Conference co-chairmen, Dr Andy Flower and Dr Fereidun Fesharaki,

Distinguished Guests
Ladies and Gentlemen

Introduction
Good morning. Thank you for inviting me to be part of this conference.

2. The theme for this year's conference - "Asian LNG markets in transition - traditional versus new LNG supplies" - is apt and timely.
The advent of unconventional gas production in North America has introduced new dynamics to the global gas market. Asian economies, with its rising demand for energy, are proactively seeking alternative sources of fuel to boost supply and enhance energy security. It is, hence, important for us as policy makers and industry leaders here in Asia, to understand the drivers and implications of these changes.

LNG supply changes
3. The single largest game-changer on the supply scene in recent years has been the significant breakthrough in shale gas extraction methods in North America. It has already affected the flow of LNG trades : US demand for
LNG import has drastically decreased from a peak of 16 million tonnes in 2007, to 7 million tonnes in 2011. LNG supplies from projects that were developed to meet expected demand from the US are now available to the global market. In fact, the US could also become a significant exporter of LNG. A detailed study recently commissioned by the US Department of Energy projected net economic benefits to the US from exporting LNG. LNG exports from the US could therefore add to the supply of gas available for global buyers.

4. The successful development of shale gas production in the US has further prompted companies to invest in similar operations in China, Latin America and parts of Europe.


Together with other supply sources in the Middle East, Russia and Africa, the prospect of an enlarged, diversified and tradable LNG market becomes more accessible than ever. Asian LNG importers naturally welcome this prospect.
distributed by