INTSOK Gas Value Chain Seminar

Main points from the Speech (INTSOK Gas Value Chain Seminar)
Deputy Minister Ms. Liv Monica Stubholt
14. januar 2009 Swissôtel Beijing

Ms. Liv Monica Stubholt, Deputy Minister of Petroleum and Energy attended INTSOK’s seminar, “Gas Value Chain”, Wednesday 14th of January 2009 in Beijing. Her intervention focused on the importance and development of natural gas as an energy source – in the context of sustainability criteria.

Some highlights:

Energy demand is likely to continue to increase and the oil price may return to higher levels than today. It is important to prepare for this event.

Increase of energy demand in China signals economic growth and improved welfare for the country’s citizens. On the other hand, this, tests both the supply structure and global environmental issues. Thus, Chinese leaders have taken on a strong commitment to developing domestic supplies of energy and energy efficiency measures. These ambitions provide opportunities for increased political and business cooperation between China and Norway.

For a long time China and Norway have been enjoying a constructive dialogue on energy matters. The MoU on Energy Efficiency and Renewable Energy of 2006 has now been supplemented with an MoU in the petroleum sector. Signed this week with the National Energy Administration, the MoU will be a platform for cooperation on both a government and industry level.  An important objective is to provide encouragement for bilateral business development in the oil and gas industry.

As for gas, Norway identified at an early stage that natural gas holds a tremendous potential as an energy source. Proof of its economic value for Norway is reflected in an extensive pipeline network on our continental shelf, well developed markets in neighbouring European countries and commercial experience from handling sales and distribution of gas.  Moreover, use of natural gas is beneficial to the climate if gas firmly and unequivocally replaces other CO2 intensive alternatives.

Carbon capture and storage (CCS) is high on the government agenda in Norway. Substantial funds have been allocated to boost R&D on CCS. The purpose is to minimize the GHG emissions from the production and use of fossil fuels, and to deploy relevant technologies as quickly as possible by making such technologies available and affordable in the international market place. Norway welcomes Chinese partners to cooperate within the field of carbon capture and storage.

The newly signed MoU in the petroleum sector is a two way street, providing opportunities in Norway and China. Last year we observed the acquisition of Norwegian Awilco by COSL, a Chinese oil service company. This illustrates that bilateral investments flow both ways.

MoU