Top Shell exec urges Asean countries to diversify energy supply

MANILA, Philippines - Southeast Asian countries, including the Philippines, must diversify energy supplies instead of just relying on one source such as coal, a ranking official of Royal Dutch Shell, the global energy giant, said.

Diversifying energy supply could help Asia overcome its resource challenge, said Simon Henry, chief financial officer for Royal Dutch Shell.

“Coal remains a fuel widely used for generating electricity in Asia. It’s readily available and cheap. But natural gas has huge potential as a means of diversifying and therefore securing the region’s energy future at a time of rocketing demand,” said Henry in a speech at Shell’s Powering Progress Together Dialogue held last week in Manila.

He urged countries to use cleaner-burning natural gas as this would improve air quality across the region. He noted that liquefied natural gas (LNG) makes it increasingly easy to transport natural gas from expanding supply hubs like Qatar and Australia to demand centers across Asia.

“Singapore and Malaysia have began importing LNG last year. Countries like Thailand, China and India are all expanding their import capacity. With global gas supplies becoming more abundant and more accessible, now is the right time to make the switch.

He cited China as an example of a country that has already identified a number of cities where it wants to replace coal-fired power stations with gas-fired stations.

“The third step needed is for government, business and civil society to embrace a new model of cross-sector, public-private, transnational partnership. Typically, governments tend to focus most keenly on what is happening within their own borders; businesses are often preoccupied with their day-to-day operations and non-governmental organizations tend to focus on specific interests.

Henry said countries could do more to plan for the future and to be able to address growing energy demand, which is expected to double by 2060.

“Pressure on key resources is building. The Asian Development Bank recently warned that water shortages may soon hamper the reliable production of food and energy across the continent,” Henry said.

In all, he urged Asian countries to work together to implement solutions.