Head of the Gastech Consortium, a group of Japanese energy companies, and former Executive Director of the International Energy Agency (IEA)
“The next natural gas revolution will be one of the biggest topics for this year’s conference. The first revolution saw shale gas become cheaper than other energy sources such as coal, nuclear or renewables in North America.
The next revolution, according to the IEA, will see liquefied natural gas (LNG) overtake pipelines as the main way to deliver gas by 2040.
The rise of LNG will help increase gas use in the power sector and, because it’s a cleaner energy source than oil or coal, gas will become much more significant for the global energy market than it is now.
However, the major source of Asia’s energy in 2040 is still likely to be oil. So how the oil market develops is a major concern.
Low oil prices mean there is less investment in countries with high production costs, so importing countries of Asia will have to depend much more on the typically lower-cost Middle East producers in the future. This is a challenge for the energy security of Asia.
If oil supply becomes unstable and prices more volatile, for example, perhaps the importing countries of Asia should move from oil and coal to cleaner-burning gas.
Another energy security challenge is whether we can maintain our nuclear power generation capacity over the long term.”