Mr Amos Hochstein, Special Envoy and Coordinator of International Energy Affairs, US State Department,
Your Excellency Kirk Wagar, US Ambassador to Singapore (tbc),
Distinguished Guests,
Ladies and Gentlemen
1. Good afternoon and a warm welcome to Singapore. I am pleased to join you today for the Asia Gas Market Workshop, co-organised by both the Energy Market Authority of Singapore and the US State Department, and held in association with the Singapore International Energy Week.
Gas Developments
2. This workshop is timely given the growing importance of gas in both Asia and in the world’s energy mix. Since 2013, 23 new LNG import terminals have commenced operations, of which 18 are in Asia. 19 more terminals are currently under construction, which will add a further 58 Mtpa of LNG import capacity. In Southeast Asia, gas consumption for power generation is expected to continue to increase in tandem with the construction of new gas pipelines and regasification capacity. The US will play an increasingly important role as both the largest natural gas market in the world and also one of the largest gas producers.
3. Today’s workshop aims to discuss two key issues that are important for the continued healthy development of the Asian gas market.
4. The first issue is about gas price discovery for Asia. Asia has traditionally bought gas that is linked to oil. While this has worked reasonably well in the past, is there an opportunity for Asia to have its own gas price? One that better reflects the fundamental supply and demand of the region. As this develops, how would it affect supply and demand of gas, as well as investments in gas infrastructure?
5. The second issue is about market barriers for gas trade. I believe it is in everyone’s interest to create a more efficient and transparent gas market for Asia. If we can achieve this, we will be able to provide governments, businesses and consumers greater flexibility and confidence to adopt gas as the fuel of choice to meet Asia’s growing energy demand.
6. Against this backdrop, I am happy to see representatives from the key gas players from the US and the region at today’s workshop. I look forward to a robust discussion on these key issues of mutual interest.
ASEAN-US Cooperation
7. ASEAN’s energy cooperation with the US goes beyond gas. Underpinned by the US-Asia Pacific Comprehensive Economic Partnership (USACEP), we have worked together on other aspects such as energy efficiency in buildings, and private and public partnerships for infrastructure development. Moving ahead, we look forward to more collaboration and projects under the USACEP which would bring about greater benefits to Southeast Asia, and the Asia Pacific region as a whole.
8. Singapore is honoured to be the country coordinator for energy cooperation between ASEAN and the US. Earlier this month, we finalised the ASEAN-US Work Plan for Energy Cooperation from 2016 to 2020 which aligns itself to the priorities highlighted in the ASEAN Plan of Action for Energy Cooperation Phase 1. The plan focuses on the implementation of short to medium-term measures from 2016 to 2020 to enhance energy security cooperation between ASEAN and the US, and charts out further steps towards greater connectivity and integration. We look forward to the US’ continued support for this endorsed Plan of Action.
Conclusion
9. On that note, I would like to wish all participants and attendees a fruitful discussion. I wish the workshop great success and hope that the participants would be able to build relationships, friendships as well as find new opportunities for us to move towards the development of an efficient, sustainable and competitive Asia Gas market.
10. Thank you.