SINGAPORE, Oct 31, 2017 - (Antara) - The Gas Asia Summit & Exhibition (GAS 2017) kicked off its 5th Edition this week with hard-hitting insights from across the natural gas and Liquefied Natural Gas (LNG) value chain. With global demand for gas expected to grow by 1.6% per annum over the next five years (according to the International Energy Agency), GAS 2017 provided attendees with a critical overview of their industry, and knowledge to better navigate this dynamic sector and understand the opportunities present in gas markets across the region.
Themed "Connecting the Gas & LNG Value Chain across Asia", GAS 2017 is expected to attract over 1,200 regional and international attendees over the two-day event. Starting the day was Mr Gerard Leeuwenburgh, Vice President - Asia, dmg :: events Asia Pacific Pte Ltd, who set the stage, emphasising the crucial role Gas & LNG must play in developing a more carbon neutral energy supply for a growing Asian population with increasing energy demand in coming years.
This sentiment was shared by Mr Daniel Reinbott, Partner, Ashurst LLP. He added, "Promoting natural gas, particularly as a replacement to other less clean fossil fuels, is key for the future and success of gas in the region, while the alignment of stakeholders across the gas value chain is essential."
With Singapore earmarked as a future Asian LNG hub, the government is putting initiatives in place. In an announcement on Wednesday by Dr Koh Poh Koon, Singapore's Senior Minister of State for Trade and Industry, Pavilion Gas and Shell Eastern Trading were both formally issued with LNG import licences, ending an exclusive franchise previously awarded BG, now Shell. Singapore has also lifted the moratorium on Piped Natural Gas (PNG) imports to encourage greater competition among gas suppliers.
Looking through the lens of the buyer and supplier, several key insights were highlighted by both parties when considering the future direction of Global Gas & LNG Trade:
- Uncertainty in supply and demand patterns, but opportunities are abundant
Global oversupply will continue into the next decade, leading to depressed prices for LNG and plants around the world running below capacity, adding uncertainty on future supply patterns.
The global market is currently dominated by new suppliers, with ASEAN exporters losing market share. Rising domestic demand in the region has also led to less exports from this region. One such contender is Australia. The country is poised to overtake Qatar as the largest LNG exporter with the recent wave of projects. Australia's domestic gas crunch and new restriction policies set by the government could further restrain LNG exports.
Across the world, several supply development projects have been cancelled or delayed, adding to the unpredictability of supply delivery timelines. Cost optimisation for new and completed projects continues to be a key concern for suppliers and investors.
Additional factors include competition from other sources of energy such as coal in developing countries due to its low cost. Nuclear energy on the other hand, is expected to erode the demand in Japan. According to Masakazu Toyoda, Chairman and CEO, The Institute of Energy Economics, Japan, the recommissioning of nuclear plants in Japan will impact their LNG consumption. By 2020, their consumption is expected to go down when the projected reoperation of their nuclear plants is realised.
Despite coal being a dominant source of energy over the next ten years, Khurram Majeed, General Manager, Asia Pacific, Turbomachinery & Process Solutions, Baker Hughes, explained that the growth rate will be outpaced by the growth of renewables and gas. He projects that renewables will be the fastest growing segment in the energy mix in the next decade.
Demand for LNG in Thailand and Indonesia is expected to increase, fuelled by population and economic growth. Thailand's demand for LNG is forecast at 35 million tonnes per annum by 2036. Mr Porrasak Ngamsompark, Acting Director, Bureau of LNG Management, Ministry of Energy, Thailand, said that even with existing long term contracts, there was room for additional suppliers in the market. Thailand currently relies on gas for 70% of its power production, but domestic LNG production will decline with diversification of suppliers from around the world.
In Indonesia, challenges unique to the archipelago remain, but Pertamina is boosting its infrastructure to meet the gas demand in different parts of Indonesia. There is also growing supply from emerging markets such as Mozambique.
- There is a need for a price index that is relevant to the Asian market
A number of speakers too echoed the importance of moving away from the traditional oil index to an Asian-based price index. Having a gas pricing that better reflects gas supply and demand dynamics here remains vital to the long-term prospects of the gas market. New price signals will create greater contract and market flexibility to the benefit of consumers and producers.
- Policy support and cross regional collaborations vital to LNG growth
Supportive policies across the region are vital to maintaining LNG industry prospects in the long term. Sharing this sentiment was Dr Sun Xiansheng, Secretary General, International Energy Forum, "The role of policy support is very important to ensure the demand for LNG in Asia."
A strong push towards renewables and gas, coupled with investment in infrastructure across the value chain, may cause demand to rise. Singapore is retooling itself as a gas hub by adding infrastructure and supporting new business initiatives. The injection of funds, expertise and technology can also extend beyond geographical boundaries.
Japan recently announced $10 billion in support of joint private enterprise and government projects to supply LNG or build LNG infrastructure in Asia. In Southeast Asia, Thailand is currently conducting a feasibility study for constructing an LNG receiving & distribution terminal in Myanmar, in order to facilitate onshore LNG transportation to Thailand.
The impact of geopolitical change on the economy was further elaborated by Mr Simon Baptist, Chief Economist, The Economist Intelligence Unit. He shared a view that new price dynamics would keep the oil price in a narrower range, but escalation of the Qatari crisis could cause gas prices to spike. Natural gas prices will continue to converge.
The Conference turned to the recent momentum of gas in the energy mix, comparing it to other renewables and to coal at the roundtable session. Participants debated the potential of battery storage, the future of the combustion engine, and predictions of fossil fuels here to stay, especially with the thirst for energy from developing countries.
Advances in technology will be the disruptor in the energy arena. Renowned oil and gas companies venture increasingly into the energy sector, and growing battery markets.
- Interactive sessions with live polling reflecting the dynamism of the industry
As part of a rapidly evolving industry, GAS 2017 incorporates new elements this year. Through interactive sessions, delegates are able to pose questions to experts and gain first hand advice on their business ideas, services, and solutions. The live polling conducted yesterday also revealed that there was a resounding agreement that gas will remain the preferred transition fuel to a sustainable energy future.
- A marketplace for networking, creating and maintining profitable connections
As an extension to the conference, the free-to-attend Exhibition was also abuzz with activity. Over 1,200 visitors registered to visit the exhibition floor, seeking new business opportunities and strengthening existing relations through discovering latest developments. Exhibitors took every opportunity to showcase their innovations and solutions, important to further advancing the market.
Photos from this year's GAS are available at:
https://www.dropbox.com/sh/6vegxj1q8y6ka2w/AACYUNK6hPMDo0S9BwHveon7a?dl=0
Please attribute photos to GAS 2017.
About Gas Asia Summit & Exhibition (GAS) 2017
Gas Asia Summit & Exhibition (GAS) returns in its 5th edition to the Marina Bay Sands in Singapore from 25 to 27 October 2017 as part of the Singapore International Energy Week (SIEW). GAS is the legacy event to the Gastech Conference & Exhibition - the world's largest event for the natural gas & LNG industry and also encompasses the Asia Pacific Small & Mid-Scale LNG (APAC LNG) Forum.
This multi-stream event gathers a global spectrum of VIPs, C-level executives, business leaders, technical experts and industry practitioners. It is a crucial business platform for the natural gas and LNG industry in Asia to discuss regional developments, discover innovative solutions and build profitable business relations. Learn more about the Gas Asia Summit (GAS) at www.gasasiasummit.com.
About dmg :: events
A trusted brand for more than 40 years, dmg :: events (Global Energy) has organized many of the world's most important exhibitions and conferences including ADIPEC in Abu Dhabi, Gastech in Japan and Global Petroleum Show in Calgary, Canada. Our flagship events are ranked among the top 10 energy events in the world. Our expertise and networks allow us to provide the best content, targeted audiences and strategic marketing campaigns to get you face-to-face with more business contacts. For further information, please visit www.dmgevents.com.
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