SPONSORS

SPONSORS

Case Study of Trans-ASEAN Gas Pipeline

CASE STUDY

The Complexities of Programme Management: Case Study of Trans-ASEAN Gas Pipeline

Anton Setiawan, Alya Shahroom, Ting Huang, Noor Syaza Zahidah

Heriot-Watt University, Edinburgh, United Kingdom

 


ABSTRACT  

By the end of 2015, member countries of the Association of Southeast Asian Nations (ASEAN) entered into regional economic integration called ASEAN Economic Community (AEC). One of the most important aspects of this integration is to secure energy supply in the region to achieve competitive economic region. Trans-ASEAN Gas Pipeline (TAGP) is an energy programme that focus on the optimisation of the region’s energy security. As a programme, however, TAGP is exposed to many challenges. This paper analyse the complexities of TAGP from six different perspectives, including technical, environmental, financial, taxation, jurisdictional and organisation. The organisational complexity is analyse using the “two-way” system approach. Our analysis concludes that TAGP is a capital intensive programme that requires extensive resources, including expertise in the technical and environmental fields. Due to its nature as a cross-border energy programme, TAGP also possess a high exposure in the taxation and jurisdictional aspects. Further, our analysis found that political interest adds complexities in the programme management. Programme management office (PMO) could increase the effectiveness of the programme, particularly in a cross-border programme where the volatility of economic and political condition is hard to predict.

KEYWORDS: Complexities, Programme Management, Trans-ASEAN Gas Pipeline

INTRODUCTION

As an organisation, The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967 in Bangkok, Thailand. The organisation has ten member countries, including the Philippines, Indonesia, Malaysia, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar, and Cambodia. According to ASEAN Declaration, ASEAN has seven aims and purposes which mainly focus on the cooperation within member countries in the aspects of economic growth, social progress, cultural development, regional security, education, and cooperation with the international and regional organisations.

In November 2007, the ASEAN Leaders agreed to enter into regional economic integration called ASEAN Economic Community (AEC) by the end of 2015. The AEC blueprint was created by identifying the characteristics and elements of the AEC. Four main elements of the AEC are single market and production base, competitive economic region, equitable economic development, and integration into the global economy. In regards to this, energy cooperation programme is highly important to achieve these objectives, particularly related to the establishment of the competitive economic region.

As a region with more than 600 million people, the demand of electricity and energy is extremely high. However, from the supply side, this is not the case. In the Southeast Asia region, the statistic from Asian Development Bank shows that 219 million people have lacked access to electricity and another 100 million people have only intermittent access to electricity and basic energy services (Sovacool, 2009). To cope with this situation, ASEAN decided to construct a Trans-ASEAN Gas Pipeline (TAGP) network, which will optimise the distribution of natural gas among ASEAN member countries.

Using TAGP as a case study, this paper analysing the complexities of energy programme management. The importance of programme management, including the tools and technique is examined. The literature review of the complexities in the programme management from different perspective also discussed. Further, the importance of programme management in the ASEAN energy programme is analysed from the perspective of complexities. Together with ASEAN Power Grid, TAGP is one of the most important energy programmes in the ASEAN. This paper is focused on analysis of the complexities of the TAGP as a programme. The complexities are discussed from six different aspects including technical, environmental, financial, taxation, jurisdictional, and organisational. An organisational complexity is analysed from the perspective of “two-party” programme system.

Our analysis concludes that TAGP is a capital intensive programme that requires expensive resources, including expertise in the technical and environmental fields. Due to its nature as a cross-border energy programme, TAGP also possesses a high exposure in the taxation and jurisdictional aspects. Our analysis found that the political intention adds complexities in the programme management, particularly in the environment with high volatility in the economic and political situation.

More…

To read entire paper (click here)

 


 

About the Authors

pmwj46-May2016-Setiawan-PHOTO1
Anton Setiawan

Heriot-Watt University, UK
Politecnico di Milano, Italy
Umeå University, Sweden

Indonesia - small flag




Anton Setiawan
is currently pursuing his Erasmus Joint-Master’s degree in Strategic Project Management European at Heriot-Watt University (UK), Politecnico di Milano (Italy), and Umeå University (Sweden). Anton holds a Bachelor’s of Economic in Accountancy. During four years of professional experience, Anton has held titles such as Junior Financial Auditor, Senior Financial Auditor and Senior Corporate Finance. Major Field of Study: Strategy and Project Management; Research Interests: project finance, urban development, sustainability. Anton may be contacted at [email protected]

 

pmwj46-May2016-Setiawan-PHOTO ALYA
Alya Shahroom

University Technology MARA, Malaysia
Heriot-Watt University, UK

flag-malaysia




Alya Shahroom
is currently studying towards her Master in Energy at Heriot Watt University. She completed her Bachelor’s Degree in Electrical Power and Renewable Energy Engineering in June 2015. She did her industrial training at Movendi s.r.l, Italy and one of her responsibilities was to carry on a study concerning the utilization of palm oil waste as the energy source of a co-generator. Major Field of Study: Electrical Engineering; Research Interests: Environmental, Energy. Alya may be contacted at [email protected]

 

pmwj46-May2016-Setiawan-PHOTO TING
Ting Huang

Heriot-Watt University, UK
Politecnico di Milano, Italy
Universidad Politecnica de Madrid, Spain
Hong Kong University of Science and Technology, Hong Kong

flag-china




Ting Huang
is currently pursuing his Erasmus International Master’s degree in Industrial Management at Heriot-Watt University (UK), Politecnico di Milano (Italy), and Universidad Politecnica de Madrid (Spain). Ting holds a Bachelor’s of Chemistry and a Master’s of Chemical and Biomolecular Engineering. Ting was also Certified in Production and Inventory Management (CPIM) by APICS during her study. Major Field of Study: Supply Chain Management; Research Interests: supply chain, just in time. Ting may be contacted at [email protected]

 

pmwj46-May2016-Setiawan-PHOTO NOOR
Noor Syaza Zahidah Noor Hassan

Heriot-Watt University, UK
Politecnico di Milano, Italy
Universidad Politecnica de Madrid, Spain
Universiti Kuala Lumpur Maaysian Institute of Aviation Technology, Malaysia

flag-malaysia




Noor Syaza Zahidah Noor Hassan
is currently pursuing her Erasmus International Master’s degree in Industrial Management at Heriot-Watt University (UK), Politecnico di Milano (Italy), and Universidad Politecnica de Madrid (Spain). Syaza holds a Bachelor’s degree in Aircraft Engineering Technology (Hons) Mechanical and a Diploma of Engineering Technology in Helicopter Maintenance. She did her thesis at Universiti Kuala Lumpur, Malaysian Institute in Aviation Technology on sustainability of biojet fuel in aviation. Major Field of Study: Supply Chain Management; Research Interests: Sustainability of biojet fuel in aviation. Syaza may be contacted at [email protected]