Thu 20 Jan 2005 at 18:00 PM
China's Developing Gas Market
Philip Andrews-Speed, Professor, Dundee University
Sponsorship is provided by Wood Mackenzie.
This event occurred on: Thursday, 20 January 2005, 6 p.m.
The sustained and rapid growth of China?s economy is putting great strain on its energy sector. The continuing dominance of coal results in substantial environmental damage at local, region and global scales. Natural gas has the potential to alleviate both the energy and the environmental problems. A concerted programme of exploration has greatly enlarged the country?s proven reserves of natural gas, but costs remain relatively high on account of geology and transportation distances. The lack of clear policy and regulatory frameworks for natural gas have discouraged foreign investors, most notably the consortium led by Shell for the West-to-East pipeline. As a result the state petroleum companies are likely to remain the principal players in the domestic gas industry. Despite the progress in developing the domestic resources China will necessarily require imports if natural gas is to play a significant role in the country?s energy supply. The first LNG plant is under construction in Guangdong. One concern for the operators is the nature of the embryonic power market into which the gas will be sold. Gas imports by pipeline from Russia have been under discussion for nearly ten years, but policy indecision on the Russian side continue to delay the finalisation of plans.
Philip Andrews-Speed is Head of Department at CEPMLP. He spent fourteen years as a geologist in the international mining and petroleum industries before coming to the Centre in 1994 and gaining an LLM in Energy Law and Policy. Since then he has been on the staff of CEPMLP, initially with responsibility for the Centre?s commercial activities and latterly as Director of Studies. He teaches mineral and petroleum taxation. His research and consultancy activities are focused on energy policy and related international investment in Asia, especially in China. He leads the China Programme which covers research, consultancy and professional training in the fields of petroleum, energy, mining and water law and policy. In 1998 he led a European Commission, Synergy Programme project on Energy Policy and Structure in China, and the following year ran a research project on the regulation of local coal mines in China. During the year 2000 he led a project to examine how competition might be introduced to the power sector in Guangdong Province, China. The project was co-financed by the Synergy Programme of the European Commission and by the State Development Planning Commission of China. In the same year he was awarded grants by the Sino-British Fellowship Trust entitled "Evaluating the role of energy in China?s foreign policy in Asia" and by the International Institute for Strategic Studies entitled "The strategic implications of China?s energy needs". Additional research interests include the implementation of the Energy Charter Treaty, and natural resource taxation.