Panellists at the lunch plenary of the Singapore Energy Summit
By Li Zhenhui
With the completion of liquefied natural gas (LNG) exporting facilities in the United States and Australia by the end of decade, buyers will have more choices for short-term cargoes, Charif Souki, chairman and chief executive officer of Cheniere Energy, said on Monday during the Singapore Energy Summit at Singapore International Energy Week 2015.
But the current LNG pricing mechanism in Asia, which is indexed to oil, may impede LNG infrastructure development in the long term due to the fall in oil prices, he said.
“Indexation to oil prices does not seem to suit the producers or consumers,” Souki said. “It is absolutely essential that carbon pricing is put in place if you [LNG producers] want to survive on a long-term basis.”
Asked whether the development of gas will be disrupted by the growth of micro-grids that are usually based on renewables, Peter Coleman, managing director and chief executive officer of Woodside Energy, said he saw the two energy sources as complementary.
Gas-fired plants could compensate for the intermittency of micro-grids as they can be turned on and off easily compared with other generation sources, Coleman said.
Micro-grids are more suitable for household consumers than energy-intensive industrial consumers who prefer more stable generation than renewables, he added.
About Singapore International Energy Week (SIEW)
In its 8th edition, Singapore International Energy Week is the premier platform in Asia for energy insights, partnerships and dialogue, bringing together the world’s leading conferences, exhibitions and roundtables in one week and one location. SIEW enriches the global energy conversation by convening political, business, academic and energy industry thought-leaders to define and advance the world’s energy challenges, solutions and actions across the spectrum of oil and gas, clean and renewable energy, and energy infrastructure financing.
Please visit www.siew.gov.sg for more information.
About the Energy Market Authority
The Energy Market Authority (EMA) is a statutory board under Singapore’s Ministry of Trade and Industry. Our main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore. Through our work, we seek to forge a progressive energy landscape for sustained growth.
Please visit www.ema.gov.sg for more information.