ASEAN targets biofuels, efficiency, as energy fix

VIENTIANE, July 27 (Reuters) - Southeast Asian nations pledged to meet growing energy demand and cut painful oil imports by boosting renewables and energy efficiency, but stopped short of setting regional targets on Thursday.

Energy ministers from the Association of South East Asian Nations (ASEAN) touted biofuels as a key way of dealing with record oil prices, though industry officials meeting in Laos talked more of domestic oil exploration and coal for power.

''High oil prices are clear risks to sustained economic growth of the ASEAN region,'' ministers said in a communique after the annual meeting.

''Improvements in energy efficiency and increases in the contribution from renewable energies to supplies are both important for achieving a sustainable energy future.'' The ministers called for continued investment in energy production and infrastructure, support and increased research to expand renewables, as well as measures to prepare better for emergencies and capacity to cope with supply disruptions.

South Korea said on Wednesday it would propose joint oil stockpiling with the ASEAN region, as it was due to meet ASEAN energy ministers on Thursday, together with Japan and China.

The region's top oil consumer, China, told a conference in the Laotian capital that oil prices were too high to start filling its strategic reserve.

It also said it would gradually raise power tariffs and retail fuel prices towards international levels.

Subsidised prices help prop up demand by keeping fuel cheap for consumers, but there was no mention of further price rises among southeast Asian countries. Malaysia and Indonesia have both said they will not raise prices again this year.

The ASEAN ministers said energy security was the shared responsibility of producers and consumers, matching recent comments from the Organization of the Petroleum Exporting Countries.

Producer cartel OPEC has called for a demand road map from consumers and better data on demand forecasts to help plan investment in extra supply capacity.

Indonesia said it had a target for 10 percent biofuels by 2009, while Thailand aims to displace 230,000 barrels per day or about a quarter of its of oil consumption by 2020 using ethanol in cars and by switching vehicles to run on gas.

Environmental campaign group Greenpeace said it welcomed the ministers' statement on renewables other than hydropower, but hoped it was not merely rhetoric since southeast Asia had some of the largest renewable energy potential in the world.

REUTERS DKS ND2112