in ASEAN Countries)

Report on the Results

March, 2005

The Energy Conservation Center, Japan

Preface
Recently, efforts to prevent global warming have been recognized as a challenge to be shared by
all humankind, while sustainable development of economy has been sought for. Mankind isfacing with the challenge of overcoming the two different conditions entirely conflicting eachother.
In order to get over these severe conditions, what are required are technical innovations such astechnologies to use energy efficiently with as little burden on the environment as possible andthe development of energy having little impact on the environment, etc.
In order to contribute to the balanced development of economy and environment in developing
countries, it is necessary to render support that is adoptable and appropriate to the respective
countries concerned based on the understanding of the actual condition of their energy use andenvironmental measures and on the results of in-depth surveys on the progress in developmentof infrastructure, living habits, etc.
Under the mentioned circumstances, we advanced to and worked on a new stage in this project
this year that aimed to strengthen the infrastructure for implementing and promoting energy
audits and improvement plans, on the strength of the achievements of the energy audits andenergy audit skills transfer programs that we implemented in 10 ASEAN counties regarding one
selected industry per country during the past 4 years.
For an effective tool to help achieve such an aim, we set out to create the Technical Directoryand Database/Benchmarks/Guidelines by business category.
In the meanwhile, as the activities to strengthen the infrastructure for the mentioned
implementation and promotion, we conducted follow-up surveys on the factories that were
subject to energy audit in the past to check the progress in the practice of the recommended
improvement plans and also simplified energy audits in other factories to ensure the transfer ofenergy audit skills. In 2004, the factories that received our follow-up survey and short energy
audit included that of the ceramic industry in Vietnam, a hydraulic power station in Laos, atextile factory in Malaysia and refineries in Myanmar. Furthermore, we held seminar andworkshop in each country, inviting people from factories of different categories of industries incountries other than the host country to make a report on their successful energy conservation
cases so that information could be shared in the ASEAN region and the foundation of promotion
activities could be provided. In the seminars and workshops, the concept and development
policy regarding the creation of the Technical Directory and particularly database by category ofindustry were discussed.
We believe it is very meaningful that as the result of the activities for the first year of the newstage in the project, we could achieve the above objectives and give direction to promotion ofenergy conservation in the new stage.
We hope that this project will contribute to energy conservation in the industrial sector andenvironmental protection in the respective ASEAN countries so that they can eventually achieveenvironment-friendly and sustainable development in economy and also that this project willserve as a bridge of technical exchange and friendship between Japan and the countries
concerned.
March, 2005
The Energy Conservation Center, Japan

Contents
Preface
SummaryI.

Purpose and Background of the Project......................................................................Ⅰ-1

II.
1.
2.

Vietnam (Ceramic Industry)........................................................................................Ⅱ-1
Outline of Activities....................................................................................................Ⅱ-1
Latest Situation of Energy Conditions and Industries in Vietnam ..............................Ⅱ-2
2.1 Energy Situation in Vietnam .................................................................................Ⅱ-2
2.2 Energy Outlook in Vietnam ..................................................................................Ⅱ-3
2.3 Situation in Vietnam..............................................................................................Ⅱ-6
3. Follow-up Survey on Hai Duong Porcelain Company Factory ..................................Ⅱ-8
3.1 Outline of Hai Duong Porcelain Company Factory..............................................Ⅱ-8
3.2 Brief Review of the Results of the Previous Energy Audit...................................Ⅱ-9
3.3 Results of the Follow-up Survey on the Improvements Proposedin the Previous Energy Audit ..............................................................................Ⅱ-16
3.4 Barriers to the Promotion of Energy Conservation and Countermeasures .........Ⅱ-18
4. Walk-through Energy Audit on the Factory of Rang Dong Light Source &Vacuum Flask Company ...........................................................................................Ⅱ-19
4.1 Outline of Rang Dong Light Source & Vacuum Flask Company Factory..........Ⅱ-19
4.2 Walk-through Energy Audit and Proposed Improvements..................................Ⅱ-20
5. Results on Seminar/Workshop ..................................................................................Ⅱ-21
5.1 Summary .............................................................................................................Ⅱ-21
5.2 Results of Seminar/Workshop.............................................................................Ⅱ-21
5.3 Workshop (Discussions on the Policy of Establishing Database/
Benchmark/Guideline) ........................................................................................Ⅱ-23
Ⅲ. Laos (Hydropower Generation Industry) ....................................................................Ⅲ-1
1. Outline of Activities....................................................................................................Ⅲ-1
2. Latest Situation of Energy Conditions and Industries in Lao PDR.............................Ⅲ-2
2.1 Energy Situation in Lao PDR................................................................................Ⅲ-2
2.2 Situation of Industry in Lao PDR .........................................................................Ⅲ-4
2.3 Situation in Laos ...................................................................................................Ⅲ-5
3. Follow-up Survey on Nam Ngum Hydropower Plant.................................................Ⅲ-7
3.1 Outline of Num Ngum Hydropower Plant ............................................................Ⅲ-7
3.2 Summary of the results of the previous energy audit............................................Ⅲ-8
3.3 Results of the Follow-up Survey on the Improvements Proposedin the Previous Energy Audit .............................................................................. Ⅲ-11
3.4 Results of the Current Survey .............................................................................Ⅲ-14
4. Energy Audit on Factory of Textile 55 Co. Ltd.........................................................Ⅲ-17
4.1 Outline of Factory of Textile 55 Co. Ltd.............................................................Ⅲ-17
4.2 Analysis of the Current Condition and Results...................................................Ⅲ-18

4.3 Proposed Improvements and Expected Effects...................................................Ⅲ-20
5. Results on Seminar-Workshop..................................................................................Ⅲ-21
5.1 Summary .............................................................................................................Ⅲ-21
5.2 Discussions on the Results of the Survey (Barriers in Implementation/
Promotion of Energy Conservation Plans and Countermeasures) ......................Ⅲ-22
5.3 Discussions on the Policy of Creation of Technical Directoryfor Hydraulic Power Industry .............................................................................Ⅲ-22
5.4 Discussions on the Policy of Development of Database/Benchmark/
Guideline for Hydraulic Power Industry.............................................................Ⅲ-22
Ⅳ. Malaysia (Textile industry) .........................................................................................Ⅳ-1
1. Outline of Activities....................................................................................................Ⅳ-1
2. Latest Situation of Energy Conditions and Industries in Malaysia.............................Ⅳ-2
2.1 Energy Situation in Malaysia................................................................................Ⅳ-2
2.2 Situation of Industry in Malaysia..........................................................................Ⅳ-3
2.3 Situation in Malaysia ............................................................................................Ⅳ-9
3. Follow-up Survey on AMDB Factory in Taiping...................................................... Ⅳ-11
3.1 Outline of AMDB Taiping Factory .....................................................................Ⅳ-11
3.2 Summary of the Results of the Previous Energy Audit.......................................Ⅳ-13
3.3 Results of the Follow-up Survey on the Improvements Proposedin the Previous Energy Audit ..............................................................................Ⅳ-14
3.4 Results of the Current Survey .............................................................................Ⅳ-16
3.5 Barriers to the Promotion of Energy Conservation and Countermeasures .........Ⅳ-17
4. Results of Seminar/Workshop...................................................................................Ⅳ-20
4.1 Summary .............................................................................................................Ⅳ-20
4.2 Discussions on the Results of the Survey (Barriers to Implementation/
Promotion of Energy Conservation Improvement Plans andCountermeasures) ...............................................................................................Ⅳ-21
4.3 Discussions on Policy of Developing Technical Directoryfor Textile Industry Use ......................................................................................Ⅳ-23
4.4 Discussions on Development of Database/Benchmark/Guideline......................Ⅳ-23
Ⅴ. Myanmar (Oil Refining Industry) ...............................................................................Ⅴ-1
1. Outline of Activities....................................................................................................Ⅴ-1
2. Latest Situation of Energy Conditions and Industries in Myanmar ............................Ⅴ-2
2.1 Energy Situation in Myanmar ...............................................................................Ⅴ-2
2.2 Situation of Industry in Myanmar .........................................................................Ⅴ-3
2.3 Situation in Myanmar ...........................................................................................Ⅴ-8
3. Follow-up Survey of Mann Thanbayakan Oil Refinery............................................Ⅴ-10
3.1 Outline of Mann Thanbayakan Oil Refinery ......................................................Ⅴ-10
3.2 Summary of The Previous Energy Audit ............................................................Ⅴ-10
3.3 Results of the Follow-up Survey on the Recommendations Madein the Previous Audit........................................................................................... Ⅴ-11
3.4 Results of the Current Survey .............................................................................Ⅴ-17
3.5 Barriers to Promotion of Energy Conservation and Countermeasures ...............Ⅴ-19

4.

Energy Audit on Thanlyin Oil Refinery....................................................................Ⅴ-20
4.1 Outline of Thanlyin Refinery..............................................................................Ⅴ-20
4.2 Results of Analysis of the Current Situation.......................................................Ⅴ-23
4.3 Recommendations for Improvement and Expected Effects................................Ⅴ-23
4.4 Improvements Completed...................................................................................Ⅴ-24
5. Results of Seminar/Workshop...................................................................................Ⅴ-25
5.1 Summary .............................................................................................................Ⅴ-25
5.2 Discussions on Results of Survey (Barriers to and Measuresfor Implementation and Promotion of Energy Conservation Measures) ............Ⅴ-28
5.3 Discussions on Policy for Creation of Technical Directoryfor Oil Refining Industry.....................................................................................Ⅴ-29
5.4 Discussions on Policy for Developing Database/Benchmark/
Guideline for Oil Refining Industry....................................................................Ⅴ-29
Ⅵ. Activities and Efforts as ASEAN................................................................................Ⅵ-1
1. Outline of Summary -Post Workshop .........................................................................Ⅵ-1
2. Discussions on Barriers and Countermeasures to Promotionof Energy Conservation in Industries........................................................................ Ⅵ-11
3. Discussion on Creation of Technical Directory for Each Industry
and Policy of Dissemination .....................................................................................Ⅵ-13
4. Discussions on Development of Database/Benchmark/Guideline
for Each Industry.......................................................................................................Ⅵ-15
Ⅶ. Technical Directory Created .......................................................................................Ⅶ-1
Ⅷ.

Reference Material .....................................................................................................Ⅷ-1
Materials on Seminar-Workshop of each country (Results on energy audits, Material
on achievements reported by ASEAN countries, Basic concept and content ofTechnical Directory (Japan), Database, Benchmarks and Guidelines (Japan))Materials on Summary-Post Workshop

Summary
ASEAN counties are continuing to achieve dramatic economic development and their energy
consumption is anticipated to increase rapidly from now on. It will become vital to use energy
more efficiently and to give sufficient consideration to prevention of global warming.
This project has entered its 5th year. ASEAN Center for Energy (ACE), our ASEAN counterpart
and people concerned of the respective ASEAN countries are engaged in more and moreenhanced and substantial energy conservation activities, thereby contributing to gradually
spread change in the consciousness of the people in ASEAN countries toward the reduction ofenergy consumption, particularly with the increases in energy price resulting from the recent
soaring crude oil prices and the Kyoto Protocol put into force in the background.
The current year was positioned as the first year of the 2nd stage for making serious efforts to put
into practice and disseminate the results we have made to date by combining all theachievements we made in the projects of the past 4 years and making further self-supporting
efforts. In other words, the 2nd stage aims to establish the infrastructure for implementing andpromoting practical improvements centered on improvement plans discussed and proposed in
the respective countries in the past, based on the achievements and results of energy audits
conducted on factories of 10 different types of businesses in all ASEAN countries over the past
4 years.
Specifically, the following activities were developed in 4 countries; Vietnam (ceramic industry),
Laos (hydraulic power generation), Malaysia (Textile) and Myanmar (oil refinery).
• Follow-up survey on the factories that underwent an energy audit in the past and shortenergy audits on newly chosen factories
Intended for understanding of the problems lying in carrying out and promoting
improvement plans and the development of improvement measures• Creation of Technical Directory
Intended to introduce effective technologies usable in ceramic/hydraulic power/textile/oil
refining industries in ASEAN countries and also successful cases of the utilization of therespective technologies for the purpose of information-sharing and enhancing the possibilityof implementation and dissemination of these technologies• Development of databases/benchmarks/guidelines
Intended to establish a scheme for setting numerical targets to advance energy conservation
activities and providing guide lines to achieve such goals
As an immediate task, the development of databases in 4 categories of businesses;
Ceramic/hydraulic power generation/textile/oil refining, is essential.
In the above mentioned countries, surveys including energy audits and seminars/workshops
were conducted. In the survey conducted in each country, guidance was given to the local
people concerned on the site again while the progress in their acquisition of energy audit skills
transferred from Japanese specialists in the past was confirmed so that technology transfer could
be further ensured. In addition, as it was found in the survey that some factories had notpracticed improvements as instructed, factors seemingly constituting impediments to the-1-implementation as well as solutions were discussed, which lead to create the clue for the
implementation and progress in the future.
In the seminar/workshop held in each country, in addition to the aforesaid discussions, people
from the governments and the factories including those of different categories of industry inother ASEAN countries (including people of the factories undergoing energy audit in the past)
were invited to join with the people of the factories of the countries concerned to report on theirrespective activities and the cases of practicing improvement plans. The seminar and workshop
held in each country had a large number of participants each, playing an important role in termsof information sharing and dissemination.
On-site activities of the project of the current FY year were commenced with Inception
Workshop held in late August 2004 (Same as the one for both Building and Energy Management
Infrastructure Development Projects) and topped off by Summary /Post Workshops conductedin early February 2005 (common with Building and Energy Management Infrastructure
Development Projects).
In the Inception Workshop, for the purpose of smooth launching of the project, the action plan
was explained and finalized, and preparations for the activities at site were confirmed among theparticipants. Following that, surveys and workshops in 4 countries were smoothly completed by
December 2004. In Summary Workshop/Post Workshop where delegates from ASEAN
countries (Focal Points) were present, reports on the activities and the results in the 4 countries,
including those on the ASEAN Benchmarking activities and the results, were made with theview to knowledge- and information-sharing, and discussions regarding the creation ofTechnical Directory and the development of database/benchmark/guideline for each country
were held. Finally, the policy for action plans for the project next year and in the future wasdiscussed.
Specific details of activities of the project for this year are as follows;
August 25-26, 2004 (Trip: August 24-27)
Participated in “Inception Workshop on Promotion of Energy Efficiency and Conservation(PROMEEC) (Major Industry, Building and Energy Management), SOME - METI Work
Program 2004 - 2005” (Venue: Denpasar of Indonesia, Same as the one for Building/Energy
Management Infrastructure Development projects)
Although delegates from Laos and Brunei were absent, about 20 people including delegates of
ASEAN countries, members of ASEAN Center for Energy (ACE) and Energy Conservation
Center, Japan (ECCJ), participated and had sessions as follows.
Opening address (Delegates of the countries subject to survey and the organizations concerned)
Session 1: Explanation and discussion on action policy for Phase-1 and Phase-2
Session 2: Presentation on “Japan’s cooperation in energy management in foreign countries”(ECCJ)
Session 3: Lessons learned from Phase-1 and expectations for Phase- 2 (ASEAN delegates)
Session 4: Program for energy management (ASEAN delegates)
Session 5: Explanation on and finalization by discussion of 2004-2005 action plan (ECCJ)-2-

October 25-29, 2004 (Trip: October 24-30);
On-site activities in Vietnam (Primary survey)
1. Follow-up survey on a ceramic factory surveyed in the past and short energy audit of a
newly selected glass factory
Surveys were conducted and reporting of the results and discussions were made in eachfactory.
2. Seminar-workshop in Vietnam
More than 120 people participated and were engaged in vigorous discussions and active
information exchange. The policy for creation of Technical Directory and the action policy
regarding the development of database/benchmark/guideline proposed by Japan wereapproved in principle from the participants. The seminar-workshop was concluded
successfully.
(1) Energy conservation policy and program (Vietnam and Japan)(2) Report on energy conservation cases by people concerned in major industries inVietnam and other ASEAN countries(3) Discussions on the policy regarding the creation of Technical Directory(4) Discussions on the action policy regarding the development of database in Vietnam
November 15-26 2004 (Trip: November 13-27);
On-site activities in Laos and Malaysia (Secondary survey)
1. Follow-up surveys on a hydraulic power station (Laos) and a textile factory (Malaysia)
surveyed in the past and a short energy audit of a newly selected factory (garment/Laos)
Surveys on the factories were conducted and reporting of the results and discussions weremade in each factory.
2. Seminar-workshop in each country
50-90 people participated in each country and were engaged in active informationexchange through vigorous discussions. The policy for creation of Technical Directory andthe action policy regarding the development of database/benchmark/guideline proposed by
Japan were approved in principle from the participants. The seminar- workshop wasconcluded successfully.
(1) Energy conservation policy and program (each country and Japan)(2) Report on energy conservation cases by people related to building in each hostcountry and other ASEAN countries(3) Discussions on the policy regarding the creation of Technical Directory(4) Discussions on the action policy regarding the development of database in each hostcountry
December 8-15, 2004 (Trip: December 7-16);
On-site activities in Myanmar (Thirdly survey)
1. A follow-up survey and a short energy audit on an oil refinery surveyed in the past and a
newly selected factory were conducted respectively and reporting of the results and

-3-

2.

discussions were made in the respective factories.
Seminar workshop in Myanmar
More than 50 people participated and were engaged in active information exchange
through vigorous discussions. The policy for creation of Technical Directory and the action
policy regarding the development of database/benchmark/guideline proposed by Japan
were approved in principle from the participants. The seminar-workshop was concluded
successfully.
(1) Energy conservation policy and program (Myanmar and Japan)(2) Report on energy conservation cases by people concerned in major industries in
Myanmar and other ASEAN countries(3) Discussions on the policy regarding the creation of Technical Directory(4) Discussions on the action policy regarding the development of database in Myanmar

February 7-9, 2005 ( Trip: February 6 - 10)
Summary Workshop /Post Workshop
Participated in “Summary Workshop and Post Workshop on Promotion of Energy Efficiency
and Conservation (PROMEEC) (Major Industry, Building and Energy management),
SOME-METT Work Program 2004-2005” (Venue: Singapore, same as the one for building andenergy management infrastructure development)
Although delegates from Brunei and Vietnam were absent, about 21 people including delegatesof ASEAN countries and members of ASEAN Center for Energy (ACE) and Energy
Conservation Center, Japan (ECCJ) participated and had comprehensive discussions on theitems given below. After reports on Technical Directory prepared by the 4 countries we visited
this time and on the policy regarding and the progress in the development of
Database/Benchmark/Guideline in each country were made, lively and active discussions were
held. Although we confirmed that it remained our future challenge to make more efforts toimprove mutual understanding of the specific ways of advancing these practical works, we
could earn high evaluations from ASEAN countries on the results of our activities for this year
and also gain agreement in principle on the policy for advancing the project in the years tocome.
Opening address (Delegates of the countries surveyed and the organizations concerned)
Summary Workshop
Session 1: Major industries- Activity report of this year/Results and evaluations- Planning of creating Technical Directory and Database/Benchmark/Guideline in eachcountry- Achievements in “ASEAN Benchmarking” and “Board of Judges” relating to therecognition system- Policy for approaches to be taken after next year.
Session 2: Buildings
Session 3: Energy management-4-Post Workshop
Session 1: Summary of discussions held in Summary Workshop for each project
Session 2: Basic implementation plan for years after next
In the current fiscal year, with an aim to support ASEAN countries in the establishment of a
firm foundation for developing continuous energy conservation activities, we improved the levelof our activities, requesting them to further make self-help efforts. As we could gain cooperationin our activities from all the participating countries, we successfully made significant results. On
the other hand, we recognized the necessity to gain further understanding of our improved
activities and build a system in each country so that they could fully respond to us. Thus, ourfuture task was clarified. At the same time, we appreciate such identification of our future issue
as a step forward in our activities, because it looked emerging when our project madesubstantial advance and results.
Finally, we hereby would like to thank all those at ACE along with the organizations andcompanies concerned in each country for their all-out cooperation.

-5-

Ⅰ. Purpose and Background of the ProjectThis project generally aims to contribute to the promotion of energy conservation andenvironmental protection in Southeast Asian countries by helping promote energy
conservation measures in the major industries in the countries concerned through providing
support for activities on the ASEAN with the view to promote and disseminate technologies
for the efficient use of energy in the major industrial fields.
This project was set up in 2000 with ASEAN Center for Energy as the core organization,with the aim of reducing ever-increasing energy consumption in the industrial sectors in the
ASEAN region. ASEAN call this project PROMEEC (Major Industries). PROMEEC is anabbreviation of “Promotion of Energy Efficiency and Conservation” and a cooperative
project with Ministry of Economy, Trade and Industry certified by the conference ofministers of energy-related ministries of 10 ASEAN countries. We are providing support forthe promotion of energy conservation in the industrial sectors of ASEAN countries in the
aspects of technology and management through the activities of the project.
The project has the following objectives;
1. To deepen and strengthen the cooperative relation between ASEAN countries andJapan in the energy field
2. To promote energy efficiency and energy conservation in the major industries in
ASEAN countries.
3. To promote transfer of energy-related technologies of Japan and the introduction ofgood practice cases of energy conservation.
4. To raise the quality level of ASEAN countries through energy audits and OJT forenergy audit
5. To create Database/Benchmark/Guideline for energy audit in ASEAN countries.
The current year is positioned as a very important year to determine the direction of theactivities to be developed in the second stage, with the understanding that this cooperative
project are advanced in the 3 stages based on the discussions held to date with ASEAN
countries including ACE. Through the activities we developed in all ASEAN countries byMarch 2004 in the first stage, we could build a foundation for developing energy
conservation activities on an equal footing with ASEAN countries.
1st stage:
Transfer of technologies and experiences from Japan to ASEAN countries(Completed in 2004)
2nd stage:
Japan-ASEAN joint implementation of improvement plans in each country
and promotion in other countries
3rd stage:
Promotion of energy conservation with independent efforts by ASEAN
countries
Starting in this year, we began to create a basis for advancing implementation andI-1

dissemination of energy conservation based on the prepared foundation. In short, ouractivities are centered at follow-up surveys on the factories that underwent energy audit in
the past, the creation of Technical Directory and the development of
Database/Benchmark/Guideline for each category of industry. In the current fiscal year, wedeveloped such activities mentioned above targeting the ceramic industry in Vietnam, thehydraulic power generation in Laos, the textile industry in Malaysia and the oil refining in
Myanmar.
In the respective countries, we conducted follow-up surveys on the factories that underwent
an energy audit in the past to grasp the progress and the issues lying in the implementationof improvement plans and also OJT-based simple energy audits of newly selected factories
jointly with local people involved. In addition, we held seminar- workshop in which we
invited instructors from factories of several categories of business in Japan and othercountries to introduce successful cases of implemented improvement plans and cases of
cutting-edge energy conservation technology to further raise the awareness of energy
conservation among ASEAN countries. The concept for promoting the creation of Technical
Directory and Database/Benchmark/Guideline for the use of each country and practicalpreparation activities were discussed and the future direction was determined. These
activities are intended to serve as the core work for establishing the foundation for
promoting energy conservation in the respective countries subject to the survey and toestablish networks to promote it to other countries.
In the end, we held Summary Workshop bringing together delegates of the respective
countries to share the results and achievements of the activities made in the respective
countries and to discuss the basic plan for future activities.

I-2

Ⅱ.

Vietnam (Ceramic Industry)

1. Outline of Activities
We conducted a follow-up survey on a company that underwent an energy audit in theprevious round (January 27 - February 1, 2002) and gave Seminar-Workshop in Vietnam(Hanoi) that included reporting on examples of energy conservation in various industries.
1.1 Period
October 25 - 29, 2004
1.2 Venue
Follow-up survey: Hair Duong City (60km northeast of Hanoi)
Walkthrough energy audit on a newly selected factory: Hanoi City
Seminar-Workshop: Hanoi City
1.3 Schedule
October 25 (Mon.):26 (Tue.):
27 (Wed.):28 (Thu.):
29 (Fri.):

Seminar-Workshop
Follow-up survey (Hai Duong Porcelain Company)
Walkthrough energy audit (Rang Dong Light Source And Vacuum
Flask Joint Stock Co.)
Meeting of Japanese staff and summary
Meeting about Technical Directory and Database/Benchmark/
Guideline in MOI (Ministry of Industry)

1.4 People Involved
ACE (ASEAN Center for Energy):
Mr. Christopher G. Zamora: Manager
Vietnam Focal Point: Ministry of Industry (MOI)
Mr. Le Tuan Phong:
Official on Energy and Environment, Science andTechnology Dept. (STD) Ministry of Industry
Technical experts from Japan:
Messrs. Hideyuki Tanaka, Fumio Ogawa, Motomu Ishikawa
Technical experts of International Engineering Dept.,
ECCJ

Ⅱ-1

2.

Latest Situation of Energy Conditions and Industries in Vietnam
Vietnam is endowed with diverse energy resources such as oil, gas, coal and hydro. Coalproven reserve is about 3.88 billion tons, 95% of which is accounted for by anthracite orgood quality coal. Brown coal or lignite is estimated at 37 billion tons, of which about 3-5
billion tons are located in less than 500 meters underground. Oil resource is estimated atabout 2.3 billion tons but proven oil reserve is estimated between 615 to 957 million tons.
The proven gas reserve is about 600 billion cubic meters, which is about 50% of the total gas
potential. Oil and gas are concentrated in the southern continental shelf. Hydropower
resources can generate about 300 billion kWh but only 50 to 70 billion kWh are feasible.

2.1 Energy Situation in Vietnam(1) Energy Production and Consumption
Crude oil production increased from 7.6 million tons from 1995 to 16.6 million tons in
2002. The production of washed coal almost doubled, from 8.35 million tons by 1995 toroughly 16 million tons by 2002. Electricity recorded the highest growth rate. Electricity
generation increased from 15.6 TWh in 1995 to 46.84 TWh in 2004, posting an averageannual growth rate of 13.7%.
As of December 2004, the total installed capacity of power plants was 11,360 MW. The
total electricity sold was about 39.70 TWh out of the total 46.84 TWh of electricity
generated.
In 2002, Vietnam exported 16.8 million tons of crude oil, nearly 6 million tons of coal andimported about 10 million tons of petroleum products.
(2) Vietnam Energy Plan (VEP) 2020
The country's long-term energy plan has firmed up programmes onto to 2020, which are
expected to develop and maximise the country's energy resources. The main objective is todiversify energy sources and to ensure energy security.
Under the VEP 2020, the projected annual supply of indigenous energy will come from thefollowing energy resources:
1) 25 to 30 million metric tons of anthracite coal per annum, of which 6-8 million tons willbe allocated for power generation;2) 25 to 30 million metric tons of crude oil per annum;3) 15 to 30 billion cubic meter of natural gas per annum, of which 12 billion cubic meter will
be for power generation; and
4) 50-60 billion kWh of hydropower per annum.
The country has other energy sources, such as nuclear and new and renewable sources ofenergy, which could provide long-term security of energy supply. Nuclear fuel is available.
The reserve of uranium deposits is about 300,000 MT of U308, of which nearly 50% is

Ⅱ-2economically viable for utilisation. New and renewable sources of energy are also available
such as geothermal, biomass, wood and agricultural by products, wind, solar andmini-hydro.
(3) Energy Efficiency and Conservation ProgrammeOver the planning period, energy efficiency and consservation will be given an importantrole in the energy economy. The Prime Minister of Vietnam signed the Energy Efficiency
Decree in September 2003. Current regulations and circulars to promote energy efficiency
include:1) Conduct of energy audit in designated factories;
2) Preparation of financial incentives/mechanism for energy efficiency programme; and
3) Classification of designated building to be undertaken by the Ministry of Construction.
Some programmes on E&C that have been implemented were:- Demand-side management phase I completed in 2003;- Capability building on DSM for EVN personnel;- Load research and load management;- Lighting pilot programme;- Standard and labeling programme which have set up two MEP standards on lighting andmotor and submitted to government for approval;- Formulation of Building Code;- Design of energy efficient street lighting and formulation of EE programme for small andmedium enterprises;- Survey of 60 buildings for ASEAN energy benchmarking project; and- Participation in SOME-METI Work Programme on PROMEEC – Projects.
The on-going EE&C programmes are as follows:- Formulation of detailed plan of action to smoothly implement the Energy Efficiency
Decree of Vietnam;- Implementation of DSM Phase Ⅱ from 2003 to 2007 funded by World Bank/Global
Enviroment Fund;- Commercial pilot EE programmes starting from 2004 to 2007 also with funding support
from WB/GEF;- EE for SME which will be implemented from 2004 to 2008 (2009) funded by WB/GEF;- Promotion of energy efficient public lighting programme; and continued participation and- Support to the PROMEEC projects of SOME-METI.
2.2

Energy Outlook in Vietnam(1) Energy Demand- Supply Forecast 2010-2020
Vietnam is expected to achieve an annual average economic growth rate of between 7.0 -Ⅱ-3

7.5% onto 2010 and about 7.0% from 2011 to 2020. The agricultural sector's share will
gradually shrink in the national economic mix, from 23% to 11 % by 2020, whereas theindustrial and service sectors will increase from 38.5% to 44%.
In 2010, the total commercial energy consumption of the country will reach about 28-32
million tons of oil equivalent (TOE). Coal will account for 18%, oil and gas 57% andelectricity 25%. The annual average growth rate of energy will be between 8.8%-10.4%.
By 2020, Vietnam's total commercial energy demand will reach about 53 to 63.6 Mtoe.
Coal, oil and gas, and electricity will have a share of 15%, 56%, and 29%, respectively.
During the 2010-2020 periods, the annual average growth rate of energy demand is
projected at 6.6% - 7.1 %.
In the consumption mix, industry will remain the largest energy consumer. Its share will
increase from 38% in 2001 to 42% and 47% in 2010 and 2020, respectively. The
transportation sector will account for about 35% by 2010 and then decrease slightly to 33%
by 2020. The energy demand for household activities will gradually decrease from 23% in2001 to about 19.4% and 17.6% in 2010 and 2020, respectively. Although energy resourcesin Vietnam are relatively abundant and diverse, the country is likely to experience a
shortage in domestic energy supply after 2015. Therefore, Vietnam has to develop newenergy resources and import energy.
(2) Energy Development Thrusts in 2010-2020
During the 2010-2020 planning period, the Government of Vietnam shall pursue thefollowing policy directions for the energy sector:
1) Develop various resources of energy; satisfy energy demand for socio-economic
development, and security and defense in the whole country and territories;2) Diversify supply of energy, give priority to development of domestic energy resources, try
to ensure energy independency, and at the same time, pay due attention to regional
cooperation on energy;3) Control and mitigate environmental pollution in view of ensuring the stability andsustainability in socio-economic development;
4) Formulate policies for a competitive energy tariff geared towards the establishment of anenergy market;
5) Formulate investment policies and incentives for energy development. Diversify
investments in the forms of BOT, BTO, BT JV, and IPP and so on, in order to mobilise
various capital sources at home and abroad;6) Formulate policies for rural and mountainous areas;
7) Formulate energy, science and technology policies.
(3) Policies and Measures for Energy Security
During the 2015-2020 planning period, crude oil exploitation in Vietnam is projected toreach 25-30 million tons. In 2020, the demand for oil products is projected at about 27-30
million tons. Coal demand is projected to reach 35-40 million tons by 2020, of which 5-10

Ⅱ-4

million tons will be imported to satisfy burgeoning domestic coal demand supply.
A total of 31,616 MW in installed generating capacity will be implemented during the
2001-2020 planning period, broken down as follows (Table Ⅱ-2-1):
To reduce dependence on imported energy and to ensure energy security, the policies ofVietnam are as follows:
1) Further search for substitute energy resources. Intensively explore gas fields to meet the
exploitation capacity of 20 billion m3, promote joint exploration and development ofbrown coal mining technology in the Red River Delta;2) Import electricity, petroleum, gas and coal of different sources;
3) Develop nuclear power, new and renewable energy.
Table ∐ -2-1 Power Generating Capacity by YearYear

Capacity

2001−2005
2006−2010

6,432MW
6,432MW

2011−20152016−2020

8,152MW
10,600MW

2001−2020

31,616MW(4) Power Sector Policies up to 2010
1) To accelerate the pacing of implementing projects, to allow EVN to skip the step of
elaborating pre-feasibility study reports of power source and grid projects;2) To allow EVN to appoint domestic consultancy agencies to act as main consultants for
power source and grid projects. In case of complicated issues, EVN may sign contracts tohire foreign consultancy agencies;3) The Ministry of Industry shall coordinate with the Ministry of Finance in studying andsubmitting to the Prime Minister mechanisms providing partial budget capital support forinvestment in power sources and grids in service of economic and social development inremote and rural areas; allocating capital for renewable energy sources in areas where
national power grids do not exist; and separating EVN's public utility activities from its
production and business activities;4) Commercial banks shall be allowed to provide EVN with a loan exceeding 15% of theirown capital for investment in electricity projects deemed efficient and whose feasibility
study reports have been approved by competent authorities;5) The provincial/municipal People's Committees must closely coordinate with the Ministryof Industry, EVN and others investors in settling the compensation for ground clearance
and population resettlement related to power source and grid projects in accordance withschedules approved by competent authorities.

Ⅱ-5

The Government encourages domestic and foreign investors to participate in theconstruction of power source and power grid projects in various forms, such as independent
power producers (IPP), build-transfer (BT) contracts, buildoperate-tranfer (BOT) contracts
and jointventure or joint-stock companies.
2.3 Situation in Vietnam(1) General condition- Area:- Population:- Religion:- System of government:- Economy:- Economic overview:329,241km2
About 82,060,000 (as of October 2004)
Population growth rate: 1.18% (2003)
Buddhism (80%), Catholic, Cao Dai, etc.
Socialist Republic
Major industries:
Agriculture, Forestry and
Fishery and Mining
Per capita GDP: US$ 483 (2004 IMF data)
Economic growth rate: 7.6% (provisional figure for
2004)
Currency: Dong, US$1 = 15,740 Dong (December
2004)
Although the nation’s economy has continued to growat a rate of around 7% since 2000, there are factors forconcern such as chronic trade deficit, immatureinvestment environment, etc.

(2) Energy situation in Vietnam
Energy supply and consumption in Vietnam are shown in Figure Ⅱ-2-1. Renewal energy(RE, mainly biomass energy) consists of a large portion of the total primary energy supply,
followed by oil and coal. Vietnam produces oil and coal and exports 97% and about 40% of
oil and coal productions respectively. For petroleum products, 60% of the oil export isreverse-imported (2002). Residential and commercial consumption consists of the largest
portion of the energy use, followed by industry and transportation sectors. As the nation is
expected to be industrialized at a rapid pace, approaches based on energy conservation
should be taken from the outset.

Ⅱ-6

Total Primary Energy Supply(Excluding of use for Power
plant, Oil refinery, etc.)

Total Final Consumption

Industry
SectorTransport
SectorResidential
Commercial,etc.
Non-energy
use

Coal
Oil
Gas
Biomass
Electricity

Primary Energy Supply
Coal
Oil
Gas
Biomass
Electricity
Total(ktoe)
4017
8756
19
22484
2586
37862

Total Final Consumption (ktoe)
Industry Sector
6001
Transport Sector
4969
Residential, Commercial, 26716
Non-energy use
176
Total
37862

%
10.6
23.1
0
59.4
6.9
100

Figure Ⅱ-2-1 Vietnam - Energy Balance in 2002
（Source: IEA Energy Balance - Edition 2004 -）

Ⅱ-7

%
15.8
13.2
70.6
0.5
100

3.

Follow-up Survey on Hai Duong Porcelain Company Factory

3.1 Outline of Hai Duong Porcelain Company Factory(1) Company profile
Address:
Company form:
Capital:Production item:
Production output:
Sales amount:
No. of employees:
Average salary (direct worker):
Working hour:

Pham Ngu Lao Str, Hair Duong City, Vietnam
State-Owned Company
Government 10 billion VND, Bank 3 million VND
Pottery and porcelain
24 million pcs/y
US$ 4 million
950
960,000 VND (USS$ 90)
7:00 – 17:00(2) Production process of pottery and porcelain
Law material → Crushing → Blending → Fine grinding (wet process) → Dehydration →Kneading → Forming → Drying → Rough finish → Glazing→ Glost firing (1350°C) →Decoration → In-glaze Firing (915°C) → Inspection → Packing → Shipping(3) Major equipment and capacity
Major equipment and their capacities are shown in Table Ⅱ-3-1.
Table ∐ -3-1 Major Equipment and Capacity

Equipment
Electric installation
BoilerKiln for firing
Kiln for china painting (periodic
kiln, single-crucible kiln)
Kiln for china painting(Roller hearth kiln: RHK)
10 m3 Shuttle kiln
4.7 m3 Shuttle kiln

EnergyElectricity
Coal
Coal
Electricity

Rating90,755 kW
3.2 t/h–496 pieces/firing

LPG

1,230 pieces/ firing

LPG
LPG

3,500 pieces/firing
1,800 pieces/firing(4) Status of energy use
Energy use condition is shown in Table Ⅱ-3-2.

Ⅱ-8

Table Ⅱ-3-1 Status of Energy Use

EnergyDiesel oil
LPG
Natural gas
Coal

Quantity consumed
2000
2001
25.2t
25.5t
251.8t799.1t647,623m3
594,160m3
4,407t
4,736tUse
Power generator
Porcelain firing kiln
Glass firing kiln
Porcelain firing kin

3.2 Brief Review of the Results of the Previous Energy Audit
The purpose of the previous energy audit was to accurately know heat balance of the heatequipment, in other words, what quantity of heat comes in from where and how much of it
is used for what purpose. The next purpose was to know based on the results of the audit
which equipment to focus on to get significant effects in energy consumption.
For these purposes, we obtained heat balances of the heat equipment such as the tunnel kiln
for firing of pottery and porcelain (glost firing), the shuttle kilns and the roller hearth kiln
(RHK) for firing again of the decorated products, and proposed energy conservation plans
based on the results of such calculations.
In addition, we gave guidance in the points of improvement in the current firing control andfiring technology, which will lead to energy conservation.
The results of the survey and points of improvement are given below.
(1) Heat balance
The results of the tunnel kiln and the RHK for firing, and those of the shuttle kilns areshown in Table Ⅱ-3-3 and Ⅱ-3-4 respectively.

Ⅱ-9

Table Ⅱ-3-3 Heat Balance of Tunnel Kiln and Roller Hearth Kiln
Kiln typeHeat type
Heat
Combustion heat of fuel
Input
Heat gained from unfired objects
and saggers
Heat gained from unfired
objects
Heat gained from saggers
Heat gained from kiln carts
Heat gained from refractory part
Heat gained from iron part
Total
Heat
Heat carried away with fired
Output objects and saggers
Heat carried away with fired
objects
Heat carried away with saggers
Heat carried away with kiln cars
Heat carried away withrefractory part
Heat carried away with iron part
Heat carried away with cooling air
Heat carried away with combustion
exhausts gas
Heat losses due to radiation/
conduction and others
Total
Effec- Effective heat per 1 ton of fired
tive
products
heat
Heat consumed for firing of
unfired objects
Effective heat per 1 ton of fired
products including saggers
Heat consumed to heat saggers
Heat efficiency for fired products only
Heat efficiency for fired products including
saggers

Chinese-madeTunnel Kiln
Heat quantity%
3
7,387.2 × 10
99.8
0
0

(Unit: kcal/t)Roller Hearth Kiln
Heat quantity
836.0 × 103
3.4

%
99.6
0.4

0

0

2.1

0.2

0
13.1
12.3
0.8
7,400.3 × 103
8.0

0
0.2
0.1
0.1
100
0.2

1.3
–
–
–
839.4 × 103
23.8

0.2
–
–
–
100
2.8

3.1

0.1

6.2

1.9

4.9
144.4
141.1

0.1
2.0
1.9

7.6
–
–

0.9
–
–

3.3
1,732.6
1,772.8

0.1
23.3
24.0

–
295.0
442.0

–
35.1
52.7

3,742.5

50.5

78.6

9.4

7,400.3 × 103 100
457.5 × 103

839.4 × 103
100
3308.2 × 10

457.5

308.2

1,188.5

395.9

731.0
6.2%
16.1%

87.7
36.9%
47.4%

Ⅱ-10

Table Ⅱ-3-3 Heat Balance of Shuttle Kilns
Kiln typeHeat type
Effec- Effective heat per 1 batch of fired
tive
products
heat
Heat consumed for firing of
unfired objects
Effective heat per 1 batch of fired
objects including slabs
Heat consumed to heat slabs
Heat efficiency for fired products only
Heat efficiency for fired products
including slabs(Unit: kcal/t)
Shuttle Kiln
(4.7m3)

Shuttle Kiln
(10m3)
321.9 × 103kcal/batch

165.6 × 103kcal/batch

321.9

165.6

748.6

384.2

426.7
5.3%

218.6
5.8%

12.2%

13.4%

(2) Suggestions for improvement in energy conservation
1) Chinese-made tunnel kiln
a. Reduce the amount of radiation heat from the kiln surface.
In the heat balance shown above, “heat loss from radiation/conduction and others” makes
up the largest portion of the total heat loss, accounting for 50.5%. This means that mostof the heat is lost through diffusion from the surface of the kiln.
Accordingly, it is recommendable to lay insulating material on the surface of the kiln as
reducing such heat loss will bring about significant effect of energy conservation (Figure
Ⅱ-3-1).

Ceramic board(50mmm thick)
Products tobe fired
BurnerKiln carFigure Ⅱ-3-1 Cross-section View of Tunnel Kiln

Ⅱ-11

b. Reduce the amount of heat going out with combustion exhaust gas.
Reducing the “amount of heat escaping from stacks”, which makes up the second largest
portion of the total heat loss, leads to energy conservation. In order to achieve it, it isnecessary to keep an appropriate quantity of sand in the sand channel mentioned in itemd. below and the in-kiln pressure at the area of the first burner entering the reducing
flame at a level of ±0mmH2O.
c. Introduce the process of biscuit firing
As the firing temperature of Roller Hearth Kiln (RHK) for over-glazed decoration(915°C) is about at the same level as the temperature of biscuit firing of the normal
process of producing pottery and porcelain and RHK has sufficient installation capacity,
biscuit firing using this RHK before the step of glazing will improve the condition of theglazed surface and the whiteness of the fired objects, thereby upgrading their grade andquality.
d. Renew the sand for sand sealing and maintain an appropriate quantity of sandIn the firing of pottery and porcelain under the reduction condition, one of the key points
for improving production yield is to stabilize the atmosphere in the kiln. One of theconditions disturbing this stabilized atmosphere is the air invading into the kiln from thebottom of the kiln cars due to the insufficient sand sealing caused by shortage of sand.
Under the present condition, as the amount of the sand is not enough and the size ofparticles is too small, all sand in the kiln should be replaced with rougher-grained sand
(3~5 mm in diameter) (Figure Ⅱ-3-2).

Car apron

Sand channel

Figure Ⅱ-3-2 Sand Channel

e. Put bricks (60~100mm height) on the bricked top of the kiln car to make clearance
between the top of the car and saggers so that combustion gas can come in easily.
By doing so, the temperature of the bottom stage of saggers on the kiln car will rise,
narrowing the gap in temperature between the upper and lower levels and thereby
improving the condition of firing dramatically (Figure Ⅱ-3-3).

Ⅱ-12

Saggers

BricksBricked car top

Figure Ⅱ-3-3 Kiln Car

f. Keep a regular height of the saggers of each kiln car
The uniformed sagger height will stabilize gas flow in the kiln and thus stabilize theatmosphere and temperature. In short, it will improve production yield (Figure Ⅱ-3-4).

Figure Ⅱ-3-4 Height of Saggers

g. Set up an exit door of the kiln
If the kiln has no door, cold air will come into the kiln and disturb the atmosphere of thefiring zone. Particularly, the maximum temperature will fluctuate and may cause change
in color (yellow color) of the lower products at the center of the kiln. Setting up of a door
is highly recommendable.

Ⅱ-13

1200

(mmH2O)

Pressure in kiln

Heat curve

0.4

1000

0.2

800

Pressure

Firing temperatureh. Too short firing time from the entrance to reducing flames (14 hours up until 1050°C)
This short firing time will bring about a big gap between the highest and lowest
temperatures later and cause change in color (yellow color) of products as in term g.
above.
In addition, as such uneven firing will result in bad quality of products; it isrecommendable to extend this pre-reduction time from 14 hours to 19 hours. By
introducing this method, although the time from 1,050°C to the maximum temperature
will be shortened by 5 hours compared the present method; this improvement is highly
recommendable because it will cause no defect in products and difference in the highest
and lowest temperatures.
However, the firing time should be changed gradually over 3 months or so while the stateof products are carefully checked each time (Figure Ⅱ-3-5).

0

600

- 0.2

400

Oxidation(°C) 200

Reduction

- 0.4

Time
Exhaust gas

Remainingheat

Cold airF

F

F
EntranceO O

R R R R R R R R R R R R Burner

O O

O O ×× R R R R R R R R

ExitStop heating

Figure Ⅱ-3-5 Heat Curve and Pressure in Kiln
2) Roller Hearth Kiln
a. Keep the pressure value in kiln positive
As the pressure in the kiln is currently minus in general, the damper for combustion
exhausts (exhaust damper of stack) should be narrow down the opening so that thepressure in the kiln can be ±0mmH2O at around the first burner. By keeping the kilnpressure slightly positive, the amount of incoming air from the outside will decrease,
reducing the amounts of combustion exhaust and heat loss accordingly. This will also
help to lessen the maximum-minimum temperature difference and lead to the reduction

Ⅱ-14

in fuels.
b. Introduce biscuit fire if the installation capacity can afford.
As mentioned in (2) 1) c above, biscuit firing is recommendable because it improves thecondition of the glazed surface and the whiteness of the fired objects, thereby enhancing
the grade and quality of the objects.
3) 10m3, 4.7m3 shuttle kilna. Install high-speed burner
The shuttle kiln in current use has ceramic fiber inner walls. This is advantageous inenergy conservation because they reduce heat radiation from the surface of the kiln.
However, the burner used is of a natural suction type and not the burner agitating
atmosphere in the kiln.
Accordingly, if the burner is replaced with a high-speed burner agitating atmosphere in
the kiln on the occasion of remodeling or repair of the kiln in the future, it will help
lessen the maximum-minimum temperature difference and the firing time, thus
contributing to energy conservation (Figure Ⅱ-3-6).

Fiber

Object for firing
Entrance(door)

Waste gas
Kiln car

Stack

High-speed burner

Figure Ⅱ-3-6 The Shuttle Kiln Section

Ⅱ-15

3.3 Results of the Follow-up Survey on the Improvements Proposed in the Previous
Energy Audit
We conducted a follow-up survey on the progress in the improvement plans suggested in theprevious audit and on the points for possible additional guidance, and confirmed with thepersons concerned on the factory side as follows. We did not conduct an energy audit thistime and only explained in detail improvements yet to be implemented.
(1) Date of survey: October 26 (Tue.), 2004
(2) Examiners:

Messrs. Hideyuki Tanaka, Fumio Ogawa and Motomu Ishikawa,Technical experts, International Engineering Dept., ECCJ
Participants: MOI: Mr. Le Tuan Phong (ACE Focal Point)
ACE: Mr. Christopher Zamora
PTM, Malaysia: Mr. Phubalan Karunakaran(3) Interviewee: Mr. Hoang Quoc Thanh (Vice Technical Director) and 8 other people of Hai
Duong Porcelain Company(4) Check on the progress in the improvement plans proposed in the previous audit
As no answers were prepared for the questionnaires we had requested in advance, wetoured the factory, after we had interviews regarding the implementation of our proposals.
Although several of our proposed improvements had already been implemented, the overall
progress was not very good.
Here is a summary of the condition of each proposal.
1) Chinese tunnel kiln
a. The measure for reducing heat diffused from the surface of the kiln had not been taken
and it was set as a subject for future study.
b. The measure for reducing the quantity of heat escaping with combustion exhausts had
not been taken and its immediate implementation was decided.
c. The introduction of the process of biscuit fire was set as a subject for future study.
d. Sand for sand sealing was not replaced and its appropriate quantity was not determined.
The immediate implementation of the plans was decided.
e. The improvement plan of putting bricks (60–100 mm height) on the bricked top of thekiln car for making clearance between the car top and saggers to help combustion gas
easily flow in was not implemented and its immediate implementation was decided.
f. A regular height of piled saggers on each kiln car had already been maintained and theresulting stable temperature and atmosphere created effects.
g. The proposed door at the exit of kiln had not been set up and the plan was to be
implemented immediately.
h. The elongation of a short firing time from the entrance to the reducing flame (14 hours

Ⅱ-16

up until 1,050°C) was not implemented and the plan was decided to implement at the
furnace halt time (turn off the heat).
2) Roller Hearth Kiln
a. The suggested plan of keeping the pressure in the kiln slightly positive had already been
implemented and the temperature difference was a little lessened but no significant
numerical effect in reduction of fuels was recognized.
b. Biscuit fire
It was set as a subject for future study in the same way as 1) c.
3) 10m3, 4.7m3 shuttle kilna. Installation of high-speed burner
It is to be studied when the currently used kiln is repaired or replaced in the future.
As summarized above, out of the 11 improvements proposed in the previous energy audit,
only 2 plans were implemented. It is regrettable that they were not fully aware of energy
conservation, improvement in quality and yield, cost reduction, etc. In the post-survey
session on the results, staff members concerned of the factory joined in discussions in aserious manner. We would like to expect that the remaining plans will be implemented as
early as possible (Photo Ⅱ-3-1).

Ⅱ-17

Photo Ⅱ-3-1 Discussions and Explanations on the Results of the Follow-up Survey

3.4 Barriers to the Promotion of Energy Conservation and Countermeasures
It was too bad that few of the proposed energy conservation plans were actually put into
practice.
This shows that the Focal Point (country) and top managers of the company in question are
not paying attention to energy conservation.
Accordingly, Japan, Focal Point and the company concerned should seriously think about
how they can be more interested in and aware of energy conservation. Focal point, forexample, should make the company report on the progress in the implementation of theplans on a regular basis and establish a system in which they can inquire of Japan forwhatever they want to know more.
It may be a good plan that Focal Point will legislate for the program in which companies
that have achieved energy conservation to a certain extent will enjoy such benefits as
subsidies and taxation incentives (Figure Ⅱ-3-7).
Guidance in energy
conservation

Technical assistanceJapan

Focal Point

Corporation
Achievements inenergy conservation
Taxation incentive

Figure Ⅱ-3-7 Energy Conservation Promotion System

Ⅱ-18

4. Walk-through Energy Audit on the Factory of Rang Dong Light Source & Vacuum
Flask Company
We visited Rang Dong Company, a report on whose energy conservation had been made in
Seminar-Workshop. This company is manufacturing lighting fixtures such as electric bulbs
and fluorescent lamps and vacuum flasks. The company’s major energy-consuming
equipment was melting furnaces of glasses.
The survey was conducted as follows;- Date of survey:- Examiners:

October 26 (Tue.), 2004
Messrs. Hideyuki Tanaka, Fumio Ogawa and Motomu Ishikawa,Technical experts, International Engineering Dept., ECCJ
- Other participants: Mr. Ngo Huy Toan (MOI, Vietnam)
Mr. Phubalan Karunakaran (PTM (Malaysia Energy Center),
Malaysia)- Interviewees:
Hai Duong Porcelain Company
Mr. Vuong Bich Son: Deputy Director General (Leader of Energy
Team of MOI) and 2 other persons from Energy Team
4.1 Outline of Rang Dong Light Source & Vacuum Flask Company Factory(1) Company profile
Address:
Company form:
Capital:Production items:
Production output:
Sales amount (2003):
No. of employees:
No. of factories:
Working schedule:

Ha Dinh Str., Thanh Xuan District, Hanoi, Vietnam
State Owned Company
80 billion VND (Government 51%, Individual investors
49%)
Glass tubes for lighting and vacuum flasks
Lighting fixtures 73 million pcs/y,Vacuum flask, 7 million pcs/y
350 billion (2.45 billion yen = US$23.8 million)
1,600
6
2 shifts/day for 5 factories and 3 shifts/day for one factory(2) Major equipment
1) Tank furnace for melting glass
Fuel used:
Burner for melting purpose:
Heavy oil (quantity consumed 3,700 t/2002)
Burner for maintaining the maximum temperature:
Light oil
Maximum temperature:
1,500°C

Ⅱ-19

Quantity for melting processing:
Melting time:
Temperature of exhaust gas after heat exchange:
2) Processing of glass
Fuel used:
Fuel consumption:

22t/day
8 hours
350°C

LPG
1,400t/2002(3) Energy consumption (2003)
Heavy oil:
3,900tLight oil:
380,000kL
LPG:
1,750tElectricity:
8.50 × 106kWh
4.2 Walk-through Energy Audit and Proposed Improvements
We conducted a simple energy audit focusing on the tank furnace for melting glass, which
consumes the largest quantity of energy.
This type of furnace is characterized with its high maximum temperature at 1500°C and alarge amount of heat loss from its surface. Although we did not measure the surface
temperature of the furnace, because it was not hot as we anticipated due to the open
environment in which the furnace was set up, the surface temperature of the furnace wasapparently about 150°C (normally 200–300°C).
The temperature of the exhaust gas after heat exchange was 350°C. Although thistemperature is normal for this type of furnace, this sensible heat should be utilized
effectively.
As a result of having checked various glass processing machines, any particular energy
conservation measures were not recognized. .

Ⅱ-20

5.

Results on Seminar-Workshop

5.1 Summary
Seminar-Workshop was conducted on October 25, 2004.
The Seminar, where many practical examples of energy conservation were reported, wasconcluded with great success. However, as the Workshop was short of time for discussions
on Technical Directory, Database/Benchmark/Guideline, a meeting with MOI was held on alater date (29th) in Ministry of Industry.
(1) Place
Press Club, Hanoi, Vietnam(2) Reports made in Seminar-Workshop
Shown in “Program” in Attachment(3) Participants
The list of participants from Vietnam is included in Attachment.
ACE: Mr. Christopher G. Zamora, Manager
Foreign presenters:
Mr. Djoko Wiryano (PT Kertas Leces, Indonesia)
Mr. Vanthong Khamloonvylayvong (Nam Ngum Hydropower Plant, Lao
PDR)
Mr. Phubalan Karunakaran, (PTM: Malaysia Energy Center, Malaysia)
ECCJ: Technical experts, International Engineering Dep.
Messrs. Hideyuki Tanaka, Fumio Ogawa and Motomu Ishikawa
As can be seen in the lists, the total number of participants was 122, including 112
participants from Vietnam, translators and participants from other countries.
5.2 Results of Seminar-Workshop(1) Opening ceremony (Congratulatory speech and opening address)
1) Mr. Nguyen Dinh Hiep: Deputy Director Dept of Science Technology, Ministry ofIndustry (MOI)2) Mr. Hideyuki Tanaka: Technical expert from ECCJ
3) Mr. Christopher G. Zamora: Program Manager of ACE

Ⅱ-21

(2) Energy conservation plans and activities
1) Current status and activities on EE&C in Vietnam・・・ Mr. Phong: MOI
He introduced the country’s planned future energy conservation measures and legislations,barriers recognized to the promotion of energy conservation and the efforts of the country.
2) Energy conservation plans in Japan・・・ Mr. Hideyuki Tanaka ECCJHe explained energy situation and energy management and laws, subsidy systems andprivate sector activities on energy in Japan.
3) Energy conservation best practices for major industries in Vietnam.
a. Promoting EE&C in industry of Vietnam (Dr. Pham Hoang Luong、Hanoi University ofTechnology)
He explained the necessity to reduce carbon dioxide to prevent global warming issue
and reported on logical energy conservation methods and barriers to them, the effects of
the introduction of state-of-the-art shuttle kilns in a brick factory and a tableware factory,
and on energy conservation efforts through improvement of efficiency of blower fans ina cement company. It was easy for participants to understand and his presentation wasvery informative.
b. Example of energy conservation in paper and pulp factory (Bai Bang Paper Co, Ltd.)
Material had been created in Vietnamese language and the translator’s technicalknowledge was not enough and regrettably we could not understand the material.
Later we obtained the material translated into Japanese. The report on the case example,
in which energy conservation effects were achieved through prevention of steam leakageof the boilers, thermal insulation of the steam piping, improvement of the combustion
method, recovery of the exhaust heat, etc., was very meaningful.
c. Example of energy conservation in lighting apparatus manufacturing factory (Rang
Dong Light Source & Vacuum Flask Co, Ltd.)There was a report on the case in which significant energy conservation effects wereachieved through the development of energy-saving products in conformity to theenergy conservation law, the implementation of thermal insulation of walls of gas
furnaces in the factory, the optimization of air ratio for combustion, etc.
However, as reported in 4. above, judging from the company’s explanation and attitude
we faced on the occasion of our simple energy audit, we thought this report on energy
conservation was a little questionable.
4) Promotion of energy conservation and practical examples in other ASEAN countries
a. Experience and application of EE&C in PT KERTAS LECES (Paper and Pulp Company,
Kertas Leces, Indonesia)
A report was made on the guidance and energy audit provided by ECCJ in 2001 and its
effects

Ⅱ-22

b. Experience and application of EE&C in Num Ngum hydropower plant (Lao PDR)In the same way as Indonesia, a report was made on the energy audit conducted by
ECCJ in 2002 and its effects.
c. Experience and application of EE&C in textile factory (AMDB, Malaysia)
A report was made on the energy audit at AMDB Company conducted by ECCJ in 2001
and the energy conservation effects gained from the change of boiler fuel from heavy oil
to gas.
With the above reports on many successful examples of energy conservation creating effects,
the Seminar was very meaningful. (Photo: Ⅱ-5-1)
Agenda and the list of participants of the Seminar-Workshop are contained in the
Attachment.
This Seminar-Workshop was, as a result, short of time due to active and vigorous
discussions among the participants including 112 attendees from Vietnam. Accordingly,
after the Seminar part was completed, we visited MOI on the last day to hold Workshop
there. The Workshop held is described below.

Photo Ⅱ-5-1 Participants in the Seminar (October 25, 2004)

5.3 Workshop (Discussions on the Policy of Establishing Database/Benchmark/
Guideline)
We visited MOI and had a meeting with the persons concerned to discuss Technical
Directory (TD), Database (DB), Benchmark (BM) and Guideline (GL). (Photo Ⅱ-5-2)
Vietnam side: Mr. Le Tuan Phong, Mr. Dang Hai Dung, Mr. Ngo Huy Toan
PTM (Malaysia Energy Center): Mr. Phubalan Karunakaran

Ⅱ-23

ECCJ:

Messrs. Hideyuki Tanaka, Fumio Ogawa and Motomu Ishikawa

Photo Ⅱ-5-2 Meeting with MOI(1) Current situation in Vietnam
Although there were problems about the collection of data on energy consumptions fromthe respective companies for the purpose of developing DT/BM/GL, the following decreeof “Energy Conservation & Energy Efficiency” was issued in 2003 and 2004.
Designated companies:

Other companies:

Over 1,000t of annual fuel consumption
Over 500kW of capacity of electric installation orover 3 million kWh of annual power use
Energy consumption below those of designatedcompanies

All companies falling under either of the above categories shall submit to MOI a report on
their annual energy consumptions and the implementation of energy conservation efforts.
They shall receive an energy audit every 3 to 5 years and report on the results. If any
problems are identified, they shall submit improvement plans.
(2) Condition of other ASEAN countries.
There is an association in Malaysia, which collects information and data on companies ofsteel, cement, etc. Singapore also has a similar association.
(3) Development of Technical Directory and Database/Benchmark/Guideline

Ⅱ-24

As the manufacturing process, the manufacturing scale and the type of product are different
depending on the industry, comparisons on the same basis may be difficult. In addition, in
terms of disclosure of information, the respective industries are not very positive. There areseveral obstacles to get over in the way of creation of these Technical Directory andDatabase/Benchmark/ Guideline.
(4) Future plan
Although there are obstacles and difficulties as mentioned above, in Vietnam, we decided
to give assistance in collection of data on energy consumptions from companies andpromotion of energy conservation efforts to companies for the final goal of establishing
Technical Directory, Database/Benchmark/Guideline.
In the current on-site activities, the time of Seminar-Workshop ran out and a workshop had
to be held on a separate date and Seminar-Workshop itself should have been scheduled
after the follow-up examination. These remained our future issues to be studied.

Ⅱ-25

Ⅲ.

Lao PDR (Hydropower Generation Industry)

1. Outline of Activities
We conducted a follow-up survey on a plant that underwent an energy audit in the previous
round (January 29 - February 1, 2002) and an energy audit on a newly selected plant. We
gave Seminar/Workshop in Vientiane in Lao PDR. The seminar included reporting onpractical examples of energy conservation in various industries as well as reports on the
results of these surveys. In the workshop, Technical Directory andDatabase/Benchmark/Guideline, etc. was studied.
1.1 Period
1.2
November 15-19, 2004
1.3 Venue
1.4
Follow-up survey:

Nam Ngum Hydropower Plant (Approx. 90km north ofVientiane city)
Walkthrough energy audit on a newly selected factory:
Vientiane city
Seminar/Workshop:
Vientiane city

1.3 Schedule
November 15 (Mon.):16 (Tue.):
17 (Wed.):18 (Thu.):
19 (Fri.):

Follow-up survey (Nam Ngum Hydropower Plant)
Walkthrough energy audit (Factory of Textile 55 Co. Ltd.)
Meeting of Japanese staff and summary
Seminar/Workshop
Meeting about Technical Directory and Database/Benchmark/
Guideline in Ministry of Industry and Handicrafts (MIH)

1.4 People Involved
ACE (ASEAN Center for Energy):
Mr. Christopher G. Zamora: Manager
Lao PDR Focal Point: Ministry of Industry and Handicrafts (MIH), Dept. of Electricity
Mr. Sisoukan Sayarath:
Chief of Electricity Management Division (EMD)
Mr. Khamso Kouphokham: Deputy Chief of EMD
Technical experts from Japan:
Messrs. Hideyuki Tanaka, Fumio Ogawa, Keiichi Yoneda and Yoichi Kita:
Technical experts of International Engineering Dept.,
ECCJ

Ⅲ−1

2.

Latest Situation of Energy Conditions and Industries in Lao PDR

2.1 Energy Situation in Lao PDR(1) Overview
Lao PDR has a total population of 5.6 million people. The country’s GDP is mainly madeof agricultural activities. In 2003, agricultural product accounts for 48 percent of total GDP,
while industrial sector contributes only 26 percent. In the industrial sector, electricity sector
is plying an important role in gaining revenues for the sector development. In pursuing thegovernment’s policy in eradicating the nationwide poverty and getting rid of in theleast-developed-country list, electricity sector development is considered as the basic
infrastructure. By 2020, the country has a target of increasing electrification ratio up to 90
percent of the country’s total households. In 2004, the ratio has reached 44 percent.
Energy sector in Lao PDR is under the responsibility of different organizations. There is no
single organization that is responsible for the whole energy sector like. But thoseorganizations are in charge of each energy type. Fore example, Ministry of Industry andHandicrafts is responsible for the electricity sector and Ministry of Commerce is for gas
and oil. In terms of energy planning and management, it is carried individually by sector.
With regards to energy efficiency and conservation, the Ministry of Industry andHandicrafts is proposed to be leading in developing policy and legislations of the energy
efficiency and conservation. After joining ASEAN in 2003, Lao PDR has been
participating the Energy Efficiency and Conservation program with other ASEAN member
countries. Through this participation, many concerned governmental and private officials
got trainings of energy efficiency and conservation in buildings and industries.
In Lao PDR, just like in other Southeast Asian countries, energy is fundamental tosocio-economic development. The demand for energy of the country is expected toincrease rapidly due to high rising economic and population growth rates. And large
proportion of this demand will be met by imported energy to meet domestic requirements.
In 2003, the country’s energy consumption was 3,852 KTOE and about 49 % is met byimported energy.
(2) Energy Situation in Industry
It is expected that the industrial sector will become a major sector in the economy as theLao government has a goal to industrialise and modernise the country. Even though in2003 energy consumption in the industrial sector was only around 6 percent of total, thisfigure will rise and be more than those of other sectors. Energy consumption of theindustry in 2003 has accounted for 249 KTOE, while it was 3,332 KTOE for residential
sector. At the moment, Sepong gold mining is the biggest electricity consumer in the
country, which has power demand of 30 MW. In the near future, such energy intensive
plant will be developed in many sites, especially for industrial mining.

Ⅲ−2

In Lao PDR, the legislations and guidelines on energy efficiency and consumption are notestablished yet, as up to now most of the government’s efforts are made on an increase ofelectrification ratio and provide electricity to industrial development sites. However, there
are some evidences showing that many industrial sites have their own energy management
system, in particular in reducing and conserving energy in their factories. Since 2002, thecountry is introducing the current electricity tariff system, which increases monthly by 2.3
percent. This system of tariff makes most consumers, especially industrial and businessones taking care of their electricity consumption. Until June 2004 the monthly increase ofelectricity tariff has been cancelled, and now Electricity tariff for industry is about 6.17 US
cents per kWh. Some factories have developed energy saving activities including energy
auditing which are undertaken by their own personnel. In addition, the Ministry of Industry
and Handicrafts, ASEAN Centre for Energy and Energy Conservation Centre of Japan
co-organized a number of in-country workshops and seminars for the industrial staff onenergy auditing and management.
(3) Energy Situation in Hydropower Generation Industry
In Lao PDR, more than 96 percent of electricity supplied is from hydropower plants. The
hydropower scheme is being developed for two purposes, domestic and export supplies. In
terms of export, at the moment, Lao PDR has two plants namely; Theun Hinboun
Hydropower plant with installed capacity of 220 MW and another, Houay Ho Hydropower
Plant with installed capacity of 150 MW. These two plants are under concession agreementwith the joint ventures of overseas private and Lao companies. The power generated bythese 2 plants is exported to Thailand. In addition, Lao PDR plans to develop additionalhydropower sites for electricity export to neighbouring countries. This development is also
considered as an important aspect of the government in enrichment of the economy inparticular of gaining income to the country.
If compared with other industrial plants, hydropower generation industry does use lessenergy. The energy used in this industry is mostly in the form of electricity and mainly forlighting and pumping water. In the past, there were little efforts on energy savings inhydropower plants in Lao PDR. Most efforts are made only to keep the hydropower plants
in a good working condition and often not paying attention to energy usage in the plants. In
2002, Lao government has requested Energy Conservation Centre of Japan (ECCJ) via
ASEAN Energy Efficiency and Conservation Sub-Sector Network to assist Lao PDR to
conduct energy audit in Nam Ngum Hydropower Plant. This plant began its operation from1971 the efficiency of the production have been decreased and energy consumption in theplant was also high. Now, because of the well implemented measures andrecommendations by the Japanese technical experts in that energy auditing, the amount ofenergy used for the plant has been reduced and more importantly efficiency of production
has been also improved.

Ⅲ−3

2.2

Situation of Industry in Lao PDR(1) Overview
For the past ten years, there are some big investments in industrial sector, especially inhydropower development sites and mining sites. For hydropower development in the same
period, there were four hydropower plants built with a total installed capacity of 460 MW.
In 2003, the gold and cooper mining is being developed in Sepong district of Savannakhet
province. Apart from hydropower and mining plants, Lao PDR has got other industries
such as cement, garment, metal, timber, brewery and soft drinks.
(2) Situation of Hydropower Generation Industry including Promotion in EE&C
Lao PDR can produce power energy annually of around 3,500 GWh. The below Table Ⅲ-2-1 shows major hydropower plants and their annual production of energy in MWh. In
this table, two plants namely; Theun Hinboun and Houay Ho are under private ownershipor Independent Power Producer Scheme. The two plants are developed for exporting
energy to Thailand. The remaining plants belong to Electricite du Lao PDR (State-owned
enterprise).
Table Ⅲ-2-1 Annual Hydropower Generation(Unit: MWh)No

Name ofhydropower plant

2000

2001

2002

2003

2004

919,852.30

961,399.00

1 Nam Ngum

1,117,005.00 1,138,574.72 1,153,049.64

2 Theun Hinboun

1,483,788.15 1,507,498.70 1,454,594.94 1,432,080.00 1,527,713.75

3 Houay Ho

617,550.42

592,512.58

579,313.27

429,219.44

402,069.81

4 Xeset168,016.35

147,574.63

155,707.57

157,352.34

112,264.00

5 Nam Leuk

263,486.30

237,177.10

226,787.10

211,677.50

219,879.00

6 Xelabam

24,263.16

25,403.29

23,732.94

17,770.60

15,799.00

7 Nam Ko--

5,000.41

5,306.80

4,509.00

5,735.97

4,762.29

5,827.52

4,881.23

4,936.00

8 Nam Dong
Total

3,679,845.35 3,653,503.31 3,604,013.39 3,178,140.20 3,248,569.55

In the near future, the Lao government plans to develop a number of hydropower plants
both for domestic and export purposes. For domestic supply, 7 new projects are proposed
to be built in order to meet the energy demand of the country by 2020. These plants are
Xeset 2, Nam Sim, Nam Bieng, Nam Ngiep 1, Nam Chia, Houay Lam Phan Gnai, and
Nam Theun 2 (for domestic). For export scheme, the government has signed someagreements of power deal with Thailand and Vietnam. The planned projects for export are
Nam Theun 2, Xekaman 3, Nam Mo, and Nam Ngum 3.

Ⅲ−4

The information relating to promotion of Energy Efficiency and Conservation in thehydropower is generally limited, except those of Nam Ngum hydropower plant. In the near
future, it will be very useful to introduce promotion of Energy Efficiency and Conservationfor other plants by taking Nam Ngum hydropower plant as an example. The Nam Ngum
plant demonstrated excellent practices in saving energy that is good for the economy andpeople of Lao PDR.
2.3 Situation in Lao PDR(1) General condition
240,000km2
5.526 million (2002)
Buddhism.
People’s Democratic Republic
Agriculture, forestry/ wood processing andhydropower generation
Per capita GDP:
US$ 365 (2002)
Economic growth rate:
5.9% (2002)
Currency:
Kip, US$1 = 10,800 Kip (As of November,
2004)- Economic overview:
The introduction of market economy and the policy ofopen economy have been promoted. Currently thenation’s economy is slowly recovering throughpromotion of foreign investments, etc.

- Area:-Population:- Religion:- System of government:- Economy: Major industries:(2) Energy situation in Lao PDR
Energy sources and fuel/electricity consumptions in Lao PDR are shown in Figure Ⅲ-2-1.
As energy source, fuel oil makes up the largest share, followed by electric power andrenewal energy (RE, mainly biomass energy). About a half of fuel and electricity go forresidential use. Industrial sector is the third largest user of fuels after transport sector andthe second largest user of electricity following residential sector. It would be very
important to raise energy conservation activities in the industries from now.

Ⅲ−5

Energy Sources
Electricity
Fuel Oil
NPG
Coal
Biomass

Electricity Fuel Oil
27.3%

38.6%

NPG

Coal

Biomass Total

0.2%

6.8%

27.1%

Energy consumption by sectors

Electricity consumption in 2003
Residence
Business
Entertainment
Gov. office
Agriculture
Embassies
Industry

Industry
Agriculture
Commerce
Residence
Transport

Industry Agricult. Commerce ResidenceTransport Total

20.3%

1.5%

1.1%

50.8%

26.3% 100%
1810.33ktoe

100%779.5ktoe

Resid. Busin. Entert. Gov. off. Agri. Emba. Indus. Total
51.0% 9.8% 1.2%
9.9% 3.8% 0.9% 23.4% 100%
1,738,646MWh

Figure Ⅲ-2-1 Energy Consumption Share in Lao PDR(Source: EE&C Programs of Lao PDR (MIH, Lao PDR)

Ⅲ−6

3.

Follow-up Survey on Nam Ngum Hydropower Plant

3.1 Outline of Num Ngum Hydropower Plant
This is a concrete dam-type power station located 90km north of Vientiane. Num Ngum
hydropower plant was constructed in 3 phases with the financial cooperation of various
foreign countries.

PhotoⅢ-3-1 Exterior View of Nam Ngum Hydropower Plant
In Phase I of the plant construction, which began in 1968, 2 power units with installedcapacity of 15MW (No. 1 and No. 2) and a 115kV-70MVA substation with one high-voltage
line were constructed and connected to the grid network in Nong Khai in Thailand owned
by EGAT (Electricity Generating Authority of Thailand) via substation in Vientiane. Powertransmission was started in 1971.
In 1976, Phase II started and 2 more power units with installed capacity of 40MW (No. 3
and No. 4) and an 115kV substation with 2 high-voltage lines were constructed andconnected to the Thanaleng substation in Udon in Thailand. The operation was started in
1978.
Phase Ⅲ began in 1983 and one power unit with the generation capacity of 40MW (No 5)
was constructed and the operation was started in1984.
The equipment subject to the previous energy audit and the current follow-up survey is thelastly constructed No. 5 unit.
The reason why No. 5 unit was chosen for the survey was that this equipment had not been

Ⅲ−7

overhauled once since its operation was commenced in 1984 and it was anticipated that thedeterioration in efficiency of its hydraulic turbine would be most significant of all. (No. 1 &2 and No. 3 & 4 were overhauled in 1981 and 1990 respectively and No. 1 and No. 2 were
subjects of the Rehabilitation and Modernization Project implemented in 2002 with the aid
from Japan.)
3.2 Summary of the Results of the Previous Energy Audit
The results of the previous survey are briefed below.
(1) Date of survey: January 28 (Mon.) - February 1 (Fri.), 2002
(2) Examiners:
Mr. Yasunori Serizawa: GM of International Engineering Dept., ECCJ and
Mr. Nobunari Kawamoto: technical specialist, ECCJ
(3) Outline of equipment surveyed
Outline of power plant having equipment concerned,
Name of power plant:
Nam Ngum Hydropower Plant
Generation capacity:
Sum total 150,000 kW (155,000 kW from 2004)
Total of units: No. 1 & No. 2: 30,000kW(35,000kW from 2004)
Total of units: No. 3 & No. 4 : 80,000kW
Unit No. 5: 40,000kW
Reservoir:
Catchments area
Reservoir capacity (at EL. 212m)
Submerged area (at EL. 212m)
Full water level
Low water level
Water depth in use
Dam:
Type
Length of top of dam
HeightIntake gate:
Type

Ⅲ−8

:
:
:
:
:
:

8,460 km2
7,030 x 106 m3
370 km2
212.0 m196.0 m16.0 m:::Concrete gravity type
468 m
75 m

:

Roller gate

Pipeline:
No. of pipelines :Diameter:
Length:Power plant:
Type
Size

Unit 1&2
2
3.4m
50m

Unit 3&4
2
6.0m
55m

Unit 51
6.0m
55m: Semi-basement: H20 m × W16 m × L107 m

Hydraulic turbine:
TypePower output
Maximum headStandard head
Rotating speed
Manufacturer
Commencement ofoperation

:
:
:
:
:
:
:

Unit 1&2
Francis15,500kW
45.5m
32.0m
176.5rpm
Hitachi, Ltd

Unit 3&4
Francis53,000kW
45.5m
32.0m
136.4rpm
Hitachi, Ltd

Unit 5
Francis53,000kW
45.5m
32.0m
136.4rpm
Hitachi, Ltd

1971

1978

1984

Unit 1&2
17,500kVA
11kV
0.86
50
176.5rpm
Hitachi, Ltd
1971

Unit 3&4
50,000kVA
11kV
0.8
50
136rpmAEG
1978

Unit 550,000kVA
11kV
0.8
50
136rpmHitachi, Ltd
1984

Power generator:
Rated output:
Rated voltage:
Power factor:
Rated frequency:
Rotating speed:
Manufacturer:
Commencement ofoperation:

The structure of Nam Ngum Hydraulic Power Plant is shown in Figure Ⅲ-3-1.

Ⅲ−9

Figure Ⅲ-3-1 The Structure of Nam Ngum Hydraulic Power Plant(4) Summary of the results of energy audit
As regards the operation of reservoir, although the water level of dam appears to drop due
to drought, there were no increase in the frequency of ineffective discharges due tooperation errors and no effective discharge at the time of the outage of hydraulicturbines/power generators, and thus, the inflowing water was utilized without waste. In
addition, as the result of actual measurement, it was found that the maximum output of thehydraulic turbine had dropped by about 1,224kW (2.61%) compared to the time when theoperation was started. (See Figure Ⅲ-3-2, 3)
Based on these results, the following improvement plans were proposed.
1) Retaining or increasing power generation (improvement of efficiency)
a. Improve efficiency of hydraulic turbine
b. Improve efficiency of power generator/transformer
c. Improve management of reservoir (Install robot rain gauge)2) Saving electricity used in the planta. Turn off outdoor lightingb. Adopt inverter fluorescent lampsc. Employ intermittent operation of pressure oil pump

Ⅲ−10

Relation betw een w icket gate opening and Output
Gate opening VS output test (Increasing load)
Unit No.5
50,00045,00040,000Generator Output (kW)35,00030,00025,00020,00015,00010,000Generator Output (KW) at 04 Dec. 1984
Generator Output (KW) at 31 Jan. 2002
Generator Output (KW) corrected into 43.16 m

5,000

0

0

Figure II-3-3 Points Causing Losses

100

200
300
400
Gate servomotor opening (mm)500

Figure Ⅲ-3-3 Deterioration in Generating
Efficiency

3.3 Results of the Follow-up Survey on the Improvements Proposed in the Previous
Energy Audit(1) Date of survey: November 15 (Mon.), 2004
(2) Examiners:

Messrs. Hideyuki Tanaka, Fumio Ogawa, Keiichi Yoneda and Yoichi Kita:
Technical experts of International Engineering Dept., ECCJ
Participants: MIH
Mr. Sisoukan Sayarath
ACE
Mr. Christopher Zamora(3) Interviewees: Nam Ngum Hydro Power Plant
Mr. Vanthong Khamloonvylayvong (Deputy Manager of the plant)
Mr. Phet Sychaleune (Manager of Electrical Dept.)(4) Check on the progress in the improvement plans proposed in the previous audit
We had a Q and A time based on the answers to the questionnaire we had requested inadvance. It happened that our report on the previous audit had not been delivered to the

Ⅲ−11

600

plant side and they received it only one month before our current visit with them. However,they were thankful for the report and said that it provided very useful material.
The implementation status is described below. Except for very costly proposals, almost allof our suggested plans had already been implemented.
1) Retaining or increasing power generation (improvement of efficiency)
a. Improvement in efficiency of hydraulic turbine
It was implemented.
They tried to recover the efficiency by comprehensively repairing the water paths
including coating of pipeline with the overall focus on the repair of the runner damaged
from cavitations.
They said that they carefully carried out the process obtaining advice from the
manufacturer because this improvement involved the repair of the core part of theequipment and therefore was technically difficult.
As can be seen from the chart, the efficiency improved from 97.39% to 98.7%. (Up of
1.3%)
As a result, the maximum output increased by about 520kW.

Photo Ⅲ-3-2 Runner Damage from Cavitations
b. Improvement in efficiency of power generator/transformer
It was under study.
As it involves a significant amount of money, it is likely that it will be realized when thefunded program such as Rehabilitation and Modernization program that was applied toNo. 1 and No 2 units becomes available.
c. Improvement in management of reservoir (Install robot rain gauge)
It was not implemented.
According to Mr. Vanthong, as the data of Meteorological Center is available, theinstallation of a new rain gauge is not necessary.
According to a JICA specialist stationed in Lao PDR for a long time assignment

Ⅲ−12(specialized in hydraulic power generation) who Mr. Vanthong consults with regarding
the dam operation plan, it is very difficult to forecast water level of dam, particularly tomake accurate forecasts as it is done not only based on the rainfall of the year concerned
but also from the data on inflowing water quantity and water stage collected over the past
10 or more years. (Figure Ⅲ-3-4 Changes in water level)

m

214.0
213.5
213.0
212.5
212.0
211.5
211.0
210.5
210.0
209.5
209.0
208.5
208.0
207.5
207.0
206.5
206.0
205.5
205.0
204.5
204.0
203.5
203.0
202.5
202.0
201.5
201.0
200.5
200.0
199.5
199.0
198.5
198.0
197.5
197.0

1- 16- 31- 15- 2- 17- 1- 16- 1- 16- 31- 15- 30- 15- 30- 14- 29- 13- 28- 13- 28- 12- 27- 12- 27Jan Jan Jan Feb Mar Mar Apr Apr May May May Jun Jun Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec
2004

1995

1996

1997

1998

1999

2002

2003

Spill

1987

1989

1990

2000

2001

Figure Ⅲ-3-4 Changes in Water Level
2) Saving electricity used in the planta. Turn off outdoor lighting
It is practiced.
Outdoor illumination equipment was changed from 400W × 30 lamps (Total: 12kW) to250W × 30 lamps (Total: 7.5kW) and saving electricity of 4.5kW has been achieved.
Saving energy is totals 19,710kWh on an annual basis (8,760/2h).
As a next step, they plan to change to the illumination equipment of 40W × 55 lamps(Total 2.2kW) in 2005.
b. Adopt inverter fluorescent lamps
It has not been practiced.
The reason is that inverter lighting apparatus is extremely expensive.
According to Mr. Vanthong, inverter lighting fixture made in New Zealand cost
US$ 6,000 (including installation cost).

Ⅲ−13

As such lighting fixture costs several tens of thousand yen at a list price in Japan(excluding installation cost), we decided to send reference material from Japan when weare back.
c. Employ intermittent operation of pressure oil pump
Although the pressure oil pump had initially been controlled by automatic operating
system, it looked to be running continuously because of too much oil leakage.
Through the improvement of the sealing part including the replacement of packing, oilleakage was avoided and load operation hour of pressure pump was shortened.
In the same way, compressed air leakage also was eliminated through the improvementof the sealing part and load operation hour of compressor was shortened. For both cases
there was no reporting on specific energy reduction amount.
3.4 Results of the Current Survey
As an important operation assessment criterion for hydraulic power plant, annual total
output is used. In other words, it measures how efficiently electricity was generated against
the obtained water resource.
Generally speaking, with the highest average water stage with the fewest ineffective
discharges, the maximum annual total output will be achieved.
(1) Changes in annual output (No. 5 power unit) (Figure Ⅲ-3-5 annual total output)
This figure shows that in 2003, despite the low average water level due to the scarce ofwater resource, annual total output did not drop profoundly.
Compared to other years under the similar condition (1991, 1992, 1998), the operation
efficiency is obvious.

Ⅲ−14

Annual Output
kWh350,000,000

m
209

0

(m)

2003

202
2002

50,000,000

2001

203

2000

100,000,000

1999

204

1998

150,000,000

1997

205

1996

200,000,000

1995

206

1994

250,000,000

1993

207

1992

300,000,000

1991

208

year

(kWh)

Figure Ⅲ-3-5 Annual Total Output (No.5 Power Unit)(2) Changes in annual operating hours (No. 5 Power unit) (Fig. Ⅲ-3-6 annual total operating
hours)

Operating hours
hours

m
209

9,000.00

208

8,000.00
7,000.00

207

6,000.00

206

5,000.00

205

4,000.00
3,000.00

204

2,000.00
203

1,000.00
0.00
2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

202

year

(m)

Figure Ⅲ-3-6 Annual Operating Hours (No.5 Power Unit)
This figure shows that in 2003, despite the low average water level due to the scarce water
resource, total annual operating hours did not decrease significantly.
Compared to other years under the similar trend (1991, 1992, 1998), the annual operation

Ⅲ−15

time is lengthened.
(3) Changes in average power output (No. 5 unit)
Figure Ⅲ-3-7 shows that in 2003 despite the scarce water resource and low average waterlevel, average generated output did not decrease significantly.
Compared to other years under the similar condition (1991, 1992, 1998), the operation
efficiency is obvious.

Average output
kwh
kWh

m

42,000209

41,000208

40,000207

39,000206

38,00037,000205

36,000204

35,00034,000203

33,00032,000(m)(kWh/h)Figure Ⅲ-3-7 Annual Average Output (No.5 Power Unit)

Ⅲ−16

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

202

year

4.

Energy Audit on Factory of Textile 55 Co. Ltd.
We visited a garment factory located in Vientiane city and conducted a survey on their energy
conservation activities. In Lao PDR, the garment industry is the second largest industry after
the power generation industry and an important industry in terms of acquisition of foreign
currency.
The survey was conducted with the following date and members.
Date of survey:
Morning, Tuesday November 16, 2004
Examiners:
Messrs. Hideyuki Tanaka, Fumio Ogawa, Keiichi Yoneda and
Yoichi Kita:
Technical experts of International Engineering Dept., ECCJ
Participants:
Mr. Sisoukan SAYARATH (MIH, Lao PDR)
Mr. Christopher Zamora (ACE)Interviewees:
Textile 55 Co. Ltd.
Mr. PAPIN (Factory Manager)
Mr. WATT (Stuff)

4.1 Outline of Factory of Textile 55 Co. Ltd.
This is a small-to-medium-sized garment factory where casual pants and jackets are
manufactured for export.
The head quarters are in Thailand and this garment factory in Vientiane was constructed
about 6 years ago.
After purchasing closing fabric, sewing/labeling/packing are done in this factory. Most of
the products are apparently exported to European Union (EU).
The general manager of the factory, who is a French person living in Asia for many years,
has been associated with the Thai owner over 20 years and is entrusted with the
management of the factory from the opening of the factory. He said that he and Thai owner
could take heart-to-heart communication with each other although they spoke only theirown languages.
The brand’s characteristics are low prices and good quality and the scale of the management
staff is minimized (about 15 people).
Recently the second factory has been constructed and products for selling in supermarkets
are manufactured there. 10 experienced workers are transferred from this factory each timeto help upgrade the manufacturing level of the new factory.
The scene of workers in workplace of Textile 55 Co. Ltd Factory is shown in Photo Ⅲ-4-12.
(1) Product:Casual wear (Pants 90%, Jacket 10%),
Importing of materials and exporting of all products(2) Production volume:

60,000 pieces/monthⅢ−17(3) No. of employees:

568(4) Working hours:

8:00~17:00 from Monday through Saturday
Sometimes overtime working until 19:00
No shifts

Photo Ⅲ-4-1 Workers at Work in Textile 55 Co. Ltd Factory
4.2 Analysis of the Current Condition and Results(1) Equipment in the factory
Under Mr. PAPIN’s guidance, we conducted a site survey of the factory. We toured fromthe upstream to downstream of the manufacturing process and then, to utilities to check thecurrent condition of the equipment.
Auditing flow
Pattern making place → Yard of materials → Cutting of clothing fabric → Numbering andsorting → Sewing by sewing machine in 5 lines → Checking and adjustment →Production of sample products → Compressor and boiler
There was no air conditioner in the factory except in the office, and only natural draft,ceiling fans and local fans were used.

Ⅲ−18

Equipment of each spot in manufacturing process is as follows;
1) Warehouse for clothing fabric: Fluorescent lamps
2) Paper pattern cutting:Fluorescent lamps3) Clothing fabric cutting:5 or so small-size electric cutting machines, fluorescentlamps4) Numbering of cut fabric (Stamping): Fluorescent lamps, ceiling fans
5) Machine-sewing:
230 sewing machines, fluorescent lamps, ceiling fans6) Adjustment/finishing:Fluorescent lamps, ceiling fans
7) Packing/picking broken thread/ironing/hole-checking/putting price tags and labels:
Small sized air compressor, air blower and electricheating boiler(2) Specification of major equipment
1) Sewing machine:
2) Ceiling and floor fan:3) Electric heating boiler:
4) Air compressor:
5) Air conditioning:6) Lighting fixture:7) Iron:8) Emergency generator:

1.3 HP = 0.975KW × 230 units
0.5 HP × many
380V, Max 5.5 kg/cm2 Specification not known
3 HP, 5kg/cm2
Several units are in use in the office
Many pair-type fluorescent lamps
5 units
Not installed(3) Manufacturing cost
Monthly manufacturing cost:
US$ 60,000 – 65,000/M
Personnel expense accounts for 80% (approx. US$85/month/person on a factory-wide
average) and energy cost (electricity charge) accounts for 3.2 – 3.4%.
(4) Annual energy consumption
Electricity:

Average for January to December 2003: 27,333kWh/M(= US$1,552/M)
Average for January to September 2004: 29,290kWh/M (= US$2,066/M)
Increase in electricity unit charge: January 2003 = 545Kip/kWh (¥1 = 100Kip)
September 2004= 826Kip/kWh (1.52 as much of that ofJan. 2003)
Electricity unit charge is extremely high compared to commodity prices.
Electric consumption by individual equipment is not measured and only the total monthly
electricity consumption for the entire factory is obtained from receipts. No energy otherthan electricity is used. There is little water consumption and municipal water service issufficient for the use of the factory.

Ⅲ−19

(5) Energy conservation activities practiced
We toured the factory following the casual wear manufacturing process (in the order of
numbers in (1) above). Although the electricity is used in many places, as the consumed
amounts are small in all places and energy conservation will be hardly effective. Energy
conservation efforts that have been made to date include completely turning off individual
lights where it is light enough and individual switches where fluorescent lamps are
removed.
The air conditioning equipment has not been used for about 5 years and air conditioning of
the factory was shifted to ventilation by opening windows and ceiling fans.
They say this is preferable for the working environment.
Only 2 persons, Mr. Papin, Plant Manager and Mr. Watt, a young engineer, are in charge ofmanagement and they look quite busy. Although the parent company urges cost reduction,
only small-scale energy conservation is practical and no measure has been taken. However,they were concerned about the ever-increasing electricity charge.
4.3 Proposed Improvements and Expected Effects
All the ceiling fans were in operation. The number of fans to be put in operation should becontrolled depending on the rain season or dry season.
The size of the steam piping is small. Although thermal insulation was installed around thepipes, it had dropped in some parts. Thermal insulation should be enhanced.

Ⅲ−20

5.

Results on Seminar-Workshop

5.1 Summary
Mr. Houmphone, Director General of Department of Energy of MIH, expressed his strong
support for the promotion of the theme of the current program in his speech that he maderepresenting Lao PDR ahead of other speakers in the opening remarks. Mr. Houmphone,
who had been responsible for the engineering management of Nam Ngum Hydraulic Power
Plant until 1985, has a profound knowledge of energy. Mr. Tanaka of ECCJ told Japan’s wayof contributing to this project, the meaning of the theme of the current program, etc.
Seminar-Workshop was well organized and proceeded smoothly and was concluded withgreat success. The following positive factors contributed to this result.
① We could have a discussion time with ACE and Lao PDR on the previous day and could
prepare and distribute the updated agenda and handouts for Seminar-Workshop.
Accordingly, the audience could understand the overall structure of the session and thecontent of each subject.
② MC (Mr. Zamora of ACE)’s time management was very appropriate.
③ Partial use of English/Lao PDR interpreter for only key points of the session underlined
the points of the session and thus made it easy to understand. It also helped save time. In
addition, as Mr. Khamso of MIH served as an interpreter, his translation of technicalterms and technical matters was accurate and proper.
④ Each presentation had enriched content and most participants listened to the end ardently.
There was also a Q and A time with the audience of the conference.
⑤ MC did a good job. Responding to the request for approval on the promotion ofTechnical Directory and DB/BM/GL proposed in the end of the session, the majority ofthe participants raised their hands. The session was concluded with great success.
This Seminar-Workshop received Lao PDR state television coverage, and the conference
was videotaped (Aired on evening news on 7:00 P.M.) It was a very meaningful event in thelight of promotion of energy conservation to general public.
(1) Venue:

Lane Xang Hotel, Vientiane, Lao PDR(2) Content of reports/presentations made in Seminar-Workshop
Shown in Attachment Program(3) Participants
List of participants from Lao PDR is contained in attached material. Foreign participants
included:
ACE: Mr. Christopher G. Zamora, Manager
Foreign presenter:
Mr. Hishamudin Ibrahim

Ⅲ−21

Pusat Tenaga Malaysia (PTM), Malaysia Energy Center
Messrs. Hideyuki Tanaka, Fumio Ogawa, Keiichi Yoneda and Yoichi Kita,
Technical experts of International Engineering Dept., ECCJAs the list of participants shows, total number of attendees was 48 including foreign
participants in addition to 42 from Lao PDR.
5.2 Discussions on the Results of the Survey (Barriers in Implementation / Promotionof Energy Conservation Plans and Countermeasures)
The energy situation in the nation of Lao PDR, problems lying in the way of promoting
energy conservation etc. are, as Mr. Khamso of MIH explained in the Seminar, that percapita annual consumption of primary energy in Lao PDR is as little as 0.16 toe and about
half of it is used in households, that laws concerning energy conservation are yet to be laid
down, that the nation’s population is small and scattered in local areas and the resulting
difficulty in energy supply makes a big obstacle, etc.
The importance of the hydraulic power generation in Lao PDR was easily recognizedthrough the current follow-up survey, in which we knew that high-level energy conservation
measures were implemented in Nam Ngum Hydropower Plant and that Mr. Sisoukan
Sayarath, the chief of MIH Electricity Management Division (EMD), took part in a joint
project with JICA to work on the improvement of hydraulic power generation.
On the other hand, as Table Ⅲ-5-1 below shows, domestic power needs are growing anddomestic sale surpassed export and the environmental assessment of large-scale hydraulicpower generation such as Nam Then 2 has been tightened. Thus, the circumstances that
affect hydraulic power generation are changing and it is anticipated to be a future challenge
to advance the development of hydraulic power while coordinating with such changes incircumstance.
5.3 Discussions on the Policy of Creation of Technical Directory for Hydraulic Power
Industry
It was agreed that out of the energy conservation measures implemented in Nam Ngum
Hydropower Plant, the repair of cavitations of the hydraulic turbine that produced the
maximum results was appropriate because of its wide range of impact.
5.4 Discussions on the Policy of Development of Database/Benchmark/Guideline for
Hydraulic Power Industry
As it was the first time we gave explanations on Database/Benchmark/Guideline in Lao
PDR this time, we explained them in detail in the Seminar. We reconfirmed their awarenessof its importance and their consent to the promotion of development of DB/BM/GL.
Specific framework and work-sharing need to be further discussed in the future.

Ⅲ−22

Table Ⅲ-5-1 Highlights of the year

MW
GWh
GWh
GWh
GWh
GWh
Million kip
Million kip

Year
2003
271.5
1,319
229
1,319
884
435
343,785
133,732

Year
2002
271.5
1,570
200
1,538
766
771
242,438
228,173

Percentage (%)
Increase/Decrease
0.00
16.17
14.50
14.23
15.40
43.57
41.80
41.39

Million kip
Million kip
Million kip
Million kip

682,527
509,902
172,627
21,909619,560
500,015
119,545
13.495

10.16
1.98
44.40
61.76

Net Profit
Number of Employees

Million kip
persons

150,7162,930

106,050
2,826

42.12
3.68

Transmission / Distribution Line
115 kV Transmission line

km-circuit

1,013.23

761

33.11

35
22

kV Transmission linekV Transmission line

km-circuit
km-circuit

167
7,969

167
5,916

0.00
34.70

0.4 kV Transmission line
115/22 kV (Substation)

km-circuit
No.

6,261
16

5,993
12

4.47
33.33

Installed Capacity
Number of Transformer

KVA
Unit

322
5,569

281
4,654

14.60
19.66

Installed Capacity
Provincial Agencies

KVA
No.

1,001,730
13

876,905
12

14.23
8.33

Number of Consumer (meters)

No.

355,651

308,024

15.46

Descriptions

Unit

Installed Capacity
Generation of Energy
Import of Energy
Energy Sales
Domestic sales
ExportRevenue from Domestic Sales
Revenue from Export
Finance
Total revenue
Total Expense
Profit (losses) before tax
Corporate tax

Ⅲ−23

Ⅳ. Malaysia (Textile industry)
1. Outline of Activities
We conducted a follow-up survey on a company that underwent an energy audit in theprevious round (January 15-19, 2001) and gave Seminar-Workshop that included reports on
the practical examples of energy conservation in various industries in Malaysia.
1.1 Period
November 22-26, 2004
1.2 Venue
Follow-up survey:
Seminar-Workshop:

Taiping City (about 250km North-northwest of Kuala Lumpur)
Putrajaya City (Suburb of Kuala Lumpur)

1.3 Schedule
November 22 (Mon.)

23 (Tue.)

24 (Wed.)25 (Thu.)
26 (Fri.)

Had a meeting and coordinated the schedule in PTM in Kuala
Lumpur (Pusat Tenaga Malaysia, Malaysia Energy Center) andlater moved to Taiping City.
Visited Arab-Malaysia Development Berhad (AMDB) Co. andconducted a follow-up survey. Moved back to Kuala Lumpur in theevening.
Had a meeting and prepared materials for Seminar-Workshop in
PTM
Held Seminar-Workshop in Marriott Putrajaya Hotel
Reviewed Seminar-Workshop in PTM

1.4 People involved
ACE (ASEAN Center for Energy):
Mr. Weerawat Chantanakome: Executive Director
Mr. Christopher G. Zamora:Manager
Malaysia Focal Point: PTM
Mr. Asfaazam Kasbani:
Program
Ms. Azah Ahmad:
Research Officer, EISD
Technical experts from Japan:
Messrs. Hideyuki Tanaka, Fumio Ogawa and Keiichi Yoneda
Technical experts of International Engineering Dept., ECCJ

Ⅳ-1

2.

Latest Situation of Energy Conditions and Industries in Malaysia

2.1 Energy Situation in Malaysia(1) Overview
Malaysia’s economy has exceeded its forecast GDP growth after achieving real GDP
growth of 5.3% as compared to 4.1% in 2002. Higher volumes of export and lower interest
rate have been able to offset global economic uncertainties due to an outbreak of Severe
Acute Respiratory Syndrome (SARS) during the first half of the tear. Apart from strong
economic fundamentals coupled with supportive monetary and financial policies, the stable
government leadership lends extra weight towards the continuity of positive growth for
Malaysia.
In the energy sector, the final energy demand for 2003 recorded a positive growth of 3.9%,
lower than the previous year’s figure which was 5.6%. On the other hand, final energy
supply marked a 13.4 % growth in 2003 as compared to 0.6 % in 2002.
Overall, growth in the energy sector was driven by both supply and demand factors. The
supply growth was driven by three major factors. First, energy supply grew due to thesuccessful commissioning of four new power plants, which resulted an increase of total
installed capacity in the power sector. Secondly, higher import levels of coal for existingcoal power plants and the completion of PETRONAS's third LNG plant (MLNG3) in
Bintulu to support higher demand of LNG here in Malaysia. .
On the demand side, almost all sectors exhibited growth in their consumption of energy forthe year 2003 with industrial and transport making their mark due to growth of
manufacturing and construction sectors. These developments contribute towards expansionof the Malaysian energy sector(2) Energy Situation in Industry
In 2003, total final energy demand was recorded at 34,586ktoe, an increase of 3.9 percent
compared to 5.6 percent in 2002. This was mainly due to increased spending by consumers
in the industrial and transport sectors. Transport sector remained as the leading consumer offinal energy demand accounting for 41.3 percent after registering an increased of 6.2
percent of growth. The share of industrial sector also increased to 39.0 percent afterrecording 4.8 percent growth from previous year. The growth was largely contributed by
the manufacturing sector, which was supported by increases in exports and strong domestic
demand. The share of both residential and commercial sectors remained about 13 percent
during the same period.
Analysis on the demand of fuel type showed petroleum products decreased
marginally from 62.0 percent in 2002 to 61.2 percent in 2003. Of this share,
motor petrol and diesel were the major contributors at around 34.9 percent and40.3 percent respectively. The share of natural gas stabilized at 17.0 percent
and electricity at 18.3 percent in year 2003.

Ⅳ-2

(3) Energy Situation in Textile Industry
In general, energy in the textile industry is mostly used in the forms of: electricity, as acommon power source for machinery, cooling and temperature control systems, lighting,office equipment, etc.; oil as a fuel for boilers which generate steam; Liquefied
Petroleum Gas (LPG); coal; and natural gas
2.2 Situation of Industry in Malaysia(1) Overview
Malaysia, a middle-income country, transformed itself from 1971 through the late 1990s
from a producer of raw materials into an emerging multi-sector economy. Growth was
almost exclusively driven by exports - particularly of electronics. As a result Malaysia was
hard hit by the global economic downturn and the slump in the information technology (IT)sector in 2001 and 2002. GDP in 2001 grew only 0.5% due to an estimated 11% contraction
in exports, but a substantial fiscal stimulus package equal to US $1.9 billion mitigated theworst of the recession and the economy rebounded in 2002 with a 4.1% increase. The
economy grew 4.9% in 2003, notwithstanding a difficult first half, when external pressuresfrom SARS and the Iraq War led to caution in the business community. Healthy foreignexchange reserves and a relatively small external debt make it unlikely that Malaysia will
experience a crisis similar to the one in 1997, but the economy remains vulnerable to amore protracted slowdown in Japan and the US, top export destinations and key sources offoreign investment. The Malaysian Ringgit is pegged to the dollar, and the Japanese central
bank continues to intervene and prop up the yen against the dollar
During the last decade, Malaysia’s trade expanded by 2.3 times to reach
RM716.6 billion, with exports increasing by 2.6 times to RM398.9 billion andimports doubling to RM317.7 billion. Today, Malaysia is the world’s 18th
leading exporter and 20th leading importer.
The manufacturing sector now accounts for 30.8% of Malaysia’s GDP while exports ofmanufactured goods make up 82% of the country’s total exports. From being the world’s
largest producer of rubber and tin, Malaysia is today one of the world’s leading exporters ofsemiconductor devices, computer hard disks, audio and video products and room
air-conditioners.
Malaysia’s rapid industrialization was the result of the country opening itself relatively
early in the 1960s to foreign direct investments (FDI). Today, its market-oriented
economy, combined with an educated multilingual workforce and a well-developed
infrastructure, has made Malaysia one of the largest recipients of FDI among developing
countries. The Institute for Management Development (IMD) in its 2004 World
Competitiveness Yearbook ranked Malaysia as the fifth most competitive country in theworld (for countries with a population of greater than 20 million), ahead of countries suchas Germany, United Kingdom, Japan and Mainland China. In addition, according to thelatest Offshore Location Attractiveness Index compiled by the global management
consulting firm A.T. Kearney, Malaysia is among the top three contenders for off-shoring

Ⅳ-3

business in the world. In its report, A.T. Kearney considers Malaysia a “natural choice”
for offshore services in view of its low costs, particularly for infrastructure, the most
attractive business environment among emerging markets, and high levels of global
integration. For more details on Malaysia’s expected projected economic growth, pleaserefer to Table Ⅳ-2-1 below.
Table Ⅳ-2-1 Malaysia’s Key Economic Indicators
Malaysia Key Economic Indicators
2003e

2004f

25.0 million

25.6 million

RM229.3 billion

RM241.8 billion(US$60.3 billion)(US$63.6 billion)

4.5%*

5.5%-6.0%

RM14,343

RM14,954(US$3,774)(US$3,935)

Inflation rate

1.5%

1.5 - 1.9%

Labour force

10.5 million

10.8 million

Unemployment

3.5%

3.4%

RM368.9 billion

RM392.5 billion(US$97.1 billion)(US$103.3 billion)

RM306.0 billion

RM325.2 billion(US$80.5 billion)(US$85.6 billion)

Population
GDP

GDP Growth
Per capita income

Total export (f.o.b.)

Total import (f.o.b.)

Major exports

Manufactured goods (electronic products, chemicals and plastic products, wood products,
iron and steel products, metal products, and petroleum products).

Major imports

Intermediate goods (thermionic valves and tubes, primary and processed industrial supplies,
parts and accessories of capital goods, primary and processed fuel lubricants, and parts andaccessories for transport equipment).

e – estimated,f - forecast(Source: " Economic Report 2003/2004" published by the Ministry of Finance, Malaysia)* Actual GDP growth in 2003 was 5.2% (Bank Negara Malaysia 2003 Annual Report)(2) Situation of Textile Industry including Promotion in EE&C
The textile industry in Malaysia was a cottage industry until recent times.

Ⅳ-4

When Singapore began to implement increases of over 200% in the minimum
wage for textile workers over the course of 15 years, textile companies fromSingapore began to relocate across the border. The textile and apparel industryof Malaysia was ranked as the country’s fourth largest export earner in 2001,
bringing in just under $2.7 billion. The workforce of 150,000 employees ranks it
as the second largest source of employment in the country.
The textile industry in Malaysia is divided into two major segments:
fiber-weaving, yarn-spinning, clothing manufacturing and dye and print
industry; and the manufactured garment products and other fabricaccessories-- such as gloves, bags, hats, carpets-- plus textile machinery andequipment.
The apparel sector is facing rising costs of production due to a tight labormarket and increasing wages for workers. The government has approved 218
textile-manufacturing projects. In addition, a large number of textile mills are
known to be operating without any manufacturing license.
Among the major export markets for Malaysia’s apparel industry, the U.S.,
Europe and Canada currently impose annual quotas on the volume of apparelthat can be imported from Malaysia. Malaysia’s Ministry of International
Trade, in turn, sets quotas for individual exporters. However, those quota
restrictions are expected to be lifted in 2005, as part of the Asean Free Trade
Agreement and a general opening of world trade.
Since quotas have driven Malaysia’s textile business, the bulk of exports haveconsisted of “low-end commodity apparel” or items that are manufactured
under contract. In order to compete with countries with lower labor costs (suchas China, Indonesia, Vietnam and Thailand), Malaysia’s industry are now
intending to move into higher-value commodity apparel and specialty markets.
Technical experts agree that the country must also deal with the high cost oflabor, a tight labor market and a lack of research and development.
Malaysia mainly concentrates on being a contract textile manufacturer. Amongthe major world brand names Malaysian manufacturers produce include:
Adidas, Arnold Palmer, Active Wear, BUM Equipment, Calvin Klein, ChristianDior, Gucci, Guess, Donna Karan, YSL, Levi’s, Nike, Padini, Polo, Ralph
Lauren, Reebok, Slazenger, Pierre Cardin, Camel, Mizuno and Montagut. Dueto the situation above, Malaysia’s dyeing, accessories, printing and finishingsub-sectors are lacking and limited to selected products.
Recently, the effect of the SARS epidemic has also hurt the Malaysian industry.
As a result, the Malaysian Garment Manufacturers Association (MGMA) asked
the Ministry of International Trade and Industry to further lower duties onfabric imports from 15% to a 0-5% range. (Tariffs had already been cut from
20% to 15% in 1999.)
Still, the industry’s internal efficiencies must be improved if the country is tocompete when the WTO agreement to eliminate tariffs and quotas comes intoⅣ-5

effect in 2005.For these reasons mentioned above, Malaysian textile
manufacturers realize that energy efficiency is one way of maintaining theircompetitive edge in the world market.
Promotion of energy efficiency and conservation measures has been carried out
in two ways for the Malaysian textile industry. The first of which is indirectly
through the promotion of Cleaner Technology efforts in Malaysia through theStandards and Industrial Research Institute of Malaysia (SIRIM) as theimplementing agency. The second is through the Ministry of Energy, Water andCommunications via Pusat Tenaga Malaysia. Pusat Tenaga Malaysia as theimplementing agency carried out many energy promotion efforts either on its
own or through collaboration with international agencies such as the Energy
Conservation Center of Japan and UNIDO.
1) Cleaner Technology in Malaysian textile industry
As a promotion measures by the Malaysian government for End Of Pipetechnology treatment, there have been specific measures introduced as
investment incentives. To be specific, for companies involved in the storage,
treatment, and disposal of toxic and hazardous wastes, income tax will becharged on only 30% of the statutory income for 5 years, or a 60% investment
tax allowance will be given for capital expenditures for 5 years. Furthermore,
import taxes and sales taxes will be exempted for such machinery, equipment,
raw materials, and components.
Aside from toxic and hazardous waste-related matters, environmental
protection equipment is given an initial tax credit of 40% and an annual
credit of 20% for 5 years. In addition to such tax credits, a commendation isawarded to companies, which contribute to environmental protection. It wasnamed the Hibiscus Award and was elevated in 1999 as the Prime Minister's
Hibiscus Award.
Also, efforts are under way to promote CT. For example, from 1996 to 1998 a
program called The Promotion of Cleaner Technology in Malaysian Industry
was conducted by Standards and Industrial Research Institute of Malaysia(SIRIM), in cooperation with Danish cooperation for Environment andDevelopment (DANCED). This program involved consultation with small andmedium size enterprises (SMEs), demonstration projects, workshops, etc.,
aimed at the dissemination of CT. The target industries were food, textiles
and electroplating. The results of those actions have been summarized in thetable Ⅳ-2-2 2.

Ⅳ-6

Table Ⅳ-2-2 Results of the Promotion of Cleaner Technology
in Malaysian Industry: examples
Industry

Reduction

Pay back time

Food

150,000kWh of electricity

0.5 - 1.5 years

4,200m³ of water
Textiles

136m³ of light fuel oil

1 - 1.5 years

8,000m³ of waterElectroplating

Subsidiarychemical75%of< 3 months

water(Source: SIRIM)
The Food Industry, for example, reduced its consumption of electricity andwater following the introduction of CT. The initial investment required for the
introduction of CT was recovered within 0.5 - 1.5 years. The Textile Industry
reduced its consumption of light fuel oil and water, recovering its investment
within 1 - 1.5 years. The Electroplating Industry reduced its consumption of
additive chemicals and water, recovering its investment within 3 months. It isapparent that CT reduces production costs; and economically speaking it istechnology worth the investment.
2) Energy efficiency in Malaysian textile industry
The second method, by which energy efficiency efforts have been executed, isthrough collaborations with the Ministry of Energy, Water andCommunications as well as its implementing agency, Pusat Tenaga Malaysia.
Long ago in 1992, UNIDO, with the financial support of the Japanese
Government, carried out a regional programme on the promotion andapplication of energy saving technologies in selected Asian developing
countries. This programme was aimed at adopting innovative energy
conservation technologies, developed in Japan, to the conditions of developing
countries. For this reason, a Handy Manual on Textile Industry was preparedby UNIDO, with the cooperation of technical experts from the Energy
Conservation Center (ECC) of Japan, on energy
saving technologies in the framework of the above mentioned UNIDO project.
It is based on the results of the surveys carried out, the plant observations
and the recommendations and suggestions emanating from the Seminars on
Energy Conservation in the Steel and Textile Industries, held under the same
project in January 1992 in Jakarta, Indonesia, and Kuala Lumpur, Malaysia.
Nearly nine years later, ECCJ then proceeded to conduct an energy audit in
one textile factory as requested by the Malaysian government in 2001. The
factory selected, Arab Malaysian Development Berhad Textile Plant was

Ⅳ-7

audited as part of the Promotion of Energy Efficiency and Energy
Conservation activities organized by ECCJ in collaboration with the ASEAN
Centre for Energy (ACE). The factory is a small factory with an annual
turnover of RM 60 million. It mainly produces 100% cotton products alongwith polyester, cotton and viscose blends of the woven type in either dyed orfinished forms. The products are exported to both the local market as welloverseas markets such as Australia, New Zealand and the European Union(EU).
The following recommendations made together with the assistance of thePusat Tenaga Malaysia team members were divided into three mainenergy-consuming areas as follows:¾ Pre-treatment range (Perble range)¾ Stenter (Artos Stenter No. 3)¾ Boiler and steam distribution system
Altogether, the implementation of these measures would provide potential
annual cost savings of up to USD 63,142. Subsequently, having been
impressed with the potential cost saving measures, the factory management
decided to implement some of the measures recommended and executemeasures that were proposed by the in house technical team. Over the courseof the next three years, the following measures were actually implemented by
Arab Malaysian textile plant: - Replacement of old boilers- Reduction of boiler daily operation time
- Improved weekly maintenance of existing steam traps- Auto Temperature Control for steam supply for Washing Basins.
- Convert to Natural Gas burning for our Steam Boiler
By carrying out the combined measures, the factory has achieved annual
savings of USD228,000 that is nearly four times higher than recommended!
This is clearly a key example of how a little promotion by the ECCJ, ACE andPTM can actually go a long way in motivating this factory to achieve major
cost and energy savings. It is hoped that in the future that these energy
audits can be extended by the technical experts from the respective agencies
above to the rest of the Malaysian textile sector.

Ⅳ-8

2.3 Situation in Malaysia(1) General condition
Supplemental data for Table Ⅳ-2-1.
About 330,000 km2 (approx. 0.9 times as large as Japan)
Muslim (Federal religion), Buddhism, Confucianism, Hindu,
Christian, Aboriginal religion- System of government: Constitutional monarchy (Parliamentary democracy)- Economy:
Major industries: Manufacturing industry (electric equipment), Agriculture andForestry (natural rubber, palm oil, timber) and mining (tin, crudeoil, LNG)
Economic growth rate:
7.1% (2004)
Currency:
RinggitFixed exchange rate since September 2, 1998:
US$1 = 3.8Ringgit- General economic condition: Although minus growth was recorded in 1998,
Malaysia’s economy is on a recovery track centered at the
manufacturing industry. Since 2002, positive growth has been
maintained.

- Area:- Religion:(2) Energy situation in Malaysia
The states of energy supply and energy consumption in Malaysia are shown in
Figure Ⅳ-2-1. Malaysia produces ample oil and gas and about half of the
production is exported. Accordingly, oil and gas hold large shares in energy
supply and the share of RE is extremely small among the 4 countries.
In energy consumption, the transport sector is the second, following theindustry sector and over 80% of the total energy is consumed by these two
sectors.

Ⅳ-9

Total Primary Energy Supply(Excluding of use for Power
plant, Oil refinery, etc.)

Total Final Consumption

Coal
Oil
Gas
Biomass
Electricity

Primari Energy Supply
Coal
Oil
Gas
Biomass
Electricity
Total(ktoe)
1085
20633
5073
1505
5919
34215

%
3.2
60.3
14.8
4.4
17.3
100

Industry Sector
Transport Sector
Residential,
Commercial, etc.
Non-energy use

Total Final Consumption
Industry Sector
Transport Sector
Residential, Commercial, etc.
Non-energy use
Total

Figure Ⅳ-2-1 Malaysia -Energy Balance in 2002
(Source: IEA Energy Balance - Edition 2004 -)Ⅳ-10(ktoe)
14231
13437
5914
633
34125

%
41.6
39.3
17.3
1.8
100

3.

Follow-up Survey on AMDB Factory in Taiping

3.1 Outline of AMDB Taiping Factory(1) Company profile- Co. name:- Location:- Capital:- Product:- Production volume:- Market:- No. of Employees:- Operation system:

Arab-Malaysian Development Berhad (AMDB Co.)
Kamunting Industrial Estate, 34600 Kamunting, Taiping, Perak,
P.O. Box 9834008 Taiping, Perak, Malaysia
Tel: +605-891-4000 Fax+605-891-2900
RM 291 million (approx. US$ 11.1 million @26.2RM/US$1)
100% cotton fabric, Polyester-cotton blended fabric,
Polyester-viscose blended fabric, 100% polyester fabric(Production of this type of fabric was started 2 years ago. Dyeing is
outsourced and finishing processing only is carried out in thisfactory.)
9,895,600m (2000)
5,825,747m (2003: 59% of 2000)
4,312,907m (Jan.–Sept. 2004)
Australia, New Zealand, EU, and within the country
243 (2000, Dyeing division)
200 (2004, Dyeing division)
Due to the market condition, production volume dramatically
dropped compared to the time of the previous audit (January 15-19,
2001) and the workforce was downscaled accordingly.
24 hours/day, 3 shifts(2) Dyeing and finish processing flow
Raw cloth → Inspection → Sewing → Gas-singeing → Desizing/Scouring/Bleaching →Mercerizing → Dyeing → Resin treatment → Sanforizing → Inspection → Packaging →Shipping(3) Equipment installed in factory1) Bleaching equipment- Benninger Bleaching Machine (Singeing machine, Bleaching machine, 40-cylinder
drying machine)- Benninger/Switzerland: One unit
- Continuous Bleaching Range (Singeing machine, Perble Range, 40pce-cylinder drying
machine)- Santo Tekko/Japan: One unit
- Mercerizing machine-Santo Tekko/Japan: One unit

Ⅳ-112) Dyeing equipment- Continuous Dyeing Range- Continuous Dyeing Range- 30pce-cylinder dryer- Jigger- Cold Batch Dyeing Machine- Santo Denko/Japan: One unit
- Babcock/Germany: One unit
- Luen Fung/Hong Kong: One unit
- Luen Fung/Hong Kong: One unit
- Babcock/Germany: One unit

3) Finishing equipment- Stenter- Babcock/Germany: 3 units- Curing machine- Bruckner/Germany: One unit
- 5 Bowl Friction Calender Machine - Kyoto Machinery/Japan: One unit
- Sanforizing Machine- Morrison/USA: 2 units- Emerizing Machine- Sucker/Germany: 1 unit
4) Utility- Steam boilers:- Screw-type air compressor:- Water system:- Effluent treatment equipment:

16t/h: One unit, 11t/h: 3 units
8kg/cm2: One unit
Municipal water service = 1,000m3/d,
Pond and underground water =2,500m3/dLagoon treatment(4) Energy consumption status
Energy consumption of AMDB Company is shown in Table Ⅳ-3-1
Table Ⅳ-3-1 Energy Consumption of AMDB Co.

EnergyHeavy oil
Diesel oil

kL
kL

LPG
ElectricitytMWhTotal cost

RM

2000
Consumption
Unit price
5,016
RM0.705/L
827
RM0.643/L
362
2,469

RM1.613/kg
RM0.168/kWh
5,067,331

2003
Consumption
Unit price
3,452
RM0.754/L
231
RM0.851/L
283
1,846

RM1.818/kg
RM0.286/kWh

3,841,046(76% of total energy cost of 2000)(5) Operation status1) As the operation at full capacity was no longer possible due to decreases in thenumber of orders received, only Benninger Bleaching Machine was running atfull capacity in the bleaching process and the capacity operating rate ofContinuous Bleaching Range, which was the central equipment for the

Ⅳ-12

previous audit, was low and its operation was halted at the time of our visit.
2) Although there were 2 continuous dyeing machines, they apparently were placed inoperation alternately depending on the material.
3) Out of the 3 stenters installed for the finishing process, one was completely brought down
and No. 3 machine, which received an energy audit in the previous time, was in operation
all the time with the other one in supplemental operation.
4) Out of the 4 boilers, the newly installed boiler (capacity: 16t/h) was in operation all thetime with the other 3 as standby facilities.
3.2 Summary of the Results of the Previous Energy Audit(1) Selection of equipment for energy audit
This factory has a woven cloth division and a dyeing finish division. Energy used in the
woven material division is only electricity, while the dying finish division consumes avariety of energy, such as electricity, heavy/light oil and LPG and also consumes a large
quantity of water. Accordingly, the focus of the previous energy audit was placed on energy
conservation in fuel used in the dying finish division.
The whole process of dying finish consists of wet process such as scouring/bleaching anddyeing and dry process such as finishing process
The main equipment used in the wet process includes 2 continuous scouring/bleachingmachines, one mercerizing machine and 2 continuous dyeing machines. All of thesemachines have a similar structure consisting of multi-tab washer having cylinder dryer in
its rear end. The main equipment used in the dry process is three stenters
In the previous audit, due to the number of days available, the equipment surveyed was an
old-type Perble Range continuous bleaching machine (hereinafter Perble Range) in theformer process, which was installed in 1971 and apparently caused significant heat loss,
and No. 3 stenter of the latter process. These machines were chosen by request from thefactory.
Steam boilers used in this factory, though they were not the equipment for dying processing,
had a low efficiency of 78% and were considered to be one of the problems to be improved.
It was necessary to promptly start studying modernization of the overall boiler system (interms of boiler efficiency, etc.) including change of boiler fuels.
(2) Suggestions for energy conservation① Recovery of cooling water of gas-singeing machine② Lower temperature setting of Perble Range washers (85–90°C → 80°C)③ Reduction in water and energy consumption by adoption of counter-flow to Perble
Range washers④ Recovery of drainage and waste heat of Perble Range washers⑤ Automatic stopping of water supply at the time of shutdown of machines of Perble
Range

Ⅳ-13

⑥ Energy conservation by replacing temperature controller of Perble Range steaming box⑦ Replacement of steam trap of Perble Range cylinder dryer⑧ Control of residual moisture of cloth in Perble Range cylinder dryer⑨ Control of exhaust air humidity of No. 3 stenter⑩ Modernization of boiler system (including improvement of boiler efficiency)
The energy conservation effect expected from the above improvement plans was estimatedat RM 241,000/y (- US$63,142/y) in total.
3.3 Results of the Follow-up Survey on the Improvements Proposed in the Previous
Energy Audit
Results of the follow-up survey on the progress in the suggestions made in the previous
energy audit are summarized below.
(1) Date of survey:

November 23 (Tue.), 2004

(2) Examiners:

Messrs. Hideyuki Tanaka, Fumio Ogawa and Keiichi Yoneda
Technical experts of International Engineering Dept., ECCJPTM Participants:
Mr. Phubalan Karunakaran, Energy Audit Engineer
Mr. MUhamad Muhtazam Noor Din, Technical Assistant
Ms. Norazean Mohd. Nor, Technical Assistant(3) Interviewees of AMDB Co.:
Mr. Leong Tuck Thoon (Mill Manager)
Mr. Mohd Nayan Mohd Isa (Production Manager)
Mr. Ong Chin San (Operation Manager)
Mr. Zail (Electrical Engineer)(4) Follow-up survey
In the follow-up survey, we made an inspection tour of the factory and had a Q & A timewith top managers of the factory. Although we had obtained the response to thequestionnaire we requested in advance, it was only data on production volume and energy
consumption. AMDB Co. had prepared material on its recent energy conservation
activities.
1) Recovery of hot water from gas-singeing machine was practiced.
2) Repair and replacement of steam trap of cylinder dryer was 50% completed
3) Adoption of counter-flow, temperature control, etc. for water supply in Perble Range willcontinually be included in the agenda because these improvements require investment infacilities
4) Exhaust of No. 3 stenter was under control.
5) The following improvements were practiced after the previous energy audit withsignificant effects

Ⅳ-14

a. Installation of a 16t/h boiler
Improved boiler efficiency:
Effect in money:b. Automatic operation of boilers
Shortened boiler running time:
Effect in money:

78% → 85%
RM720,000/y (= US$189,500/y)
45min/d
RM144,000/y (=US$38,100/y)c. Shifting fuel from oil to natural gas (to be completed in 2005)
Effect in money:
RM 1,600,000/y (=US$421,100/y)
During the current follow-up survey, we confirmed that gas piping was in progressoutside the premises of the factory.
Out of the 10 improvement points suggested in the previous energy audit, 4 plans are
already implemented or are being practiced, resulting in a 40 % achievement ratio. In termsof money, however, compared to the initially expected monetary effect of RM 241,000/y (=US$63,142/y), the saving amount actually attained through these improvements is as much
as RM864,000/y (=US$227,000/y), at this point in time, which is about 3.6 times as muchas that of the initial plan.
If fuel conversion is implemented, the cost reduction benefit will total RM 2,464,000/y(=US$648,700/y), which is over 10 times as much as that expected initially.
What are completed or being practiced are suggestions ①, ④, ⑦ and ⑨. Now that
production volume has dramatically dropped, the capacity operating ratio of machines is
low and accordingly they have apparently not been making significant effects in energy
conservation. (On the contrary, due to the frequent machine shutdowns, energy
consumption per unit quantity of production (energy intensity) may be higher than before).
Energy conservation effects attained are shown in Table Ⅳ-3-2.

Ⅳ-15

Table Ⅳ-3-2

Energy Conservation Effects Attained

Item

Energy conservation effect (RM/y)Initial forecast

Perble Range
Gas-singeing ①
machineWasher②③④⑤⑥

Cylinder
dryer

⑦
⑧

No. 3 stenter
Modernization ofboiler system⑨⑩

Recovery of cooling water

Actual result①Completed

Lower temperature setting④1 section（85 – 90°C → 80°C）
completed
Adoption of counter-flow
Recovery of waste heat②③④⑤⑥⑧241,000
Automatic stop of water supply
Under study(US$63,142/y)following machine shutdown⑦50% completed
Replacement of temperature
controller of steaming box⑨Completed
Replacement of steam trap
Control of remaining moisture ofcloth
Control of emission volume
Replacement of boiler
720,000
Shorter boiler running time
144,000
Boiler fuel conversion[1,600,000](heavy oil → natural gas)
Total
241,000
864,000

As shown in the above table, compared to the amount of cost reduction projected at thetime of the previous audit, that is, RM241,000/y (= about US$63,142/y), the actual result
obtained is RM864,000/y (= about US$227,600), which is about 3.6 as much. As theoperation efficiency was as low as 78% when checked in the previous survey, we proposedcomprehensive modernization of the boiler system that included boiler fuel conversion,
which the top management accepted and implemented after studying. This is a significant
result of this project.
3.4 Results of the Current Survey
The company’s top officials and employees seem to be concerned with energy conservationin their respective capacities under the current circumstances of the company in which its
production volume has been decreasing. Regrettably, however, energy conservation
measures for the processing equipment proposed in the initial survey have not been
advanced sufficiently. Therefore, as an immediate step, we recommended the following lesscostly energy conservation measures during the Q and A time.
(1) What has the largest share in energy conservation in a dyeing factory is saving water, in

Ⅳ-16

principle. At least a flow meter should be installed for each continuous bleaching machine,
continuous dyeing machine, continues washer, etc.
(2) It is easier to control flow volume by cock than by valve, and cock is easier for operators touse. It is recommendable to change to cock-based control when valves are replaced.
(3) As the easiest and cheapest water control method, it is recommendable to insert orifice inwater supply pipe of washing tank.
(4) Currently, warm waste water is discharged by caustic soda recovery equipment. Waste heatshould be recovered by installation of heat exchanger.
3.5 Barriers to the Promotion of Energy Conservation and Countermeasures(1) Good points
1) Improvements concerning utilities
Out of the 10 improvement plans proposed in the previous energy audit in January 2001,
3 plans were put in practice and the remaining 7 were not yet implemented.
Because the effects from increased boiler efficiency after replacement of the boiler and its
shortened running time after shifting to automatic operation were significant, with these
improvements alone, approximately 3.6 times as much energy cut as that initially
expected was realized. In addition, if boiler fuel is converted in 2005, the effect willfurther increase up to over 10 times of the initial plan, realizing significant cost cut.
In 2003, the energy cost for the year was RM3,841,046/y owing to the saved amount of
RM864,000/y. This energy cost saving was equivalent to about 18.4% of that originalamount without energy saving.
The effects achieved from such replacement of boiler and fuel conversion to natural gas
scheduled for near future can be said the outcome of the awareness of energy
conservation and cost reduction that successfully penetrated among top management of
AMDB Company and managers of the factory as the result of the previous guidance of
ECCJ and PTM, which gave them a momentum. In this sense, the previous energy audit
and guidance were meaningful activities.
Fuel conversion, increase in boiler efficiency, etc. are technically not so
difficult know-how. We strongly wish to press ahead with this example case toother companies and/or factories and raise energy conservation performance.
2) Improvements concerning production
The factory of AMDB Company is, as a dyeing processing factory, well managed andalmost no water leakage and steam leakage, which is often seen in small- and mediumsize factories, was recognized. There were no strips of cloth or pieces of trash on the floor.
In dying factories, water leakage and steam leakage often occur unless they are wellmaintained. In factories where steam piping has good thermal insulation and no water

Ⅳ-17

leak and no steam leak occur, quality control of products and delivery management areoften in good shape. In this context, in the case of AMDB Company, the management of
the equipment affecting energy conservation is fairly good, though not sufficient.
(2) Points need to be further improved and worked on in the future1) Energy efficient equipment
Although some measures for energy conservation are taken regarding the dyeing andfinishing processing in the factory, as the production volume sharply decreased by almost
half from the previous guidance and the capacity utilization rate of the major equipment
dropped accordingly, not much energy conservation effects have been achieved.
The factory apparently hesitates over improvement of equipment that requires a large
amount of investment.
Although the top management of the company and general manager and other managerial
class of the factory are concerned with energy conservation, they should be more so. At
least, as mentioned above, they should continue energy conservation activities in a
step-by-step manner starting with improvement plans that do not require a large amountof investment and continue to work on the improvements suggested in the previous audit
to realize them in stages, if possible.
Dyeing and finishing industry consumes a large quantity of water. In this industry, saving
water eventually lead to energy conservation. Effective use of water is essential. In orderto do so, as mentioned previously, the installation of a flow meter to the main equipment
is critical. Meters capable of measuring integrated value and instantaneous value are
preferable. Measuring equipment for basic management is necessary also from theviewpoint of developing/introducing/implementing Database/Benchmark/ Guideline, etc.
It is worth considering.
In the meanwhile, the most important production equipment is aging and need to be
renewed. In Japan and Indonesia, the machining speed of continuous bleaching machineis 100–150m/min, while it was 45–50m/min in AMDB Company.
The important thing in promoting energy conservation is to avoid impairing quality of
product.
Energy conservation and water saving are premised on ensuring stable and good quality.
Even though labor cost is low, manufacturers cannot win international
competition without improved productivity, stable quality and reliable
delivery. If they fail to meet quality and delivery demanded by the time, themarket will turn away. How to recover order volume that decreased by halffrom 3 years ago will be a big challenge for the time being.
2) Promotion of energy conservation
For factories of a certain scale, it is desirable to assign person such as “Energy
Conservation Officer”, who has knowledge of energy conservation, to each job place. It
would be one way to regularly convene “Energy Conservation Committee” to discussspecific measures for implementing energy conservation, while enhancing the morale of

Ⅳ-18

the entire workforce for energy conservation.
In the meanwhile, as the number of technical experts who actually carry out energy
conservation is apparently small in the textile department, the education and training oftechnical staff are also critical.
As one of the measures to help promote the awareness of energy conservation amongcorporate management, administrative measures, such as incentives and preferential tax
treatment for companies that have made significant effects and subsidies for investments
in energy-efficient equipment, may be necessary.

Ⅳ-19

4.

Results of Seminar-Workshop

4.1 Summary
Seminar-Workshop was given as described below.
(1) Date and time
November 25 (Thu.) 2004 8:30-16:40(2) Place
Marriott Putrajaya Hotel(3) Reports and Presentations made in Seminar-Workshop
The program is contained in the attachment.
(4) Participants
A list of attendees is contained in the attachment.
Attendees included the following persons from foreign countries
ACE:
Dr. Weerawat Chantanakome, Executive Director
Mr. Christopher G. Zamora, Manager
Foreign presenter
Mr. Djoko Wiryono, Manager, PT KERTAS LECES (PERSERO),
Indonesia
Technical experts from Japan
Messrs. Hideyuki Tanaka, Fumio Ogawa and Keiichi Yoneda
Technical experts of International Engineering Department, ECCJ
In this Seminar-Workshop, 90 persons participated. They consisted of 26 persons from
Malaysia governmental organizations, 58 persons directly related to companies and 6
persons from foreign countries.
The participants were engaged in enthusiastic discussions to the end. This
Seminar-Workshop, on the whole, was concluded with great success. The following factors
contributed to this success.
① The ECCJ side could have a preliminary meeting with ACE and PTM on the previous
day and time for preparing the updated Agenda and handouts. Participants could
understand the overall structure of the Seminar-Workshop and individual subjects.
Particularly, PTM prepared a nice file and distributed to all participants.
② As all the proceedings went in English and no interpreter was required, time was usedefficiently. MC did a good job and the entire course of the session went smoothly almost
as scheduled③ Each presentation had substantial content and all participants were enthusiastically

Ⅳ-20

involved in the session to the end. There were lively questions and answers withparticipants.
PTM distributed a CD-R containing a photo of this Seminar-Workshop andpresentation material to participants. PTM looked to have a lot of experience insponsoring this kind of seminar.

Photo Ⅳ-4-1 Seminar-Workshop Presenters and Malaysia VIP

4.2 Discussions on the Results of the Survey (Barriers to Implementation/ Promotionof Energy Conservation Improvement Plans and Countermeasures)(1) Opening ceremony
1) The opening address by Mr. Weerawat (ACE) covered a wide range of tops, from rapid
increases in oil price and the meaning of the PROMMEC project to the introduction of
the ASEAN Energy Competition Award system and the outline of the program of the day.
2) Mr. Tanaka (ECCJ) gave an address of thanks on behalf of METI and ECCJ andmentioned Japan’s contributions to this project and the meaning of the theme of thecurrent project.
3) Representing Malaysia government, Mr. Roy (substituting Dr. Halim, Vice Minister ofEnergy) gave an address. He reported that with the intention to cope with the recent
skyrocketing crude oil prices, a committee was set up in the cabinet, which would aim atdevelopment of alternative energy sources, particularly practical use of renewable energy(Vision). In his comprehensive speech, he said “The government also is an energy
consuming body and must exemplify itself as a good model. Our office in Putrajaya is alow energy consuming office and energy consumed in this building is about half of thatin a conventional building.”

Ⅳ-21

(2) EE&C activities in the glass product manufacturing industry (Mr. Ashok Rao, Malaysia)
Receiving energy audits by PTM, they are involved in energy conservation improvement
activities.
1) Although the glass-making industry is an energy-intensive industry, it produced results inenergy conservation owing to energy audits by PTM.
2) For improvement of glass melting furnace, technologies of Asahi Glass, Co., Ltd. were
utilized.
3) While electric consumption accounts for 13% of the total energy consumed, electriccharge has a 37% share in the total energy cost and more measures should be taken for
efficient use of energy.
4) For an ultimate goal set at 4.8GJ/t-Glass, efforts are being made.
(3) Food product industry (Mr. Hishamudin Ibrahim, PTM, Malaysia)
1) This is a case in which an energy audit was given as part of PTM operation and under thegovernment reinforcement program. Audit fee was not charged to the company
accordingly.
2) They achieved cost reduction by RM1,761,000/y through recovery of waste heat ofmanufacturing process, enhancement of thermal insulation of piping, maintenancemanagement of steam trap, improvement of cooling system, etc.
(4) Textile industry (Mr. Phubalan Karunakaran, PTM, Malaysia)
He made a report on energy conservation efforts in a textile factory of AMDB Company
given in the foregoing item.
1) An energy audit was conducted with the focus on energy intensive processes; Perble
Range continuous bleaching machine and No. 3 stenter and boiler system.
2) Cost reduction by RM864,000/y was realized due to shortened operating hours of boiler
because of replacement of the old-type boiler and upgraded boiler efficiency. This
amount corresponds to about 3.6 times as much as that forecasted in the audit.
3) If boiler fuel conversion (oil → natural gas) scheduled for 2005 is completed, an
additional cost reduction by RM1,600,000 will be possible.
(5) Barriers/Measures (Mr. Ogawa, technical expert of ECCJ)He listed the following 7 items as barriers to energy conservation and proposed
countermeasures for each item.
PROMEEC project is one of effective measures to get over these barriers• Policy• Human Resources• Technology

Ⅳ-22• Finance• Information• Inadequate Local Manufacturing Capability• Society/Culture
4.3 Discussions on Policy of Developing Technical Directory for Textile Industry Use
ECCJ explained basic points on Technical Directors. In responding to the questions made inadvance from the audience, such as “Where can we obtain the latest information on energy
conservation?” ECCJ introduced ECCJ homepage for information source. Concern about
energy conservation and interest in activities of ECCJ are apparently high in Malaysia.
4.4 Discussions on Development of Database/Benchmark/Guideline
ECCJ explained using the material for each item. In Malaysia, DB/BM is already put inpractice and Mr. Asfaazam made a supplementary explanation on this point.

Ⅳ-23

Ⅴ. Myanmar (Oil Refining Industry)
1. Outline of Activities
As regards Myanmar, in 2001, which is the first year of Phase 1 of this project for promotionof energy conservation in ASEAN countries, Mann Thanbayakan Oil Refinery operated by
Myanmar Petrochemical Enterprise (MPE) under Ministry of Energy was selected for the
subject of survey and an energy audit was conducted from December 18 to 22 in 2001.
In 2004, which is the first year of Phase 2, we revisited the refinery and checked the progressstatus of the recommendations for energy conservation made in the previous energy audit. In
addition, we selected another oil refinery as an additional subject of our survey andconducted an energy audit.
1.1 Period
December 8-15, 2004
1.2 Venue
Follow-up survey:

Mann Thanbayakan Oil Refinery (about 500km north of Yangon
city)
Walk through energy audit of a newly selected factory:
Thanlyin Oil Refinery (suburb of Yangon city)
Seminar-Workshop:
Yangon city

1.3 Schedule
December 8 (Wed.)
9 (Thu.)10 (Fri.)
11 (Sat.)12 (Sun.)13 (Mon.)
14 (Tue.)
15 (Wed.)Moved by a land route to visit Mann Thanbayakan Oil Refinery(about 14 hours)
Conducted a follow-up survey of the refinery
Moved back by road to Yangon city (about 12 hours)
Prepared/compiled material and studied
Same as on Saturday
Visited and conducted an energy audit of Thanlyin Oil Refinery.
Gave Seminar-Workshop
Compiled material

1.4 People Involved
ACE (ASEAN Center for Energy):
Mr. Christopher G. Zamora: Manager
Myanmar: Myanma Industrial Construction Services (MICS), MOI No.2
U Aung Kyi:
Director, MICS, MOI No.2 [Focal Point for Myanmar]
U Tin Oo:
Head of Division, MICS [Assist of U Aung Kyi]
Technical experts from Japan: Technical experts, International Engineering Dept., ECCJ
Messrs. Hideyuki Tanaka and Fumio Ogawa

Ⅴ-1

2.

Latest Situation of Energy Conditions and Industries in Myanmar

2.1 Energy Situation in Myanmar(1) Overview
Myanmar is richly endowed with natural resources of commercial Energy and Biomass.
Economic growth in Myanmar has been in the upward trend and would continue to be so in
the years to come. According to this reason, Energy consumption in nation also has been
increased proportionately. Yearly increasing of Primary Energy Consumption by type is asfollows:
Table Ⅴ-2-1 Primary Energy Consumption by TypeType
Commercial Energy- Crude Oil- Natural Gas- Hydro- CoalBiomass
Total

1998/
1999

1999/
2000

2000/
2001

(Thousand toe)
2001/
2002/
2002
2003

1583
1386
365
44
7386
10764

1820
1311
399
55
7769
11354

1983
1205
728
85
7825
11826

1991
1033
701
72
8036
11833

1924
1264
858
77
8249
12372

Exploration and production of crude oil and natural gas in Myanmar onshore andoffshore areas, Multi-national companies are in cooperation with Myanma Oil &Gas Enterprise (MOGE) under the Ministry of Energy on a production sharing
basis. In 2003-2004 financial year, total production of onshore crude oil andnatural gas are 4327804mmbbls and 50,069.83mmcf each.
65 % of natural gas produced by MOGE is used for electricity generation by gas
turbines, 14% by Petrochemical plants and remaining 21% by Industries.
Energy Related Organizations in Myanmar are as follows:-- Ministry of Energy- Ministry of Electric Power- Ministry of Mines- Ministry of Forestry- Ministry of Science & Technology

Ⅴ-2= Oil & Gas= Electricity (Including Hydropower)= Coal
= Biomass & Fuel Wood
= Renewable Energy(2) Energy Situation in Industry
The total amount of sectorial energy consumption for 2002-03 financial year was
10699.78KTOE: Transport 10.82 %, Industry 5.76%, Services 1.0%, Residential
80.78%, Agriculture 1.15% and others 0.49%.
The growth rate of energy consumption by industry sectors for financial years from1994-95 to 2002-03 are 4.39 % , 3.94 % , 4.67 % , 5.87 % , 5.29 % , 5.46 % , 6.05 % ,5.55 % and 5.76 % respectively.
(3) Energy Situation in Oil Refinery Industry
There are three refineries in Myanmar and operated by Myanma PetrochemicalEnterprise (MPE) under the Ministry of Energy. These are No.1, Oil Refinery inThanlyin, No.2, Oil Refinery in Chauk and Petrochemical Complex in
Thanbayakan. However, as these refineries have been in operation for many years,
the present refining capacity is about one third of manufactures' name plate
capacity.
In order to fulfill the requirement of the petroleum products of the country, theMPE had refined 138456 million gallons local crude oil and 110108 million gallons
Yetagun condensate during 2003-2004 financial year.
In order to meet the growing demand of petroleum products in Myanmar, theserefineries are required to be revamped and renovated, to refine more petroleum
products.
2.2 Situation of Industry in Myanmar(1) Overview
In Myanmar, present condition of the industrial activities belongs to the threesectors, State 3 %, Cooperative 1 % and Private 96 %.
The main industrial policy of the governments had been import substitution,
export promotion and utilization of local resources. The economic development
objectives always stressed on agricultural development and then the promotion ofindustries based on agriculture. Within these polices and objectives, the private
small and medium enterprises (SMEs) had survived and grown contributing
substantially to the national gross domestic product. The existing large enterprises
are not large and powerful enough as in the developed countries to influence thesmall and medium-sized enterprises operation and growth.
The industrial enterprises in Myanmar had been classified into three groups in the
Private Industrial Enterprises Law promulgated in November 1990 as shown
below.
1) Large Industrial Enterprises
Capital Outlay
Annual Production Value-

Ⅴ-3

More than 5More than 10

Million Kyats
Million Kyats

Electrical Power used
Labour-More than 50H.P
Above 100 Numbers

2) Medium Industrial Enterprises
Capital Outlay
Annual Production Value
Electrical Power used
Labour-More than 1 Million Kyats
More than 2.5<10 Million Kyats
More than 2.5<50H.P
51 to 100 Numbers

3). Small Industrial Enterprises
Capital Outlay
Annual Production Value
Electrical Power used
Labour-Up to 1 Million Kyats
Up to 2.5 Million Kyats
3 to 25H.P
10 to 50 Numbers

SMEs in Myanmar can be found not only in the private sector but also in the Statesector. The largest number of SMEs depends upon the agricultural production
which accounts for 38 percent of gross domestic product. Rice milling, wheat flour
mills, oil mills, small scale sugar mills, production of palm sugar, cleaning and size
separation of beans and pulses etc., are all agriculture based industries scattered
all over the country.
There are private small and medium enterprises in other sector of the economy
such as tourism, transportation, mining and services. Although no definite figures
are at present available, a rough estimation indicates the number of SMEs in the
country as about 2 million.
In Myanmar, after the adoption of market economy in 1998, the private sector had
grown appreciably in all sectors of national economy. In 1996-97, the state-owned
industries contributed 28.7 % of Gross Domestic Product while the cooperative andprivate sectors contributed 0.9 % and 70.4 % respectively. The State-owned
industries are much larger and more capital intensive than the private ones.
These small and Medium industries are scattered all over country but the majority
are situated in Yangon and Mandalay. The government is now making
arrangements to relocate these SMEs previously operating in residential areas, inindustrial zones close to the cities and towns. Already 6 industrial zones in Yangon
and 2 in Mandalay have been constructed with all necessary facilities. The
development of these industrial estates was a great step forward in theindustrialization process.
Myanma industrial policy emphasizes on the following points: -① The industrial activities belong to the three sectors, namely, State, Cooperative andPrivate.

Ⅴ-4

② The cooperative and private sectors can be permitted to undertake those industries
which were classified under the State sector by the government notification.
③ The manufacture of defence equipment and materials is reserved as belonging to
the defence industries.
④ Encouragement will be given to those industries which are based on local natural
resources.
⑤ The development of industries will be in accordance with the economic policy "Theinitiative to shape the national economy must be kept in the hands of the State andthe national peoples".
In order to accelerate the present of industrialization, Myanma Industrial
Development Committee (MIDC) was formed on 18 July 1995.
The objectives of Myanma Industrial Development Committee are as follows: -① Development of Industries with agriculture as the base.
② Enhancement of quantity and quality of industrial products.
③ Increased production of new types of machinery and equipment.
④ Production of machinery and equipment for industrial use.
⑤ Creation of suitable conditions for changing over to unindustrialized state.
(2) Situation of Oil Refinery Industry including Promotion in EE&C
1) The refining capacity and process plants of each of these refineries are as follows:a. No. 1 Oil Refinery (Thanlyin)
Location- Thanlyin Township, Yangon Division
Year Built- COD (A) 1957 (6,000 BPSD)
COD (B) 1963 (14,000 BPSD)
COD (C) 1980 (6,000 BPSD)
Capacity- 26,000 BPSD of Crude oil
Contractor- COD (A) - Foster Wheeler Co. (England)
COD (B) - Foster Wheeler Co. (England)
COD (C) - Mitsubishi Heavy Industries Ltd. (Japan)
Process Plants - Crude Oil Distillation Units A, B & C, SBP Plant,
Delayed Coker Plant, Lube Blending Plant LPG Terminal,
Candle Factory, Drum Manufacturing Plant, 6 MW Power
Plant
b. No.2 Oil Refinery (Chauk)
Location
Year Built
Capacity-

Chauk Township, Magway Division
1954
6,000 BPSD of Crude oil

Ⅴ-5

Contractor
Process Plants-

Foster Wheeler Co. (England)
Wax Extraction Plant, Candle Factoryc. Petrochemical Complex (Thanbayakan)
Location- Min Hla Township, Magway Division
Year Built- 1982
Capacity- 25,000 BPSD of Crude oil
Contractor- Mitsubishi Heavy Industries Ltd. (Japan)
Process Plants - Topper, Reformer, Delayed Coker, Naphtha HDS,
Kerosene Smoke Point Improving & LPG Recovery Units
2) Application of Energy Conservation in Mann Thanbayakan Oil Refinery
For energy saving purposes, the following measures are being carried out.
- Fuel consumption for heaters & boilers are monitored and maintained at optimum
condition.
- Burning efficiencies of burners are improved, the excess air content of flue gases aremeasured once a week.
- Air registers from burners and dampers of furnaces are adjusted to minimum open
position.
a. Measures on Energy Audit's Recommendations
Energy Audits form ECCJ visited Mann Refinery in December, 2001 and advised forenergy conservation matter. Some recommendations had been undertaken and some
could not implement as yet due to lack of spare parts and technical condition.
- Air leakages from furnaces are repaired as necessary.
- Steam leakages, steam traps and insulation are replaced and repaired.
- According to design, low pressure off gas from Topper overhead drum was vent out
to flare. To conserve the energy, this off gas had been recovered and burned at pilot
burners of Topper furnace since 1990 saving some 72,000 cu-ft of Associated Gas
daily.
b. Recommendations for energy conservation- To decrease the excess air in boilers Actions had been taken and excess air contents influe gases measured on 3-12-04 were as follows:
BoilerExcess air %B (Oil-fired)
31.72
C (gas-fired)
20.8- To reduce the excess air of Topper heater (from 62.5% to 20%)
The heater is combined fuel (gas & oil) fired. Excess air flue gas was 48% (measuredon 1-12-04). Further improvement is to be carried out during next shut-down period.
- To repair part of the boiler wall to prevent heat loss.
Additional fillings of glass wool and repairing of castable (insulation cement) werecarried out. Improvements are thus observed.

Ⅴ-6

- To maintain steam traps in good conditions.
Some were replaced and some were repaired as necessary. But some damaged traps
are still out of service due to lack of spare parts.
- Reduction of steam leakages from flanges, stem of valves.
Repaired as necessary. Further steam leakages will be eliminated at boiler shut-down
periods.
- To charge Topper bottom product (TC) directly to Coker unit.
Charging of TC directly to Coker will decrease the gas absorbing efficiency of Coker
gas oil used in absorber. This will cause escape of some LPG to fuel gas system
reducing LPG yield. At present, Coker unit is producing maximum LPG to meet thedomestic demand that this item is only under consideration. The plant is normallyoperated low load with longer operation time for the following reasons:The Crude oil received is insufficient for high load operation.
To prevent additional energy consumption for frequent shut downs and start-ups.
Some coolers are heavily corroded, thus many tubes are plugged.
To prevent from thermal stress occurrences during intermittent plant operations.
- To reconsider production planning.
Full load operation for short time and longer idle time (or)Longer operation time and longer circulation time to minimize shut down.
- Recover the heat of Heavy Gas oil (HGO) Installation of an additional exchanger
between Kerosene heat exchanger and Light Gas Oil heat exchanger is planned.
3) Modification of Thanlyin Refinery
Thanlyin Refinery is currently processing the Condensate from Yetagun Offshore field inplace of Crude Oil with two Crude Oil Distillation Units of "B" and "C", while Unit "A"is shut down due to old age with undesirable heavy consumption of utilities. The
processing capacity of the existing units are limited to about 40 to 50 % of its design
capacity 20,000 BOPD due to bottle neck of fire heaters and tower overheads as well as
low efficiencies of Heat Exchanging System, hence suppressing the refined products at alow level even though the import of transport fuel is gradually increasing. Therefore
there is an imperative requirement for the existing distillation units and accessories ofThanlyin Refinery to be upgraded for efficient energy utilization to enhance production to
fulfill the ever increasing demand of petroleum products in the country.
The following items were nominated for efficient energy use:a. Modification of Distillation Unit (B)b. Modification of Distillation Unit (C)c. Modification of Cooling Water System
d. Addition of Equipments & Spare Parts for MHI Power Plant
e. Addition of Equipments & Spare Parts for Coker Plant
f. Addition of Equipments & Spare Parts for Tank Loading/Tank Inventoryg. Replacing/ Renewing Parts of Some Utilities/Facilities

Ⅴ-7

2.3 Situation in Myanmar(1) General condition-Area:
680,000 km2 (approx. 1.8 times as large as Japan)
Population:
52,170,000 (Myanmar Government Statistical Year Book 2002)
Religion:
Buddhism (90%), Christian, Muslim, etc
System of government:
Military government (interim government)
Economy:Major industry: Agriculture
Per capita GDP: US$180 (2003 IMF World Economic Outlook 2003)
Economic growth rate:over 10% (2002 by the government’s announcement)
Currency:
Kyat, US$1 = 5.86 Kyat (official parity rate) (as of August 2004)(2) Energy situation in Myanmar
The states of energy supply and energy consumption in Myanmar are shown in Figure Ⅴ-2-1. Although the country produces oil and gas, their quantities are hardly sufficient andthe quantity of oil production is a little over 40% of the domestic oil consumption. As thedomestic gas consumption level is still low, more than 80% of the gas production isexported. RE has an 80% share in energy supply and it is extremely high among the 4
ASEAN countries surveyed. In consumption, the civil sector accounts for 80% of the total
and the industrial sector’s share is less than 10%. It would be important to raise energy
conservation activities in the industry from now.

Ⅴ-8

Total Primary Energy Supply(Excluding of use for Power
plant, Oil refinery, etc.)

Total Final Consumption

Coal
Oil
Gas
Biomass
Electricity

Industry Sector
Transport Sector
Residential,
Commercial, etc.
Non-energy use

Total Final Consumption (ktoe) %Industry Sector
920
8.0
Transport Sector
1155 10.0
Residential, Commercial, 9539 82.0
Non-energy use
9
0.0
Total
11623 100

Primary Energy Supply (ktoe) %
Coal
44
0.4
Oil
1487 12.8
Gas
230
2.0
Biomass
9408 80.9
Electricity
192
3.9
Total
11622 100

Figure Ⅴ-2-1 Myanmar -Energy Balance in 2002
(Source: IEA Energy Balance - Edition 2004 -)

Ⅴ-9

3.

Follow-up Survey of Mann Thanbayakan Oil Refinery

3.1 Outline of Mann Thanbayakan Oil Refinery
This oil refinery is located far upward from Yangon in the upstream of the Irrawaddy River.
As most of typical oil refineries in Japan are so, normally oil refineries are constructed near
the sea in the light of convenience for receiving crude oil and shipping oil products. The
location of Thanbayakan oil refinery was apparently decided for a strategic reason(including development of the region) in addition to its nearness to the producing district ofdomestic oil.
This oil refinery was constructed by Mitsubishi Heavy Industries, Ltd. under the economic
aid from Japan’s former OECF (Overseas Economic Cooperation Fund) in 1982 and its
operation was started in 1984. (Since around the time when the construction was completed,production volumes of the oil field began to decrease and the scheduled commissioning wasdelayed due to the shortage of crude oil.)In December 2001, an energy audit on this oil refinery was conducted by Mr. Kise and Mr.
Noka of ECCJ and reported in detail in the 2001 report.
3.2 Summary of the Previous Energy Audit
As can be seen in the attachment and the relevant report (2001), the following
recommendations were made in the energy audit in 2001.
(1) Reducing percentage of excess air in boilers (B and C)
The following numerical targets were set based on the Japanese standard values andmeasurements on the site.

BoilerActual percentageof excess air

Target percentageof excess air

35.7%
33.6%

30%
20%

B (Heavy oil combustion)
C (Gas combustion)(2) Reducing percentage of excess air in heating furnace of atmospheric distillation unit
There are comments in pages I-23 and I-28 of the previous energy audit report as follows
respectively; “In cases where there is only a limited amount of crude oil and frequent shuts
and starts of equipment take place, as in the case of this oil refinery, production planning is
considerably important in terms of energy conservation.” “The excess air can be reducedby changing the production plan to increase the current low rate of operation during
operating periods and extending the non-operational period. The average (62.5%) of
measured values was used as the current amount of excess air. Assuming that this excess
air could be reduced to 20%, savings in heating value were calculated.”(3) Direct feed of bottom oil of atmospheric distillation column (topped crude) to coker
Bottom oil of the atmospheric column (or topped crude) remaining at comparatively highⅤ-10

temperatures (design value 159°C, measured value 150°C) is cooled with water to drop
into the tank, while in the coker unit, material fed from the tank is heated before it is used.
Therefore, possible significant energy conservation from direct feeding of material to thecoker was proposed.
(4) Effective use of heat of HGO
As HGO that is still at high temperatures (design value 180°C measured value 160°C) is
cooled with water, effective use of heat should be sought through the installation of heatexchanger with crude oil (The utilization of the heat exchanger of the reformer, which iscurrently out of operation, was also studied).
(5) Maintenance and replacement of steam traps
In the previous audit, the actions of steam traps randomly chosen were checked. Based on
the results of this checkup, maintenance and replacement were proposed.
3.3 Results of the Follow-up Survey on the Recommendations Made in the Previous
Audit
This refinery is located about 500 km northward from Yangon. Although we could flown to
Mandalay and move from there by car, we moved all the way by car because there were notmany flights available and we were afraid that we might be tied to the schedule. As it took
more than 12 hours one way including lunch time and breaks, it took 3 days to complete thetrip. There was no choice for accommodations other than the guest house of the refinery.
The current follow-up survey is summarized below.
(1) Date of survey:
December 9 (Thu.) 2004, 8:30 - 17:30(2) Venue:
Petro-chemical Complex (Mann-Tan Payar Kan) Minhla, Magwe Division, Myanmar(3) Visitors
Auditors:

Messrs. Hideyuki Tanaka and Fumio Ogawa,Technical experts, International Engineering Dept., ECCJ
Participants (from the government and the company, accompanying from Yangon):
U Aung Kyi:Director, MICS, MOI No.2 (Focal Point for Myanmar)
U Tin Oo:
Head of Division, MICS, MOI No.2
U Than Htoon Deputy Director (Planning), MPE, MOE(4) Interviewee:
On the Company’s part: Mann Oil Refinery (MOR), Myanma Petrochemical Enterprise(MPE), Ministry of Energy (MOE)U Tun Myint: General Manager

Ⅴ-11

U Zaw Win:
Deputy General Manager (Production)
U Zaw Win:
Deputy General Manager (Planning)
U Aung Dwe: Assistant General Manager (Planning)
U Myo Chit:
Deputy Assistant General Manager (Planning)
U Than Tun:
Deputy Assistant General Manager (Production)
U Myo Maung Maung: Deputy
AssistantGeneralManager(Prod.-Coker)nd
U Tun Win:2 Eng. (Maint. & Oper.), Boiler & Utility Dept.
(5) Current status of Mann Oil Refinery
The overall condition of the refinery has not changed since the audit of 3 years ago.
However, they have continued strenuous efforts to secure crude oil since then and as aresult, they made a little improvement from 35% capacity utilization rate of 3 years ago to
40% of today, compared to Mann’s designed crude oil processing capacity of 25,000
barrels /day based on 100% Mann crude oil.
They also tried to streamline their operation and reduced its work force from 1053 to 980
employees. Profit also is currently improved up to 2 million kyat per month.
All participants in the survey (Mr. U Aung Kyi of Myanmar FP, Mr. U Than Htoon of MPE,etc.) and people concerned of Thanbayakan Refinery including Mr. Tun Myint, General
Manager and other staff members were serious, cooperative and friendly. They had
prepared answers to the questionnaire we had requested them in advance.
However, the management of the refinery itself is confronted with such fundamental
problems as aging equipment, chronic shortage of raw material, shortfall of fund, etc. andthey apparently could not pay attention to efficient use and conservation of energy. They
seemed to be working hard on improvements under many constrained conditions.
On the day of the survey, we toured the site following discussions on the answers to ourquestions. In the afternoon, we made commends for improvement regarding the material
for Seminar-Workshop on December 14 (* Attachment) prepared by them.
*Power Point material to be presented by MPE on December 14. “Experiences andApplication of Energy Conservation in Mann Thanbayakan Oil Refinery”
The current conditions of product production, facilities operation, and energy consumption
are given below.
1) Product production status
First, we confirmed the way they took statistical figures. Their fiscal year starts in Apriland ends in March of the ensuing year. Accordingly, the latest data at the time of audit of
3 years ago is that for the period from April 2000 to March 2001 and this will be used as
the basis for comparison. The latest figures obtained this time are those for the period
from April 2003 to March 2004. (Hereinafter the former is called FY 2000 and the latter
FY 2003 for convenience’s sake).

Ⅴ-12

Photo Ⅴ-3-1 Refinery Tower of Thanbayakan Oil Refinery(Atmospheric Distillation Plant, etc.)

As regards the quantity of crude oil processing, this refinery had suffered chronic
shortage of row material. The designed crude processing capacity at the time of
construction was 25,000 barrel/day based on 100% of Mann crude oil. However when
the construction was completed and commissioning was started, declines in the quantityof crude oil production were obvious and therefore the schedule for launch was
postponed so that the time for storing crude oil could be gained. Owing to the efforts
made by people involved afterward (a and b below), the quantity of crude oil processing
increased as follows;a. Receiving crude oil not only from Mann but also oil fields in neighboring areas bypipeline (about 60%)
b. Changing the initial plan and converting 2 piers for shipping of products (one is forcommon uses for products/crude) to receiving crude oil by barge (about 40%)

Crude oil processing volume

FY 2000
410,800

Ⅴ-13

FY 2003 (Unit: kL/y)498,000

Photo Ⅴ-3-2 Discussions Held in Thanbayakan Oil RefineryIn other words, while crude oil processing volume per calendar day in FY 2000 was
7,080BCD, it was 8,580BCD in FY 2003, which is an increase by about 21%. Behind
this successful increase, many strenuous efforts were made. Raw material is in a wide
range of conditions from condensate to heavy crude oil (of specific gravity evenexceeding 0.9). It would have been extremely hard to adjust the operation of processunits depending on the property of raw material (while making efforts to save energy).
(BCD: Barrel per Calendar Day)
The kinds of product and production shares have not changed dramatically from 3 years
ago. Production volumes of major products are shown below.
Major product

FY2000FY2003Motor gasoline

98,000110,000

Diesel oil

190,000

240,000

Heavy fuel oil

50,00032,000(Unit: kL/year)

LPG is produced in two kinds, propane and butane and they are filled into cylinders to be
shipped out. As gasoline is, as Whole Range Naphtha, treated with Merox processing(Merox Extraction or Merox Sweetening) and just blended with COG (without going
through reforming processing), its octane number is roughly between 65 and 70.
Kerosene is produced as ATF (jet fuel). Diesel oil (HSD) is produced from light gas oiland heavy gas oil, and COG is mainly used for home fuel use. Because this refinery is ahydro-skimming type refinery that does not have a cracking units (in addition, theoperation of the secondary treatment units is minimized), the production pattern is almost

Ⅴ-14

definitely determined depending on the combination of raw materials available.
2) Facilities operation status
As detailed in the 2001 report, the major facilities include the following;
Processing facilities:
Atmospheric distillation unit, coker
Offsite facilities:
Crude oil tanks, product tanks, shipping facilities
Utilities:
Boiler, Electricity receiving equipment
For the reasons mentioned in the preceding item, the operation status of the facilities(standing idle of splitter, for example) has not much changed from 3 years ago. However,
the way of operation of atmospheric distillation unit (CDU or Topper) changed a littlecompared to that in 3 years ago. This will be related to our later discussions on energy
conservation.
At the time of the previous audit:
According to P. I-22 of the report prepared in March 2002 (NEDO-IC-01ED05),“Operation is performed at the rate of 35% of the equipment capacity. For the
standard operation pattern, the operation is continued for 20 days, and is thereafter
stopped for 10 days.”
At the time of the current survey:“The operation is continued as much as possible and when it is inevitable due to theshortage of raw material, the operation is suspended in a status of Hot Circulation.”
As a result, the number of operated days including days in Hot Circulation increased to
305 in FY 2002 and 315 in FY 2003.This way goes against energy conservation and does
not follow the recommendation proposed by technical experts of ECCJ in the previous
audit. This will be examined in the item 3.3 “Results of the follow-up survey on therecommendations made in the previous audit” below.
3) Energy consumption status
In this refinery, the following 3 kinds of fuels are used.
a. AG (Associated Gas)b. HFG (Off Gas from CDU and Coker)
c. HFO (Coker Gas Oil)The consumptions of these fuels are shown in a unified unit of GJ in Table Ⅴ-3-1.
(As the quantity of AG is subject to the condition of production in oil field, the balance ismade up for with HFO.)

Ⅴ-15

Table Ⅴ-3-1 Actual Fuel Consumptions
Fuel consuming equipment
BoilerAG
HFO
Atmospheric distillation apparatus
AG＋HFG
HFO
Coker
HFG
Total

(Unit: 103GJ/y)
FY 2003

FY 2000
386
56

258
253

36
126

22
238

272
876

312
1,083

All electricity used is bought from external suppliers and actual electric consumptions areshown in Table Ⅴ-3-2.
Compared to 3 years ago, fuel consumption dramatically increased (due to increases inquantity of crude oil processing) and electric consumption slightly increased.
Table Ⅴ-3-2 Actual Electric Consumptions
Electricity consuming facilities
Atmospheric distillation unit/Coker

FY 2000
4,890(Unit MWh/year)
FY 2003
5,309

Utilities

12,451

12,308

Shipping facilities /Water treatment facilities,
etc.
Total

5,252

5,175

22,593

22,792(6) Implementation status of recommendations made in the previous audit.
Implementation status of recommendations made in the audit of 3 years ago is described in
the attachment.
1) Reducing percentage of excess air in boilers (B and C)
Measures mentioned below were taken and targets were almost achieved.

BoilerB (Heavy fuel oil
combustion)
C (Gas combustion)

Target percentage ofexcess air
30%

Achieved
percentage
31.7%

20%

20.8%

In order to achieve targets, once-a-week measurement of oxygen level of flue gas, repair

Ⅴ-16

of air-leaking places, adjustment of air register of burners, adjustment of stack damper, etc.
were implemented.
2) Reducing percentage of excess air in heating furnace of atmospheric distillation unit
This heating furnace is a mixed combustion type using gas and heavy fuel oil. Although
its high-load running as recommended in the previous audit was not realized, with otherefforts, the percentage of excess air of 48% (measured on December 1, 2004) was
realized
In the previous audit, concluding that under the current low-load operation, it is
impossible to reduce excess air rate, a plan to reduce excess air rate during the operationby changing the operation plan (to high-load operation for a short period of time to get
longer plant shut down time) was recommended. However, actually, on the contrary, they
tried to retain the equipment in operation including a state of hot circulation so as tominimize the suspended operation period. Although various reasons for this measure are
given in Attachment (Ⅷ - 1.4 - (2), Document 3 – (g)), their real reason might be that as
the equipment is aging and maintenance is not sufficient, they want to minimize
opportunities of thermal shock accompanying the starting and shutdown of the operationof the equipment.
3) Direct feed of bottom oil of atmospheric distillation column (topped crude) to coker
Piping for direct feed is already laid down as the piping for emergency operation. The
problem is that if it is implemented immediately, the temperature balance in the current
heat exchange system changes and the temperature of CGO entering TW 503 (absorber)goes up, thereby aggravating the recovery of LPG fraction from Coker Off Gas (LPG
escapes to the home fuel gas system). This problem may be solved by rearrangement of
the heat exchange system or installation of additional heat exchanger. This remains to bestudied in the future.
4) Effective use of heat of HGO
They are in the process of further studying.
5) Maintenance and replacement of steam traps
They said that although they were doing but no as much as they wanted because of cost(budget).
3.4 Results of the Current Survey(1) General comment
Persons concerned of the refinery responded to us honestly and had already preparedanswers to our questionnaire. Our impression is that they apparently pour all their efforts
into continuation of the operation under such a serious condition as insufficient supply of
raw material and have no bandwidth to care about other points.
(2) Energy conservation efforts
Energy cost is generally maintained at a low level (probably for a policy reason) as the unit
price of electricity, for example, is set at 0 .5 Kyat/kWh. In this sense, the price structure is

Ⅴ-17

not designed for encouraging energy conservation. However, in this refinery, owing to theenergy audit given in the past, the awareness of the efficient use and conservation among
workers is apparently high. (While the exchange rate between Kyat and foreign currencies
is officially set at US$1 = 6 Kyat, the real rate is US$1= 900 to 930 Kyat.) For the energy
management, Energy Management Committee is convened once a week (Tuesday). The
general manager of the refinery hosts a meeting and about 20 Committee members
including from managerial class to process engineers attend the meeting. They discussvarious agenda items. This approach is very effective.
As the result of these efforts, they successfully reduced electric power consumption rate.
Although this unit electricity consumption is normally expressed in numerical value against
the “quantity processed by atmospheric distillation unit”, it is also meaningful to express itin numerical value against the total of ”quantities processed by atmospheric distillation unit
and coker” because coker consumes large quantities of fuel. Both numbers went down asshown in Figure Ⅴ-3-1.

60
50
40
TOPPER
30

TOPPER+COKER

20
100
FY2000 FY2001 FY2002 FY2003
Figure Ⅴ-3-1

Changes in Unit Electricity Consumption (Reprinted from Attachment)(Unit: kWh/KL - Quantity Processed)(3) Progress in recommendations made in the previous audit
The results of the follow-up survey on the previously proposed recommendations are as
mentioned above. Recommendations comparatively easy to implement such as
improvement of excess air rate of heating furnace are carried out, while suggestions
entailing more or less budgetary steps are not been advanced. (They say it is difficult evento find heat exchanger convertible from idle units.) As regards the suggestion that the
production schedule be reviewed so that the level of processing during the operation can be

Ⅴ-18

raised while the suspension period is extended, it seems to be unavoidable for them topostpone its implementation for the reasons such as ① the timing of obtaining raw
material is uncertain and ② they want to avoid changes in thermal history of theequipment as much as possible.
(4) Impression of the site
Our overall impression was that despite the generally old equipment and the poor budget
for maintenance, the refinery was well organized and in good housekeeping condition.
Concrete foundations in the plant had some cracks and cave-ins. (Although we are reported
that the condition of the ground is comparatively good.) Slogans for safety and energy
conservation were shown in Burmese.
Judging from our standards, thermal insulation of part of the piping is insufficient andleakage of steam is recognized in some places. However, they may not be able to improvethem due to the shortage of budget, even though they want to.
3.5 Barriers to Promotion of Energy Conservation and Countermeasures
In this oil refinery, as mentioned previously, the top management has developed a policy for
efficient use and conservation of energy and employees have the awareness and knowledgeof energy conservation, thus creating a certain level of results. However, due to the strong
budgetary constraints, not to mention the installation of additional heat exchangers, even the
repair or replacement of steam traps is difficult to do. Behind that, there are problems
regarding operation and profitability resulting from the lack of raw material.
Countermeasures to cope with these problems are not easy and technical or financial
assistance from the outside may be necessary.

Ⅴ-19

4.

Energy Audit on Thanlyin Oil Refinery
As a refinery other than Mann Thanbayakan refinery, Thanlyin refinery located in the suburb
of Yangon city was introduced. (There is one more refinery, Chauk Refinery, in Myanmar,
making a total of 3 across the country.)
The energy audit was conducted as described below.
Date of survey:
December 13 (Mon.) 2004, 9:00 – 12:30
Venue:
Thanlyin Refinery (Suburb of Yongon, about 30 minutes by carfrom Downtown), Auditorium of the main building of the refinery
Examiners:
Messrs. Hideyuki Tanaka and Fumio Ogawa
Technical experts, International Engineering Dept., ECCJ
Participants (party who accompanied): (Government, company and ACE)
U Tint Lwin: Head of Department (Planning), MPE
U Aung Kyi: Director, MICS, MOI No. (2) {Focal Point for
Myanmar}Mr. Christopher G. Zamora: Manager, ACE
Attendees on the part of MPE, Myanma Petrochemical Enterprise, Ministry of Energy
Mr. Khin Maung Shwe: General Manager, No.1 Refinery, Thanlyin
In addition, 5 top officials of the refinery were present
Unlike the case of Thanbayakan, in Thanlyin refinery, not much advance preparation had
been made. (There were no answers prepared for the questionnaire we had delivered inadvance.) We guess that we made a request to visit on too short notice.
In the refinery, the entire quantity of raw material in a form of condensate has been processedwith 2 units of atmospheric distillation since November 2002. This is a very abnormal
operation form. This refinery also is confronted with fundamental problems such as the oldequipment, varying quantities of processing along with fluctuating amounts of supply of raw
materials, lack of funds, etc. and they were apparently too busy to pay attention to energy
efficiency and conservation.
We had an impression that they also were making strenuous efforts under many constraint
conditions.
On the day of audit, we first explained the purpose of our visit and necessary data and then,were provided with an explanation on the general outline of the refinery before the inspection
tour of the site. Later when we were back to the main building, we made some remarks.
The audit is summarized below.

4.1 Outline of Thanlyin Refinery
The refinery is located in Thanlyin district across the bridge over the Bago River, a tributary
to the Yangon River, running east of Yangon. The premises of the refinery face the Bago
River in the west and the Yangon River in the south and stretch over 4km east to west.

Ⅴ-20

The history of the refinery is given below.
1925
1943-45
1945-47
1957
1963
1963
1980
1980
1986
1998
2001
2002

Established (As Burma Oil Co. , a UK company)
Processed crude oil delivered from Chaulk by pipeline
Used only as an oil depot for receiving and shipping oil products
Commissioning of CDU (Atmospheric distillation unit) - A (Capacity:
6,000BSD)
Commissioning of CDU-B (Constructed by Foster Wheeler, Capacity:
14,000BSD)
Taken over to be nationalized
Commissioning of CDU-C
Commissioning of private electric power generating facilities (Constructed by
MHI, Capacity:6MW)
Commissioning of delayed coker (Constructed by MHI, UOP process,Capacity: 5,200BSD)
Rebuilding of CDU-B (Cosmo Engineering, Tapis crude oil processing
12,000BSD)
Shut-down of CDU-A
Processing of condensate of Yetagun gas filed started from November (Crude
oil processing stopped)

Photo Ⅴ-4-1 Diagrammatic Illustration of the Thanlyin Refineryand People Involved

Ⅴ-21

(1) Product production status
The state of the raw material is explained below.
Material is of low specific gravity and mainly for naphtha fraction mixed with a small
fraction of heavy distillate.
At the point about 110 km off shore, crude oil is transshipped from 100,000DWT tanker to
6,500 DWT tanker to be carried.
Specific gravity 60/60°F
API Gravity
Sulfur content, weight %

0.75
57
0.005

According to the report on the past results (April 2003 - March 2004), raw material
processed was about 114 million IG/year and monthly average processing quantity was
about 43,460kl (9,100BCD). This amount was processed by two atmospheric distillation
units as follows:
CDU-B
CDU-C
Total

approx. 6,000BCD (50% Load)approx. 3,000BCD (50% Load)approx. 9,000BCD

Major products and quantities of production (share %) are as follows;
LPG (mixture of propane and butane)
Motor gasoline
68%
ATF (jet fuel)13%
HSD (diesel oil)12%
Solvent and lubricant (only mixture) also are produced.
(2) Equipment operation status
As mentioned above, CDU-B was remodelled for processing of crude oil from Tapis,
Malaysia. However, as the situation changed, it was switched to processing of condensate
alone. For that purpose, a circulation pipeline for residue was installed within each of the 2
CDUs (Residual oil flowing out from the bottom of the main distillation column is returnedto the point before entering the pre-flash column on the feed pipeline after the exit of theheat exchanger with raw material.) At the start of the operation of the unit, residue broughtin from the outside is fed to the equipment and made circulate to maintain. If the level gets
down, it is replenished. Enhancements of cooling capacity at the top of the distillation
column, etc. have not been implemented.
The secondary equipment (including coker) is out of service.
(3) Energy consumption status

Ⅴ-22

In this refinery, only off gas (called Natural Gas) is used for fuel. As electricity is generated
by privately-owned power generator, energy consumption does amount to consumption ofthis NG.
Consumptions of NG, steam and electricity are as follows;NG
SteamElectricity

1,600 million SCF/year
360,000 t/year
19 million kWh/year

4.2 Results of Analysis of the Current Situation
The current operation condition of the equipment is, as mentioned above, abnormal because
the equipment initially designed for processing of crude oil is used for processing ofcondensate, which is extremely different in property.
It is questionable how much technological study was made before the operation was shiftedto the current form. Even if they had determined on remodelling of the distillation units as
the result of their technological study, they could not have implemented it due to lack offund. It is our impression that keeping the operation of the equipment is all what they can
do now. Accordingly we suspect that they have no bandwidth to think about energy
efficiency and conservation.
To our request for data on energy consumption, they could not immediately present it. We
could not determine whether they had no established system of collecting, analyzing andmanaging data or our visit was on too short notice for their current situation.
After touring the site, we had an impression that with the generally old equipment, theirbudget could not afford sufficient maintenance. The condition of housekeeping looked alittle worse than that of Thanbayakan refinery. In this refinery, too, thermal insulation of thepiping, etc. was not enough in some points and leakage of steam was recognized here andthere.
4.3 Recommendations for Improvement and Expected Effects(1) Technological study of atmospheric distillation unit
It is desirable as a preliminary step toward discussions on energy efficiency andconservation to improve the operational condition of the equipment to as much sound a
status as possible. In this context, technological study on and some modifications toatmospheric distillation unit itself may be necessary. (For example, enhancing cooling
capacity of the upper part of the distillation column, ensuring appropriate pressure for
operation, etc.)(2) Possible energy conservation measures
We had an impression that not much energy conservation effort was made in this refinery,compared to Thanbayakan Refinery. For example, excess air rates of the heating furnace
were not analyzed.

Ⅴ-23

We gave advice that the analysis of excess air rates should first be attended using portable
Orsat apparatus.
We also explained repair and replacement of steam traps, thermal insulation of piping,
reviewing of performance of the equipment at low load operation, etc.
4.4 Improvements Completed
They installed circulation pipeline for residue in the still columns to enable the plant toprocess all amount of raw material in a form of condensate only. We give credit to them forthese voluntary efforts, although it is not an energy conservation measure.

Ⅴ-24

5.

Results of Seminar-Workshop
Seminar-Workshop was held on December 14 (Tue.). Minister of Energy of Myanmar
attended and made a speech, showing their great enthusiasm for this project.

5.1 Summary(1) Date
December 14 (Tue.), 2004 8:30 – 17:00(2) Place
Myanmar Ballroom, Traders Hotel Yangon, Yangon, Myanmar(3) Contents of presentations of Seminar-Workshop
Shown in Program of Attachment-1(4) Attendees:
Myanmar’ (host country)
H.E. Brig.Gen. Lun Thi：Minister, Ministry of Energy
U Aung Kyi: Director, Myanma Industries Construction Services, MOI II(Focal Point for Myanmar)
U Tin Oo:
Myanma Industries Construction Services, MOI II
Presenters from Myanmar
U Tun Myint: General Manager, Petrochemical Complex (Man Tan Payar
Kan), Myanma Petrochemical Enterprise (MPE)
Daw Hla Hla Kyi: Assistant Director, MPE (Kyawzwa Fertilizer Plant)
Presenters from other countries
Mr. Abdul Karim Abdul Bari: Project Manager, MIEEIP, Pusat Tenega
Malaysia
Mr. Subagyo, Supervisor: Rencana Dan Evaluasi Produksi, PT Kertas Leces
ASEAN
Dr. Weerawat Chantanakome: Executive Director, ACE
Mr. Christopher G. Zamora: Manager, Administration & Finance Dept. andManager for Renewable Energy & Energy Efficiency andConversion Programmes, ACE
Japan’
Messrs. Hideyuki Tanaka and Fumio Ogawa,Technical experts, International Engineering Dept., ECCJ
In addition, there was general-interest audience of Myanmar. The total number of attendees
was 54 including persons concerned given above.

Ⅴ-25

Photo Ⅴ-5-1 Minister of Energy Making an Address in Seminar-Workshop(5) Contents
1) Overall impression/contents
The session proceeded smoothly almost as scheduled.
The audience was attentive to presentations and there was sufficient time for questions
and answers. Seminar-Workshop was successfully concluded on the whole. The following
positive factors contributed to this result.
① We could have a discussion time with ACE and Myanmar on the previous day andcould prepare and distribute the updated agenda and handouts for
Seminar-Workshop. (Part of the material was copied and distributed on the day ofsession.) Accordingly, the audience could understand the overall structure of thesession and the content of each subject.
② Mr. Lun Thi, Minister of Energy of Myanmar, attended and addressed the meeting.
Strong enthusiasm on Myanmar’s part for this project was felt.
③ Seminar-Workshop was given in English and as no interpreter was necessary, thesession proceeded efficiently time wise.
Each presentation had enriched content and most participants listened to the end ardently.
Lastly, Mr. Zamora of ACE asked the pros and cons of “Promotion of the Technical
Directory Plan” and approval was enthusiastically expressed from the floor withapplause.

Ⅴ-262) Welcoming Remarks/Opening Statements
First, Minister of Energy of Myanmar delivered an opening address. Honorable Minister
mentioned the energy policy of the Myanmar government, the meaning of this project andthe nation’s expectations for this project. Mr. Tanaka, technical expert, on behalf of METI
and ECCJ, made an address of thanks to all people involved including the attendance ofHonorable Minister, and mentioned Japan’s contributions to this project, the meaning of
the theme of this project (necessity of cooperation from countries concerned), etc. Lastly,
Dr. Weerawat, Executive Director of Ace made a speech. His speech covered a wide
range of subjects from rapid increases in the price of crude oil to the meaning of the
PROMEEC project, the introduction of the ASEAN Energy Competition Award and theoutline of the program of that day.
3) Particulars of each presentationa. Situation of energy efficiency and conservation in Japan (Tanaka)
Mr. Tanaka explained the energy situation in Japan, the history of legal systems,
support and promotion measures of the Japanese government (low interest loan, tax
benefits, etc.) and efforts by the private sector.
b. Oil refining industry in Myanmar (U Tun Myint)
Mr. Tun Myint, General Manager of Mann Refinery that we visited on December 9,
made a report. We had already had an interview with him on this report at the time ofour visit and given advice.
c. Fertilizer manufacturing industry in Myanmar (Daw Hla Hla Kyi)
She made a report on the results of energy conservation regarding the ammonia- andurea- producing facilities in the Kyawzwa factory out of the 4 fertilizer manufacturing
factories. This factory was remodelled with NEDO’s FY 2000 aid budget. Energy
consumption of the ammonia-manufacturing facilities that include a hydrogen
manufacturing unit (Reformer) and the urea-manufacturing facilities were reduced byabout 20% through the implementation of 11 improvement measures and 6
improvement measures respectively.
d. Additional comments on case examples of oil refining industry in Myanmar (Ogawa)He made comments on Thanbayakan Oil Refinery, on which a presentation was madein this Seminar-Workshop, and Thanlyin Refinery that we visited on the 13th.
Thanbayakan Refinery is suffering absolute shortage of raw material and Thanlyin
Refinery is compelled to treat condensate from gas field, which is decisively different
from crude oil that the equipment was initially designed for. Their efforts to solve theirrespective problems were appreciated. The introduction of various energy conservation
measures practiced in Japan was omitted due to the lack of time.
e. Textile industry in Malaysia (Mr. Abdul Karim)
Although the presentation was basically of the same content as the report made in
Malaysia, the material had been slightly revised. They developed their own energy
conservation plans and made results exceeding energy conservation effects estimated

Ⅴ-27

from the implementation of our recommendations.
f. Paper and pulp industry in Indonesia (Mr. Subagyo)
They also achieved similar achievements as reported in the preceding presentation. As
the result of a short term plan, they succeeded in energy conservation by changing
boiler fuel from heavy fuel oil to gas. They have a long-term plan to further change it
to coal in the future.
g. Food product industry in Singapore (Ogawa)
Mr. Ogawa of ECCJ made a report, substituting the planned presenter from Singapore
who was absent.
h. Iron and Steal Industry in Philippine (Tanaka)
Mr. Tanaka of ECCJ made a report, substituting the planned presenter from Philippine
who was absent.
4) Workshop
a. Barriers and Measures (Ogawa)
Minor changes were made to the presentation material in Malaysia. As barriers
hampering energy conservation, 7 factors were listed and improvement measures forthe respective item were proposed. The PROMEEC project is one of effective measures
to remove these obstacles.
b. Technical Directory (Mr. Christopher Zamora)
He explained that the creation of technical directory would be a natural course ofdevelopment of the past PROMEEC activities (70 factories have already been subject
to an energy audit).
c. Database, Benchmarking and Guideline (Mr. Christopher Zamora)
He explained it by making several revisions to existing materials.
d. Questions and Answers
There was a sufficient time for active questions and answers. Topics of the discussions
included the background of the legislation of energy-related laws in JAPAN, energy
managers (heat/electricity), problems associated with coal combustion, promotion ofenergy conservation under the condition of poor fund, etc.
5) Closing Remarks
Lastly, Dr. Weerawat concluded the session touching upon skyrocketing crude oil prices,
the success of Seminar-Workshop of the day, the prospect of the ASEAN PROMEEC
activities in the future, etc.
5.2 Discussions on Results of Survey (Barriers to and Measures for Implementation
and Promotion of Energy Conservation Measures)
As mentioned above, the current Workshop could afford plenty of time for questions andanswers and there were lively discussions in the conference room. For example, there was arequest from Myanmar government circles; “We would like to be provided with detailed

Ⅴ-28

information on the background of the legislation of energy conservation-related laws inJapan that brought about great success.” There was also a question from Dr. Weerawat asfollows; “There are possibly two ways of implementing/promoting energy conservation
measures, government’s so-called top-to-bottom control by making laws, and grass-roots
activities aiming to gradually spread it among the general public until the time is mature,
which is better?”Concerns and problems of the countries that must strongly promote energy conservation in
the future were reflected in their questions and requests.
5.3 Discussions on Policy for Creation of Technical Directory for Oil Refining Industry
The meaning of, the policy for creation of and examples of Technical Directory wereexplained. Good understanding was gained from the floor. As mentioned previously,approval on the promotion of the program in the future was confirmed with the floor
through their enthusiastic clapping of hands.
5.4 Discussions on Policy for Developing Database/Benchmark/Guideline for Oil
Refining Industry
The response from the floor to this plan also was favorable. However, as the creation of
database and benchmarking involve the problem of protecting confidentiality, it should be
advanced with care.

Ⅴ-29

Ⅵ.

Activities and Efforts as ASEAN

1. Outline of Summary -Post Workshop
Summary Workshop and Post Workshop common to the 3 projects in ASEAN Countries;
Programs for Promotion of Energy Conservation in Major Industries and Buildings, and for
Improving Infrastructure for Energy Management, were held in Singapore.
In the Workshops, delegates of 10 ASEAN countries and representatives of ACE and ECCJ
gathered to evaluate the achievements and results of these 3 projects for the current fiscal
year and to confirm the direction of activities for the next and ensuing fiscal years. In theSummary-Post Workshop on each project, 2004 activity reports on the 3 projects regarding
Major Industries/Buildings/Energy Management were made from Japan’s part and allparticipants in the Workshop joined in evaluations of the activities and discussions on theachievements and issues (Photo Ⅵ-6-1).
1.1 Period
February 7 (Mon.) – 9 (Wed.), 2005
1.2 Venue
Allson Hotel, 101 Victoria Street, Singapore
1.3 ParticipantsContained in Attachment

Photo Ⅵ-6-1 Summary-Post Workshop Participants (February 7, 2005 at Singapore)Ⅵ-1

1.4 Outline of Activity Reports
The session proceeded according to Workshop Agenda (contained in Attachment), with Dr.
Prasert as MC.
(1) Summary on activities
In Phase-1, ACE-ECCJ conducted energy audits in major industries of 10 ASEAN
countries. In 2004, as the first year of Phase-2, we conducted follow-up surveys and energy
audits of newly selected factories with the purpose of surveying the penetration status of
guidance and suggestions made in energy audits of Phase-1 in major industries of the 4
countries listed below. Then, we gave Seminar-Workshop in the respective countries.
In the wrap-up Summary-Post Workshop, we made a summary report on our activities inthese 4 countries.
First year of Phase 2 - Countries and schedule for our visit
Vietnam
October 25 - 29, 2004
Lao PDR
November 15 - 19, 2004
Malaysia
November 22 - 26, 2004
MyanmarDecember 8 - 15, 2004
Our activities in the respective countries are shown in Table Ⅵ-6-1.

Table Ⅵ-6-1 Overview of Phase-2 Activities in 2004

Country
Time

Items

1. Follow-up of Energy Audit

2) EE&C Activities

2. S-W

1) EE&C Policy

Cement(Brunei)

Ceramics(Vietnam)VietnamLao PDR

Malaysia

MyanmarOct. 25〜29

Nov. 15〜19

Nov. 22〜26

Dec. 8〜14

Porcelain Factory

Hydropower Plant

Textile Factory

Lighting Fixture
Factory

Garment Factory

Vietnam-MOI

Lao PDR-MIH
ECCJ
ECCJ

Caustic Soda (Thailand)
Garment(Cambodia)

ECCJ

Food

(Singapore)

ECCJ

Iron/Steel(Philippines)

ECCJ
ECCJ

Oil Refinery (Myanmar)

ECCJ
MyanmarPower(Lao PDR)

Lao PDR-MIH

Lao PDR-MIH

Pulp/Paper(Indonesia)

Indonesia

ACE

Textile(Malaysia)

Malaysia

Malaysia

Other Presentations

Oil Refinery
Factory-1
Oil Refinery
Factory-2

PROMEEC in VN
Industry
EE&C in Paper
Factory
EE&C in Lighting
Fixture Factory

Ⅵ-2

Indonesia
Malaysia
EE&C in Glass
Factory
EE&C in Food
Factory

Indonesia
Malaysia
EE&C in Fertilizer
FactoryIn each Seminar-Workshop, reports on the energy conservation policy of the host country
and energy conservation efforts on the part of industries were made. There were guest
presenters from several other ASEAN countries who made reports on energy conservation
activities in major industries of their countries. For absent foreign presenters who hadplanned to make a presentation on the theme requested by the host county, ECCJ and ACE
made a report on their major industries on behalf of them. However, a report by ECCJ was
not an activity report and only reviewed the outline of the survey made in Phase-1 andrecommendations for energy efficiency and conservation. Reports from foreign countries
were on the following 3 industries; hydraulic power generation in Lao PDR, Pulp/Paper
industry in Indonesia and Textile industry in Malaysia. There was no request for reportingon the caustic soda industry in Thailand.
(2) Activities in Vietnam
In Vietnam, Seminar-Workshop was given on the first day of our visit. Then, a follow-up
survey on the ceramics factory having undergone an energy audit in January 2002 and an
energy audit of a lighting fixture manufacturing factory (mainly glass melting furnace
units) reported in the preceding Workshop were conducted. Despite insufficient
preparations for the Seminar-Workshop, including handouts, etc. due to its being scheduled
for the first day, there were more than 100 attendants, the largest number in the 4 countries.
Activities in Vietnam are described in Table Ⅵ-6-2.

Table Ⅵ-6-2 Activities in Vietnam

1. Schedule:
2. Seminar-Workshop:
Participants:

October 25 – 29, 2004
October 25 at Press Club, Hanoi
122 (MOI, etc.: 51, University: 6, Institute: 23,
Company: 32, Interpreters: 3, Foreigners: 7)

Presentations:1) Current Status and Activities on EE&C in Vietnam (MOI, VN)
2) EC Program in Japan (ECCJ)
3) Promoting EE&C in Industry of Vietnam (Hanoi University, VN)
4) Experience and Application of Energy Efficiency in:- Paper Factory (Vietnam)- Lighting Fixture Plant (Vietnam)- Pulp/Paper Factory (Indonesia)- Hydropower Plant (Lao PDR)
- Textile Factory (Malaysia)
5) Barriers/Measures (ECCJ)
3. Factory visits for follow-up energy audit
1) Hai Duong Porcelain Company (HAPOCO), (Oct. 26)
2) Rang Dong Light Source & Vacuum Flask Co., (Oct. 27)
4. Discussion of Technical Directory and D/B, B/M and G/L at MOI, (Oct. 28)

Ⅵ-3

In Seminar-Workshop, a governmental organization of Vietnam made a report on its energy
conservation initiatives and energy conservation efforts concerning the reduction of GHG
on the part of industries. This was followed by reports from a pulp/paper factory and alighting fixtures factory (possessing glass melting furnaces). There were also reports on thepulp/paper factory in Indonesia, the hydropower plant in Lao PDR and the Textile factoryin Malaysia that had undergone an energy audit by ECCJ in Phase 1 and it was clarified
that significant energy reduction effects were achieved. There was no reporting on theenergy conservation activities in the ceramics factory and there was no time for making areport on the results of our follow-up survey.
Barriers/Measures were reported by ECCJ.
As discussions of TD (Technical Directory), DB (Data Base), etc. were not held for lack oftime, they were separately conducted in MOI with the participation of ECCJ and PTM(Malaysia).
(3) Activities in Lao PDR
Activities in Lao PDR are described in Table Ⅵ-6-3
Table Ⅵ-6-3 Activities in Lao PDR

1. Schedule:
November 15 – 19, 2004
2. Factory visits for energy audit
1) Num Ngum Hydropower Plant (Follow up), (Nov. 15)
2) Textile 55 Co., (Nov. 16)
3. Seminar-Workshop: November 18 at Lane Xang Hotel, Vientiane
Participants:
48 (MIH, etc.: 7, University: 1,
Company & Hotel: 34, Foreigners: 6)
Presentations:
1) EE&C Programs of Lao PDR (MIH, Lao PDR)
2) EC Program in Japan (ECCJ)
3) Experience and Application of EE&C in:- Cement Factory (ECCJ for Brunei)- Textile Plant (Malaysia)- Garment Factories (ECCJ for Cambodia and Lao PDR)
- Pulp/Paper Factory (Indonesia)- Food Processing Factories (ECCJ for Singapore)- Num Ngum Hydropower Plant (Lao PDR and ECCJ)
4) Barriers/Measures, Technical Directory, D/B, B/M, G/L (ECCJ)In Laos, we conducted a follow-up survey of the hydropower plant on the first day and an
energy audit of a garment factory on the second day.
The hydropower plant, the subject of our follow-up survey, is located about 90km north ofVientiane. It underwent an ECCJ energy audit in January, 2002.
The garment factory we visited is located in the city of Vientiane. The results of oursurveys were reported in Seminar-Workshop.
In the Seminar-Workshop, 42 persons on Laos’s part were present.
From Laos, a governmental organization made a presentation on their energy conservation

Ⅵ-4

initiatives and a repot on energy efficiency and conservation activities of the hydropower
plant was made.
From ASEAN, ACE and ECCJ, reports on energy efficiency and conservation activities incement, textile, garment, pulp/paper, and food factories as well as the above-mentionedhydropower plant were made. These subjects were selected by Laos’s request andenthusiastic discussions were developed regarding each subject.
This Seminar-Workshop was televised.
(4) Activities in Malaysia
Activities in Malaysia are described in Table Ⅵ-6-4.
In Malaysia, a follow-up survey of the textile factory, on which ECCJ conducted an energy
audit in January, 2001, was made. As the location of the factory is about 250km
north-northwest far from Kuala Lumpur, capital of Malaysia, we visited only one factory
site.
Participants in Seminar-Workshop on the part of Malaysia were 84 persons.
In Seminar-Workshop, from Malaysia, reports on energy efficiency and conservation
efforts in a glass factory, a palm oil factory and a textile dyeing factory were made. FromASEAN, a report on a pulp/paper factory in Indonesia was made. ECCJ, on behalf ofVietnam and Philippines, made a report on energy conservation in ceramics and iron &steel factories.
Table Ⅵ-6-4 Activities in Malaysia

1 . S c h e d u le :N ovem ber 22 – 26, 2004

2 . F a c to ry v is its fo r e n e rg y a u d it1 ) A ra b M a la y s ia n D e v e lo p m e n t B h d (A M D B ) T e x tile P la n t, (N o v . 2 3 )3 . S e m in a r-W o rk s h o p :P a rtic ip a n ts :N o v e m b e r 2 5 a t M a rrio tt P u tra ja y a H o te l
9 0 (P T M , e tc .: 2 6 , C o m p a n y : 5 8 , F o re ig n e rs : 6 )P re s e n ta tio n s :1 ) E x p e rie n c e a n d A p p lic a tio n o f E n e rg y E ffic ie n c y in :- G la s s F a c to ry (M a la y s ia )- F o o d F a c to ry (M a la y s ia )- T e x tile P la n t (M a la y s ia a n d E C C J )- P u lp /P a p e r F a c to ry (In d o n e s ia )- C e ra m ic s (P o rc e la in ) F a c to ry (E C C J fo r V ie tn a m )- Iro n & S te e l F a c to rie s (E C C J fo r P h ilip p in e )2 ) B a rrie rs /M e a s u re s ,3 ) E C P ro g ra m in J a p a n a n d T e c h n ic a l D ire c to ry (E C C J )4 ) D /B , B /M , G /L (E C C J )(5) Activities in Myanmar
Activities in Myanmar are described in Table Ⅵ-6-5.
In Myanmar, energy audits of two oil refineries were conducted. The refinery for afollow-up survey was the one on which ECCJ carried out an energy audit in December
2001 and because of its location about 500 km north from Yangon, it took us the whole 2

Ⅵ-5

days to go and return from there.
Another oil refinery that was newly selected for an energy audit was located in the suburb
of Yangon.
The results of these surveys were reported in Seminar-Workshop.
In Seminar-Workshop, 45 persons were present from the part of Myanmar.
From Myanmar, reports on energy conservation activities in an oil refinery and a fertilizer
manufacturing factory were made. From ASEAN, reports on a pulp/paper manufacturing
factory in Indonesia and a textile plant in Malaysia were made. ECCJ, on behalf ofSingapore and Philippines, made a report on a food factory and iron and steel factories.
These presentations were reported in newspapers and on TV.
Table Ⅵ-6-5 Activities in Myanmar

1. Schedule:
December 8 – 15, 2004
2. Factory visits for energy audit
1) Mann Thanbayakan Oil Refinery (Follow up), (Dec. 9)2) Thanlyin Oil Refinery, (Dec. 13)
3. Seminar-Workshop: December 14 at Traders Hotel, Yangon
Participants:
51 (MOE, MOI, etc.: 37, Company : Union: 8
Foreigners: 6)
Presentations:1) EC Program in Japan (ECCJ)
2) Experience and Application of Energy Efficiency in:- Oil Refining Factory (Myanmar and ECCJ)- Fertilizer Factory (Myanmar)- Textile Plant (Malaysia)- Pulp/Paper Factory (Indonesia)- Food Processing Factory (ECCJ for Singapore)- Iron & Steel Factories (ECCJ for Philippine)3) Barriers/Measures (ECCJ)
4) Technical Directory and D/B, B/M, G/L (ACE)(6) Energy efficiency and conservation activities in ASEAN countries
1) Results of follow-up surveys of factories
Results of the improvement efforts made by factories after they underwent an energy
audit in Phase 1 are summarized in Table Ⅵ-6-6. Regarding 5 factories that include
factories of major industries in the 4 countries that we visited this fiscal year and apulp/paper factory in Indonesia reported several times, their achievement statuses ofrecommendations and guidance were checked based on the results of our follow-up
surveys and contents of their reports, and classified into three categories, “Finished”,“Under study” and “No activity”. The table shows the results in numbers.
As the table shows, for three fourth (3/4) of the total recommended plans combining thoseⅥ-6

in “Finishes” and “Under study”, approaches of some sort were taken and some of them
have already created results. We concluded that the remaining one fourth (1/4) of theplans would be implemented in near future. It can be said that generally active energy
conservation efforts have been made except in some facilities.

Table Ⅵ-6-6 Summary of EE&C Activities (Follow-up Energy Audit)

Country

Company
Name

Number of
Recommended
Items by ECCJ

VietnamHai Duong
Porcelain Company

Lao PDR

Malaysia

Finished

Under
Study

Nonactivity

11

2
18%

0

9
82%

Num Ngum
Hydropower Plant

4

3+ 1 No need
100%

0

0

Arab-Malaysia
Development Berhad:- Textile

9

4
44%

5
56%

0

MyanmarMann Thanbayakan
Oil Refinery

4

2
50%

0

Indonesia

PT KERTAS LECES:

34

0

6
18%

(By
- Pulp/Paper Industry
Presentation)

Other 2+ (1) items

2
50%
28
82%

Short & longterm plans

2) Result of energy audits of newly selected factories and activity status in reporting
factories
Energy efficiency and conservation activities developed by another (3) factories that wevisited in FY 2004 and 4 factories on which reports were made in Seminar are
summarized in Table Ⅵ-6-7.
According to presentations made in Seminar, all these factories have successfully reduced
their unit energy consumption. They apparently advanced their activities following thebasic flow from understanding of issues by energy audit to understanding of the current
level of their own factory, target setting based on such understanding and theimplementation of energy management. It shows that management and employees
worked together to make these results.
Among added factories for subjects of our energy audit, only Rang Dong Co. made apresentation in Seminar. Although there are still items yet to be improved, they madegood attainment of goals and created results. In the garment factory in Lao PDR, theshare of energy cost to the total cost was very low and thus, the motivation for promotionof energy conservation was not strong enough.
In the oil refinery in Myanmar, the stabilization of the plant operation was an issue ofgreat importance and here, too, it did not create impetus and motivation for promotion of

Ⅵ-7

energy conservation.

Table Ⅵ-6-7 EE&C Activities at 4 Countries on PROMEEC Phase 2 (2004)

EE&C Activities

Country

Company Name

Vietnam

By Internal energy audit and training,
Bai Bang
Coal reduction = 27,200t/y
Paper Company *1
Electricity reduction = 1,435MWh/y (0.7-1.0%)
By internal energy audit, EC Committee, EC target = -10%
Rang Dong Light
Source and Vacuum Fuel reduction: Oil = 561t/y (-12.6%),
Diesel oil = 64.3kL (-14.5%), LPG = 64.0t/y (-3.5%)
Flask Co.
- Glass Industry *2 Electricity = 312MWh/y (-3.5%)

Lao PDR

Textile 55 Co., Ltd.
- Garment Industry*2

No activities for EE&C
Energy cost =2.5-3.0% of total cost
Non-use air conditioning in factory

JG Containers (M)Sdn. Bhd- Glass Industry *1

Energy management team, Energy audit by PTM
Target: 5.0GJ/t-Glass melting
Energy cost = >20% of Turnover →13%
Energy intensity = 8.0GJ/t-Glass → 5.1GJ/t-GlassElectricity intensity = 1.4GJ/t-Glass → 0.87GJ/t-G

Cargill Palm
Products Sdn Bhd- Food Industry *1

Energy audit by PTM
EC target = 10% vs. 2000/2001
Results in 2002: Energy = -2.7%, Cost = - 13.3%

Malaysia

MPE
Equipment modification 2000, as model JI between MPE and- Fertilizer Industry
METI-NEDO Modified items: 17*1
Energy consumption = -20.9% (=26,300toe/y)Myanmar

MPE
Thanlyin
Oil Refinery

Countermeasures in equipment and operation- CDU (Crude Distillation Unit) modified to have residue
circulation lines*2- Operation adjusted for low load factor*1: Presentation only, *2: Energy audited by ECCJ Experts in 2004

(7) Summary of energy conservation activities
Table Ⅵ-6-8 shows a summary of FY 2004 PROMEEC activities in ASEAN countries.
Through our activities for this time, we had a strong impression that energy efficiency andconservation activities had recently been more and more actively developed in ASEAN
countries.
In order to advance energy conservation activities, the awareness and leadership on the partof top management of companies and the driving force that fits each factory are necessary.
If it is clearly understood that energy efficiency and conservation lead to cost reduction andcontribute to profits of companies and eventually to interests of society, these activities will
become even more invigorated.

Ⅵ-8

Table Ⅵ-6-8 Summary of METI-ASEAN PROMEEC Activities in 2004

PROMEEC Activities in ASEAN Countries:
Promotion of EE&C is becoming actively year by year atfactories in ASEAN countries, and many companies
challenging EE&C issues can get the profits!
1. Start of PROMEEC in Factories:
By the stimulus of- Government policy (New policy or revision)- Cost down
- EE&C training by outer organization, etc.
- Efficiency up, production increase- Exterior help
- Others, etc.
2. Effects of PROMEEC- Profit increase- Bringing up of EE&C awareness- Good Image as a Green company
The “Management’s supports and all in activities together”
are important to get the good results in EE&C.

1.5 2005 Action Plans
In FY 2005, METI-ASEAN PROMEEC activities will be continued in the same way as in
FY 2004 with ACE, ECCJ and FPs (Focal Point) of ASEAN countries as the main bodies.
In FY 2005, surveys and Seminar-Workshops will be given in Brunei and Indonesia in
August and Cambodia and Philippines in November. The detailed schedule is shown in
Figure Ⅵ-6-1.
The implementation period will be one week for each country. During the period, energy
follow-up surveys on 2 to 3 factories will be carried out and then Seminar-Workshop will begiven. In Seminar, reports on energy efficiency and conservation activities by the hostcountry, presentations from requested ASEAN countries, etc. are planned. In Workshop,
discussions on the creation and the current status of technical Directory (TD) and Database(DB)/Benchmark (BM) / Guideline (GL) are planned.
As a closing session, FY2005 Summary and Post Workshop will be held.

Ⅵ-9

Activities

Year
Month

4

5

6

7

2005
8

(1) Preparation: Detailed Plan /Arrangement for 1st Site Activity

9

10

11

12

1

2006
2

3

Brunei andIndonesia(2) 1st Site Activity(Follow-up Survey(1) / Workshop (1))
Analyses of 1st Site Activity(3) Results / Preparation for 2nd Site
Activity

Cambodia andPhilippines(4) 2nd Site Activity (Follow-up Survey(2) / Workshop (2))
Analyses of 2nd Site Activity(5) Results / Preparation for 3rd Site
Activity(6) 3rd Site Activity (Workshop (3))(7) Preparation of Report

Figure Ⅵ-6-1 Implementation Schedule, PROMEEC (Industry) for 2005 - 2006,

In Summary Workshop, the results of activities in the current fiscal year as reported herein
were highly evaluated and in Post Workshop, the direction of approaches to make in thenext year and basic contents of the plan were confirmed by all the staff and participants.
Eventually, a draft basic plan proposed by Japan was agreed upon by all delegates of therespective countries, Focal Points, (including ACE members) and consensus was achieved.

Ⅵ-10

2.

Discussions on Barriers and Countermeasures to Promotion of Energy
Conservation in Industries
Table Ⅵ -6-9 shows barriers actually constituting obstacles to promotion of energy
conservation activities in ASEAN counties and countermeasures against them.
While information collection, education, etc. are what they must continue to work on, it isimportant for the administration of each country to establish and enforce laws and for top
managements of factories to fully understand the necessity of energy efficiency andconservation and promote it.
Table Ⅵ-6-9 Barriers and Possible Measures
Possible Measures

Barriers
1) Policy2) HumanResources- Laws & Regulations- Awareness of Top Management- Commitment of Top Management- Top-level Decision- Education & Training- Seminar / Workshops- Study Tour- Technical Directory- Feasibility Studies and Economic Justification
4) Finance- Economic Instruments (Incentives, Subsidies, Soft Loans, etc.)- Availability of Funding Facility- Seminar / Workshops
5) Information- Technical Directory6) Inadequate Local - Seminar / Workshops- Capability Building
Manufacturing- Investment Promotion & Facilitation
Capability- Technical Directory3) Technology

7) Society &Culture- Education- Reward System- Awareness Campaign

This was explained in Workshop in the 4 countries subject to survey, though there was notenough time for thorough discussions on it.
In discussions held in Summary Workshop, most of the opinions presented were about theimportance of capacity building.
2.1 Education in Energy Conservation
The lack of the awareness of energy conservation was pointed out as the number one
problem. While concerns on the part of the government are important, so are interests byowners of companies, managers, engineers and general employees. Therefore, what shouldbe immediately done may be development of human resources and improvement of theawareness of energy conservation in the industrial sector, while legislation and low pricesof energy also are critical issues that must be addressed for promotion of energy
conservation.

Ⅵ-11

We proposed the use of the Training Center in Thailand as the facilities for energy
conservation capacity building.
2.2 Promotion of Energy Conservation
Most Asian companies are operated and managed by their owners in a top-down style.
Therefore, top management’s capacity building is particularly important. If the companies
clearly show employees their policies, corporate goals and incentives, energy conservation
activities in the companies will advance.
There are 3 types of energy conservation activities involving no cost, a small amount ofcost and a large amount of investment. As a first step, it is recommendable to set out
improvements that cost none and then study the next measure with the gains earned fromthe implementation of the first improvements. Most energy conservation measures involveno cost or a small amount of investment and still 10% to 15% energy reduction may bepossible.
2.3 Energy Conservation Dissemination Activities
ACE is involved in EE&C-SSN (Sub-section Network), RE (Renewable Energy)-SSN, EP(Energy Policy)-SSN activities. ACE is also doing coordination work for AEMAS and has a
lot of information. We believe that they should make a nice-looking pamphlet or something
to communicate the results of their activities.
How about issuing “PROMEEC News Letter” carrying reports on PROMEEC activities?
We expect much from activities by ACE.

Ⅵ-12

3.

Discussion on Creation of Technical Directory for Each Industry and Policy ofDissemination
In the first place, ECCJ presented 4 kinds of sample TDs. Although these samples were
presented and explained in Workshop given in each country to help participants’
understanding, in this Workshop, more specific TD examples based on the follow-up surveys
were presented. For example, they are the method of checking air ratio of burner of tunnelkiln in the ceramic industry, the method of repairing cavitations of turbine runner,countercurrent washing machine, the method of hydrogen membrane separation in oil
refining, etc.

3.1

Presentations on Technical Directory from 3 ASEAN countries
From 3 ASEAN countries, presentations on Technical Directory (TD) and Status & Plan of
Database (DB) were made as described below.

(1) Presentation by delegate of Malaysia
1) Introduction of TD on Adjustable Speed Drive (ASD)
2) Calculations of value in money of assumed energy conservation effects attained throughimplementation of recommendations made for “Cargill Palm Products Sdn. Bhd.” thatwere presented in Seminar-Workshop given in Malaysia, e.g. measures for leakage ofcompressed air and steam, thermal insulation and heat recovery, maintenance pitch ofsteam traps, etc.
(2) Presentation by delegate of Lao PDR
Explanation by “TD and Plan of Database Preparation in Lao PDR” was done, although
TD had not been prepared. Lao PRD’s Understanding of TD was explained. Lao PDR
needs advice and assistance from ASEAN and ECCJ.
(3) Presentation by Myanmar
Specific examples of energy conservation technologies employed in Mann Thanbayakan
Oil Refinery were demonstrated. They were not specific TD, however. Collection of thesereference case examples of actual activities may help creation of an effective TD.
3.2 Discussion on TD(1) Contents of TD
Consensus was achieved on the understanding that TD should contain all technicalinformation that is usable and useful in each ASEAN country concerned.
(2) Creation method of TD
Many opinions were presented and most were questions about what cases would be taken

Ⅵ-13

up in TD and who would be in charge of creation.
In response to this, the ASEAN part mentioned that ECCJ should take the leadership in thecreation, while ECCJ expressed its opinion that ASEAN countries should take the initiativein establishment of a system and ECCJ’s responsibility would be to support and give advice
to such activities of them. There was also a suggestion that outsourcing of the work andoffering some incentives be considered if companies and businesses in ASEAN declined to
get involved in the creation.
ECCJ suggested that TD be created based on examples of specific results in the past.
It was agreed that it would be necessary to establish a network and a system for creation of
TD so that sustainability of this activity could be maintained.
ACE indicated that ACE would have to get involved in creation of TD in some way.
Ultimately, the specific results of activities that have been made since 2000 will beincorporated into TD so that it can be utilized in implementation and dissemination ofenergy conservation.

Ⅵ-14

4.

Discussions on Development of Database/Benchmark/Guideline for Each Industry

4.1 Method of Database Construction in Industries(1) Characteristics of data collection in industries
Opinions presented are as follows;
While large-size companies have already established DB/BM/GL, medium-and small-size
companies have not yet developed a sufficient energy management system and most ofthem do not even have data. In the industrial sector, data collection itself is difficult and it
is costly. In addition, they don’t provide data easily for confidentiality reasons, etc. It is
impossible to obtain data enough to achieve objectives of this activity only by relying onenergy audits of factories under PROMEEC.
To seek cooperation from Associations in industrial circles may be one way.
(2) Construction of Database with the use of Internet
Out of ASEAN countries, in Singapore, Thailand and Malaysia, surveys and database
construction via Internet are advancing. In Thailand, collected data is compiled andprovided to User.
Proposals made are as follows;
Shouldn’t the utilization of this method be considered for construction of even moreenriched database in this project? Data will be collected via Internet from ASEAN
countries under this project so as to be compiled and distributed. Based on theunderstanding of the data construction program gained from each country, first of all, aneasy-to-see and enriched PROMEEC website will be opened within the homepage of ACE.
It should be made accessible with entry of password. How about enlisting cooperation fromthe above 3 counties where data collection is advanced in accumulating data?
We explained and gained full understanding of the basic stance that these will serve as
preliminary, important activities before eventually the specific results of activities that havebeen made since 2000 are incorporated into TD so as to be utilized in implementation anddissemination of energy conservation. We confirmed that we would continue to advance theplan by our original method of approach.

Ⅵ-15

Ⅶ.

Technical Directory CreatedPresentations titled “Technical Directory (TD)” were made by 3 ASEAN countries.
a. Presentation by delegate of Malaysia- Introduction of TD on Adjustable Speed Drive (ASD)- Energy conservation plans recommended for “Cargill Palm Products Sdn. Bhd.” thatwere presented in Seminar-Workshop given in Malaysia,
b. Presentation by delegate of Lao PDR- Explanation on understanding of TD on the part of Lao PDR by “TD and Plan of
Database Preparation in Lao PDR”. Lao PDR needs advice and assistance fromASEAN and ECCJ.
c. Presentation by Myanmar- Specific examples of energy conservation technologies employed in Mann
Thanbayakan Oil Refinery were demonstrated. They were not specific TD, however.
Collection of these reference case examples of actual activities may help creation ofan effective TD.
ECCJ showed the following 4 kinds of sample TDs.
- Method of checking air ratio of burner of tunnel kiln in the ceramic industry- Method of repairing cavitations of turbine runner- Countercurrent washing machine- Method of hydrogen membrane separation in oil refining
These samples are attached hereunder.

Ⅶ- 1

Ⅷ.

Reference Material

1.

Material for Seminar-Workshop in each country - Results of energy audits, ASEAN
achievement presentation materials
Results of energy audits reported in Seminar-Workshop given in each country and ASEAN
achievement presentation materials are listed below.
In addition, the Activity Schedule, Seminar-Workshop Program and Participant List in eachcountry are listed together.

1.1

Presentation materials of Vietnam(1) Activity Schedule in Vietnam, Seminar-Workshop Program and Participant List
(2) Current Status and Activities on Energy Conservation and Energy Efficiency in Vietnam(by Mr. Le Tuan Phong)(3) Promoting Energy Efficiency and Conservation in Industry of Vietnam (by Dr. PHAM
Hoang Luong)
Another two materials from Vietnam, “Energy reduction and energy conservation (by Ms.
Tham Luen, Bai Bang Paper Co., Ltd.)” and “Energy conservation activities in the lighting
fixture manufacturing factory (by Mr. Le Quoc Khanh, Rang Dong Light Source & Vacuum
Flask Co, Ltd.)” were written in Vietnamese, so no attached here.
1.2

Presentations materials of Lao PDR(1) Activity Schedule in Lao PDR, Seminar-Workshop Program and Participant List
(2) Energy Efficiency and Conservation in Lao PDR (by Mr. Khamso Kouphokham)(3) NAM NGUM 1 HYDRO POWER PLANT (by Mr. Vanthong Khamloonvilayvong)
1.3

Presentation materials of Malaysia(1) Activity Schedule in Malaysia, Seminar-Workshop Program and Participant List
(2) Experience and Application of EE&C in JG Containers (M) Sdn. Bhd - Glass Industry (byMr. Ashok Rao)
(3) Experience and Application of EE&C in Cargill Palm Products Sdn. Bhd. - Food Industry (by Mr. Hishamudin Iblahim)

Ⅷ-1

(4) Experience and Application of EE&C in Arab Malaysia Development Berhad Textile Plant(by Mr. Phubalan Karunakaran)
1.4

Presentation material of Myanmar(1) Activity Schedule in Myanmar, Seminar-Workshop Program and Participant List
(2) Experiences and Application of Energy Conservation in Mann Thanbayakan Oil Refinery(by U Tun Myint)
Myanmar’s presentations included also an EE&C activity report on a fertilizer plant, butmaterial was not obtained.
1.5

Presentation materials of Indonesia(1) Experience and Application of EE&C in PT KERTAS LECES (by Mr. Djoko Wiryono &Subagyo)(2) Technical Report of Experience and Application of EE&C in PT KERTAS LECES (by Mr.
Djoko Wiryono & Subagyo)
1.6

Presentation materials of Japan(1) Energy conservation activities in Japan
1) Energy Conservation Program in Japan
2) Barriers and Measures on Implementing EE&C in Industry(2) Follow-up energy audit
1) Energy Conservation Promotion, Ceramics (Vietnam)2) NAM NGUM I HYDRO POWER PLANT (Lao PDR)
3) AMDB, Textile Industry (Malaysia)
4) Energy Audit Findings at Oil Refinery (Myanmar)(3) Energy Conservation Promotion of Phase 1 presented by ECCJ
1) Cement (Brunei)
2) Food Processing (Singapore)3) Garment (Cambodia)
4) Iron/Steel (Philippines)

Ⅷ-2

(4) Materials of Seminar-Workshop in each country - regarding TD, DB, BM, GL
1) Development of Technical Directory2) Development of Local Database/Benchmark/Guideline2.

Summary-Post Workshop Material(1) Summary/Post-Workshop Program and Participant List
(2) Summary of Local Seminar-Workshops and Follow-up Surveys in Major Industries(3) Major Industry, Proposed Plan in 2005-2006

Ⅷ-

3

Any individual or organization who makes part or all of this reportpublic must obtain prior permission from International Engineering
Department of Energy Conservation Center Japan.
Phone

03-5543-3018

Fax

03-5543-3022