Energy: Symposium on Natural Gas and Utilization in Northern Asia

Report

Aide Memoire

Background and justification / Goals and objectives / Programme / Targeted Participants / Documentation / Venue / Language / Registration / Registration fee / Administrative arrangements / Communications

I.  Background and justification

The Northeast Asia region includes China, the Democratic People’s Republic of Korea, Japan, Mongolia, the Republic of Korea and the Far East of Russia.

High rates of economic growth in the past, especially in China, Japan and the Republic of Korea have been accompanied by considerable increases in energy consumption. Similar trends are expected to pertain in the foreseeable future. While the national energy situation and prospects for each of these countries is quite different, all of them, except for the Far East of Russia are expected to become even more dependent on energy imports despite considerable efforts, especially in China, in the exploration and development of indigenous energy resources.

The energy consumption patterns of the region are dominated by coal which is plentiful in China, Mongolia, the Democratic People’s Republic of Korea and Far East Russia. High coal consumption has caused serious atmospheric pollution at local and regional levels in the form of particulates (i.e., Fly ash, soot, heavy metals) and acid rain and contributes significantly to greenhouse gases with possible impacts on global climate change.

All the countries of the region are examining energy alternatives which may contribute to the amelioration of their environmental situation and prospects in the context of reductions of greenhouse gas emissions mandated by the Third Convention of Parties of the United Nations Framework on Climate Change while at the same time contributing to energy requirements which will remain essential for economic and social progress. Natural gas is widely considered to be such an energy alternative because of its relatively low greenhouse gas emissions and recent technological advances in nature gas utilization, particularly in electric power generation and promising developments in natural gas uses for road transport and its conversion to clean liquids and specialty chemicals.

As compared to North America and Europe, where extensive natural gas distribution networks have been built with large investments during the past three to five decades, the contribution of natural gas to the energy consumption pattern of the Northeast Asia region remains relatively low, although Japan and the Republic of Korea are major importers of liquefied natural gas (LNG) which is used especially for electric power generation and petrochemicals. Heavy investments will be required in all the countries of the region for augmented natural gas utilization in these important sectors of their economies as well as in natural gas distribution systems for the residential and commercial sectors.

World natural gas reserves are large and equal or more than world reserves of oil. Russia has by far the biggest natural gas reserves. Similarly Far East Russia is endowed with considerable natural gas reserves which remain undeveloped and underutilized because of the low density of population and very low effective demand. Political developments pertaining to the former Soviet Union during the past decade have led to an opening up of areas in Far East Russia for the exploration and development of energy resources by both Russian and transnational enterprises.

Development of oil and gas deposits in the Republic of Sakha (Yakutiya) and neighboring Ivkutsk Region is behind those of offshore Sakhalin but recent agreements indicate intensified exploration and development efforts which promise sizeable natural gas discoveries and development of existing reserves.

Sakhalin in the Far East of Russia has long been known to have considerable resources of natural gas and oil on the continental shelf. Two offshore exploration and development projects, Sakhalin I and Sakhalin II have started operations and Sakhalin III and Sakhalin IV are at a preparatory stage with the participation of both Russian and foreign petroleum corporations.

The development of natural gas in Far East Russia will be greatly influenced by prospective demand in all the countries of the Northeast Asia region and intercountry agreements for its transportation and utilization.

A variety of interested parties in the countries of the Northeast Asia region have been studying and consulting each other on the technical, political, economic and financial feasibility of this important endeavour. Such a consultation was held in Beijing at the Second International Conference on Northeast Asian Natural Gas Pipeline (22-24 September, 1996) with more than 150 participants from China, Japan, Mongolia, the Republic of Korea and Russia as well as Australia, Canada, Germany, Italy, Thailand, UK and USA. That conference covered (a) Natural Gas Supply Potential, (b) International Pipeline and Natural Gas Industry, (c) Financing and Organizational Issues and (d) Possibilities of Future Cooperation.

II. Goals and objectives

The immediate goal of the Symposium is to provide an opportunity for expert participants from countries within and outside the Northeast Asia region to update their information and analyses on natural gas supply and demand prospects in Northeast Asia in view of the rapidly changing energy situation, prices and prospects as well as changes in national energy policies with regard to the exploration and development of natural gas resources, their transportation through land and subsea pipelines and LNG carriers and their utilization through the application of new technologies. Another goal of the Symposium is to examine various arrangements for the mobilization of financing for investments at all stages of the exploration and development, transportation and utilization cycle of natural gas with emphasis on intercountry cooperation.

The Symposium is expected to arrive at conclusions and recommendations on prospects of supply and demand of natural gas in the Northeast Asia region, the technical and economic feasibility of natural gas supply, transport and utilization options as well as possibilities of raising adequate and appropriate financing and enhancing intercountry cooperation.

The long-term objective of the Symposium is to facilitate intercountry cooperation in the development, transportation and utilization of natural gas as an essential energy contribution to the economic and social development of the countries of the region with minimum deleterious effects on health, environment and global climate change.

III. Programme

The programme of the Symposium will be divided into the following consecutive sections:

Trends and Prospects in Natural Gas Development, Transportation and Utilization

The Role of Natural Gas in World Energy Patterns and Prospects with Particular Reference to Northeast Asia 
Impact of Globalisation on the Exploration, Development, Transport and Utilisation of Natural Gas

New Technologies in Natural Gas Utilisation

Transport of Natural Gas

Technical, Economic and Financial Aspects of Natural Gas Pipelines and Distribution Systems

Technical and Economic Feasibility of Subsea Natural Gas Pipelines.

Technical, Economic and Financial Aspects of LNG Carriers and Associated Infrastructures.Intercountry Agreements for Transit of Natural Gas Pipelines

Utilization of Natural Gas

Residential and Commercial Uses of Natural Gas.

Natural Gas in Electric Power Generation .

New Technologies of Natural Gas Utilization as Transport Fuel

Non-Energy Uses of Natural Gas.

Capital Requirements, Financial Sources and Methods of Financing of Natural Gas Development, Transport and Utilization

Costs and Pricing of Natural Gas.

Trends in Capital Requirements and Financing of Natural Gas Exploration and Development.

Capital Requirements, Financial Sources and Methods of Financing of Natural Gas Transport and Utilization.

Safety, Environmental, Legislative and Institutional Aspects of Natural Gas Development, Transport and Utilization

Safety and Environmental Aspects of Natural Gas Development, Transport and Utilization.

Legislative, Regulatory and Institutional Aspects of Natural Gas Development, Transport and Utilization.

Changes in National Policies for the Promotion of Natural Gas Utilization in Northeast Asia.

IV. Targeted Participants

The Symposium will bring together expert participants with experience in energy planning, natural gas exploration, development, transport and utilization, electric power and other energy sources as well as expert participants from transnational and national energy enterprises, research and financing institutions.

V. Documentation

Background study prepared by United Nations consultants and experts from Chinese Academy of Social Science which will address issues related to natural gas transport and utilization, including economic viability, political and institutional prerequisites, environmental and ecological impact and social considerations and conclude with recommendations for further actions through cooperation among the countries of the Northeast Asian region and the international natural gas industry and financial community

Country papers prepared by expert participants from the Northeast Asia region including China, DPRK, Japan, Mongolia, ROK and Russia

Papers on topics as per item III by international experts to be invited by the United Nations.

Prospective authors are required to submit to UNDESA a brief outline on their selected topic by 15 September 2000 and completed papers by 31 October. Detailed instructions on papers will be issued on acceptance of outlines. Only papers by authors who plan to attend the Symposium will be accepted and included in the proceedings of the Symposium.

VI. Venue

The Symposium will be held at Jianguo Garden Hotel, Beijing, China, 4-6 December 2000. The Chinese Academy of Social Science as the host institution will reserve rooms for participants at a discounted rate. Detailed information about the hotel facility will be distributed in due course.

VII. Language

The proceedings of the Symposium will be conducted in English.

VIII. Registration

All prospective participants should complete attached registration form for submission by 15 September 2000. Arrangement for exhibition space can be made through the United Nations.

IX. Registration fee

The general registration fee of US$ 400/person covers attendance at the Symposium, including all plenary and panel discussions, one copy each of the background information and the bound proceedings (to be distributed at the registration desk), refreshment breaks, and the opening conference reception.

X. Administrative arrangements

All participants will be responsible for their own travel arrangements. The United Nations and Chinese Academy of Social Science will issue an invitation letter to facilitate applications for Chinese entry visas and will provide appropriate information upon request.

XI. Communications

The Secretariat for the Symposium is the United Nations Department of Economic and Social Affairs (UNDESA). The address for the Secretariat is:

Mr. Kui-Nang Mak, Chief 
Energy and Transport Branch 
Division of Sustainable Development 
Room DC1-890, 1 UN Plaza 
New York, NY 10017, USA 
Telephone: 1-212-963-8798 
Fax: 1-212-963-4340 
Email: makk@un.org 
lis@un.org 

The Government organizer contact is:

Mr. Teng Teng, Director 
Center for Sustainable Development 
The Chinese Academy of Social Science 
No. 5, Jian Guo Men Nei Dajie 
Beijing, China 
Telephone: 86-10-6513-7697 
Fax: 86-10-6513-6105

Email: Teng Teng@cass.net.cn 
Langping@cass.net.cn