The featured speakers at the ASEAN-EIA Gas Dialogue (L-R): Hari Karyuliarto, Loreta G. Ayson, Maria van der Hoeven, Chee Hong Tat, and Denis Bonhomme.
Mr Chee Hong Tat, Chief Executive of the Singapore Energy Market Authority, speaking at the ASEAN-IEA Gas Dialogue at SIEW 2014.
By John Chong
The planned Trans-ASEAN Gas Pipeline project will strengthen regional energy cooperation but only if member countries have the “political will and commitment to allow the gas markets to work efficiently”, Maria van der Hoeven, executive director of the International Energy Agency (IEA), said at Singapore International Energy Week 2014 on Tuesday.
Many economic, technical and policy challenges must be overcome before members of the Association of Southeast Asian Nations can turn the vision for the regional pipeline into reality, said van der Hoeven, the moderator of a panel discussing the topic Changing Gas Markets in ASEAN.
Chee Hong Tat, chief executive of Singapore’s Energy Market Authority, said he was bullish about the rising importance of natural gas in ASEAN, highlighting that demand in the region is “anticipated to increase by 80 percent by 2035 according to the IEA”.
A well-coordinated and connected gas market offers a wide range of economic benefits to ASEAN but there are hurdles to clear over the pipeline project, Chee said. Subsidies, which distort market fundamentals, should be better managed to send the appropriate price signals to encourage investment, he added.
Chee’s views were echoed by Denis Bonhomme, senior vice president of business development in Asia at GDF Suez, who said governments should “leave the market alone and let it all base on market prices and demand”.
Southeast Asia has strong demand for gas and “governments and the private sector have started working together”, Bonhomme said, adding that the Trans-ASEAN Gas Pipeline and new gas sources would bring “diversification and flexibility” to the region.
At a meeting in Laos in September, ASEAN energy ministers called for collaboration among member states to promote regional energy security and sustainable development, along with stronger engagement with the private sector.
About Singapore International Energy Week (www.siew.gov.sg)
The 7th annual SIEW 2014 is the foremost platform for top policymakers, energy practitioners and commentators to discuss energy issues, strategies and solutions. SIEW brings together a robust line-up of world's leading conferences, exhibitions, roundtables and networking events to provide insights and perspectives on the emerging trends and innovations across the energy spectrum of oil & gas, clean and renewable energy, and energy infrastructure financing – in one week, one location. Please visit www.siew.gov.sg for further information.