APEC Energy Trade and
Download
1 / 14

APEC Energy Trade and Investment Roundtable Cairns, Australia 1 October 2008 - PowerPoint PPT Presentation


  • 132 Views
  • Uploaded on

APEC Energy Trade and Investment Roundtable Cairns, Australia 1 October 2008. Robert Pritchard APEC Gas Forum. Basic Truths: Energy in APEC. Economic activity underpinned by energy Geographic disparity in energy supply and demand

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'APEC Energy Trade and Investment Roundtable Cairns, Australia 1 October 2008' - ethel


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Apec energy trade and investment roundtable cairns australia 1 october 2008

APEC Energy Trade and

Investment Roundtable

Cairns, Australia

1 October 2008

Robert Pritchard

APEC Gas Forum


Basic truths energy in apec
Basic Truths: Energy in APEC

  • Economic activity underpinned by energy

  • Geographic disparity in energy supply and demand

  • Increasing reliance of APEC economies on cross-border energy trade


Why was apgas established
Why Was APGAS Established?

  • APEC Energy Ministers wished to accelerate cross-border natural gas trade

  • A response to energy security concerns

  • APGAS to create “a competitive, open and transparent marketplace for natural gas, particularly LNG, in the region”

  • APGAS applauds APEC for its ongoing commitment to open trade and investment


Dramatic change in lng supply demand balance
Dramatic Change in LNG Supply/Demand Balance

  • Demand has outstripped supply

  • Asia-Pacific and Atlantic Basin markets have started to converge over last 2 years

  • This has been commercially driven

  • The change is shown by next 2 slides


Apec energy trade and investment roundtable cairns australia 1 october 2008

Asia-Pacific LNG Trade 2005 (bcmpa)

EXPORTS

IMPORTS

Total trade: 122 bcmpa (89 mtpa)


Apec energy trade and investment roundtable cairns australia 1 october 2008

Asia-Pacific LNG Trade 2007 (bcmpa)

EXPORTS

IMPORTS

Total trade: 148 bcmpa (108 mtpa)

new entrant *


Dramatic change in the climate outlook
Dramatic Change in the Climate Outlook

  • With an increasingly carbon-constrained global economy, climate change is now as important as energy security on the APEC policy agenda

  • LNG is the cleanest of all fossil fuels

  • Importance of accelerating cross-border natural gas trade continues to mount as every day passes


Unfccc thinking september 2008
UNFCCC Thinking September 2008

  • Energy sector is responsible for largest share of global emissions

  • Energy infrastructure requires a total investment of $22 trillion to 2030

  • This should be invested in low-emissions technologies

  • Otherwise, emissions go up 50% (instead of down 50%)


Advantage of switching to lng
Advantage of Switching to LNG

Kg/MWh global emissions showing emissions of exporting economy at foot of columns

(Australian case)

Every tonne of

emissions from

LNG production avoids

more than 4 tonnes

globally

Fuel Source

Australian Emissions Global Emissions


Current gas industry concerns
Current Gas Industry Concerns

  • Key concern of customers: reliable supply at competitive price

  • Key concerns of developers: overheated construction market, escalating costs, difficulties with project approvals and uncertainty about the cost of carbon

  • Public trust in LNG must be maintained


Investment not trade barriers
Investment, Not Trade Barriers!

  • Barriers to natural gas trade?

  • Not really – they are more barriers to investment in new LNG capacity

  • Even then, they are not so much barriers as they are risks that discourage investors


Good policy settings essential
Good Policy Settings Essential

  • To encourage investment, good policy settings are essential

  • There must be certainty of application

  • This means the entire spectrum of policies that impact on investment stability: fiscal terms to environmental requirements


Climate policy
Climate Policy

  • Uncertainty is actually increasing

  • Dampening effect on investment

  • Risk that international climate regime will infringe on international trade regime

  • A sector-specific approach to reduction of emissions in LNG sector merits attention in international climate negotiations


Conclusions
Conclusions

  • Intersection of the international climate and trade regimes requires examination for its effect on APEC energy trade

  • Greater domestic use of natural gas, and increased cross-border natural gas trade, will benefit the global climate

  • Any domestic policy that inhibits natural gas investment is bad climate policy and bad for energy security