BANDAR SERI BEGAWAN – The government has vowed to increase power supply capacity and improve response measures after thousands of households and businesses experienced a major blackout last October.
In his budget readout at the Legislative Council (LegCo) on Thursday, Minister at the Prime Minister’s Office Pehin Dato Hj Halbi Hj Mohd Yussof said the Department of Electrical Services (DES) is working to ensure electricity supply through alternative sources, including the use of mobile generators in the event of a power cut.
He said there are plans to expand Bukit Panggal Power Station’s capacity in the second phase of its operations in 2027, but did not give further details. Completed in 2006, the power plant in Tutong can currently generate 116 MW of electricity – enough to supply at least 100,000 homes.
Priority would also be given to preventive and corrective maintenance of the power generation system, transmission and distribution power lines and street lights, the minister said.
Brunei was hit with one of its worst power outages last October, affecting public services and businesses. Some households only had their power restored 15 hours after the disruption.
DES had attributed a faulty 66kV transmission line as the cause of the blackout in Brunei-Muara, Tutong and Belait.
Questioning the minister on measures taken to manage the power failure, LegCo member Hjh Rosmawatty Hj Abdul Mumin said the blackout had a significant impact on people’s lives, including water supply disruptions, economic losses and patients who use oxygen therapy at home had to be taken to hospital.
In response, the minister said DES had activated its business continuity plan following the power outage, which includes deploying mobile generators, crisis management team and standard operating procedures to ensure the power cut had a “controlled impact”.
However, Pehin Dato Hj Halbi acknowledged that there were “gaps” in the business continuity plan and action had been taken to ensure the plan is more integrated with other government agencies.
He added that DES has proposed long-term plans such as upgrading infrastructure to improve power supply.
“With these response plans, the impact of disruptions to the daily activities of the public can be controlled, especially critical services, while increasing the public’s trust in the quality of services,” he said.
Salman offshore field starts producing oil
Meanwhile, the minister said the Salman oil field – which was first discovered in 2011 – had begun producing oil in 2023. The production capacity of the offshore oil field was not disclosed.
Sitting between Brunei Shell Petroleum’s (BSP) Iron Duke and Champion oil fields, Salman had faced operational delays due to the COVID-19 pandemic and BSP was reported to have taken legal action against two contractors for alleged breach of contract in the Salman development project.
Pehin Dato Hj Halbi said the Department of Energy and Petroleum Authority of Brunei Darussalam will continue to prioritize integration in ensuring optimal oil and gas operations and increasing production prospects.
He said an upstream growth steering committee has been established to speed up the implementation of projects.
The upstream oil and gas industry has been facing declining production over the past few years, despite the government promising to ramp up oil and gas output to 350,000 barrels a day.
The oil and gas sector posted a 2% negative growth in 2023 due to dwindling production, figures from the Department of Economic Planning and Statistics showed.
New 12 MW solar farm in the pipeline
TotalEnergies Brunei will develop a 12 MW solar power plant that is expected to start operations in early 2025, Pehin Dato Hj Halbi said without elaborating on the cost and location of the solar farm.
The 30 MW solar power plant in Kampung Belimbing will also begin operations next year, the minister said.
He added that the government will push the use of small- and medium-scale solar systems by ensuring alternative energy technologies are affordable.
However, the minister noted that supply and installation costs of solar systems are influenced by market factors.
Brunei had set a target of generating 100 MW of solar energy by 2025 as part of its initiative to slash greenhouse gas emissions by 20 percent over the next 10 years. The energy sector contributes 80% of the country’s carbon emissions.
Pehin Dato Hj Halbi said an energy security and efficiency steering committee was also established to accelerate renewable energy projects.
The sultanate currently has two solar power plants – Tenaga Suria Brunei’s 1.2 MW plant and BSP’s 3.3 MW solar park in Seria, which can power about 600 homes.
In 2021, the government said all four districts would operate solar power plants within five years, including two sites at Tutong’s Bukit Panggal and Temburong’s Belingus.
Moreover, nine potential sites were identified to build floating solar farms.
New LPG bottling plant on Pulau Muara Besar
The minister further announced that a new liquefied petroleum gas (LPG) bottling plant will be built on Pulau Muara Besar in 2026.
He said the plant is a long-term plan that will increase capacity and promote efficiency in handling and storing LPG. The cost of the bottling plant was not disclosed.
Thousands of households and restaurants use LPG for cooking, with Brunei Shell Marketing the sole supplier of bottled LPG in the country.
Pehin Dato Hj Halbi said the minimum national LPG stock will be increased from 7 to 14 days this year to ensure supply is higher than the current demand.
“The short-term LPG supply contingency plan is also strengthened through the bulk import of LPG that will be further processed for bottling at the LPG plant in Lumut,” he added.
PMO faces 1.1% budget cut
The Prime Minister’s Office has allocated $566.32 million for the 2024/25 financial year, a 1.1% decrease from the previous year.
A total of $321.28 million will be spent on emoluments and the remaining $245.03 has been set aside for recurring expenses.
Without giving a breakdown of PMO’s proposed spending, the minister said the budget will focus on three areas — improving public welfare and productivity, promoting economic diversification and sustainable development, as well as developing human capital.
He added that the budgets of five departments — the Narcotics Control Bureau, Anti-Corruption Bureau, Internal Security Department, Royal Brunei Police Force and Brunei Research Department – would not be disclosed due to the “sensitive” nature of their operations.