Launch of IEA Report on ‘Developing a Natural Gas Trading Hub in Asia’

  • Venue:Orchard Ballroom, Level 3, Orchard Hotel [442 Orchard Road Singapore, 238879]

    Date: 01 Mar 2013

EMA invites you to join us for the launch of the International Energy Agency (IEA) report on "Developing a Natural Gas Trading Hub in Asia" on Friday, 1 March 2013. Mr Laszlo Varro, IEA Head of Gas, Coal and Power Division will present the key findings of the report.

About the Report:

The trading of natural gas in the Asia-Pacific region is dominated by long-term contracts in which the price of gas is indexed to that of oil. As the price of gas between Asia and other parts of the world has widened in recent years, observers have raised serious doubts about the sustainability of this pricing model. In this report, the IEA shows what it would take to create a functional, regional natural-gas trading hub in which prices reflect the local supply and demand fundamentals.

It is generally accepted that long-term contracts play a beneficial role in providing investment security, but their current pricing does not take into account fundamentals and the competitiveness of gas within the energy mix of the mature economies where the gas is consumed. Moreover, without a competitive spot market for natural gas – one that supports and encourages price discovery – there is little incentive and little scope to change current commercial practices. This leaves both consumers and producers with insufficient room to explore different options, which limits the degree to which natural gas can serve as a flexible source of energy for both growing and mature economies.

"Developing a Natural Gas Trading Hub in Asia" aims to provide stakeholders with insights on the changes that are required in the Asia-Pacific natural gas sector – both downstream and upstream -- to allow a competitive natural gas price to emerge. Building on OECD Europe and OECD America experiences, this report sets out to assess perspectives for these changes in the Asia-Pacific natural gas markets. It identifies obstacles and opportunities for a competitive natural gas price in the Asian economies to emerge.

About the Speaker:

Mr Laszlo Varro joined the IEA in 2011 as the Head of Gas, Coal and Power Division. The division undertakes the analysis of gas, coal and electricity markets and policy developments with a special focus on supply-demand balance, capacity investments, supply security issues as well as the implications of climate policy for the gas and electricity systems.

Before joining the IEA Mr Varro worked as the Director for Strategy Development at MOL Group, a publicly quoted integrated energy company, and as the Head of Economics and Price Regulation at the Hungarian Energy Office. Mr Varro is an economist by training with graduate degrees from the Corvinus University in Budapest and the University of Cambridge.

As seats are limited, registration is on a first-come-first-served basis.

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