Market at potential crossroads – China could be another game changer after US boom
DAEGU, South Korea – The global LNG market could be facing even more disruption with a combination of the American shale gas revolution, a disparity in shale gas prices in North America, Europe and Asia, and the potential game-changing impact of China’s shale gas development, the World Energy Congress heard today.
Energy leaders from the US, Australia, Indonesia and Japan discussed the new dynamics of Asian LNG markets in a panel session moderated by Dr. Tatiana Mitrova, head of the oil and gas department at the Energy Research Institute of the Russian Academy of Sciences.
Expert speakers included:
· Yenni Andayani, Senior Vice President of Gas & Power, Pertamina, Indonesia
· Peter Coleman, CEO & Managing Director of Woodside Energy, Australia
· Richard Guerrant, Global Vice President of LMNG, ExxonMobil, USA
· Jay Khosia, Assistant Deputy Minister of Natural Resources, Canada
· Shigeru Muraki, Executive Vice President, Tokyo Gas, Japan
· Don Wallette, Executive Vice President, ConocoPhillips, USA
The panel noted that LNG imports by Asian countries account for 60 percent of the global LNG trade and essentially drive the global market. Dr. Mitrova said: “In the last couple of years there were some shifts on the demand side. First of all, the Fukushima catastrophe has pushed up energy demand in Japan, at the same time there have been environmental concerns and demand growth in China and Southeast Asia.”
The US potentially has a 100-year supply of natural gas, transforming the nation from a demand centre to a supplier, said Mr. Wallette. As demand for LNG increases in Asia, North America is becoming another source for the Asian LNG market. Countries such as China, which has estimated shale reserves in the league of 1115 trillion cubic feet (tcf), are looking for ways to mimic that success.
The discussion explored whether current events constitute a “revolution” or are simply a part of the market’s natural “evolution,” and whether industry actors would focus on short-term projects or long-term planning.
About the World Energy Council (WEC)
Founded in 1923, the World Energy Council is the only truly global and inclusive forum for thought-leadership and tangible engagement committed to our sustainable energy future. Our network of 93 national committees represents over 3,000 member organizations including governments, industry and expert institutions. Our mission is to promote the sustainable supply and use of energy for the greatest benefit of all. The World Energy Congress is the world’s premier energy gathering.
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About the World Energy Congress
The triennial World Energy Congress is the flagship event of the World Energy Council. It has gained recognition since the first event in 1924 as the premier global forum for leaders and thinkers to debate solutions to energy issues. In addition to the discussions, the event provides an opportunity for executives to display their technologies and explore business opportunities. With the upcoming Congress in Daegu the event will have been held in 20 major cities around the world since its founding.
Further details at www.daegu2013.kr and @WECongress