Younghoon David Kim

Co-chair, World Energy Council (2013~2016)

Chair, World Energy Council (2016~2019)

The Transition toward a

Resilient Gas Industry

Asia Pacific Gas Conference 2015

“…natural gas would

play an increasing role as

a transition energy source

toward a low-carbon

world.”

Korea’s City Gas Industry Growth

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Annual LNG Imports

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

No. of City Gas Customers/Yr

(Customers)

18 mil

16 mil

14 mil

12 mil

10 mil

8 mil

6 mil

4 mil

2 mil

0

(Tons)

Energy Price Trends

(Source: KEEI)

World LNG Supply and Demand

World LNG trade stood at 241.1 MT in 2014

LNG trade portion in natural gas market is about 10%

Nearly 75% of all LNG consumption occurred in the Asia-Pacific region

In 2014, 75% of all incremental supply growth came from Asia-Pacific

LNG Trade Volumes (1990~2014)

(Source: IGU(2015))

Expected Trajectory for Natural Gas Prices

(Source: Timera Energy)

Investment Delays in Oil and Gas Projects

Status of Delayed Projects

46 projects worth 200 billion dollars

Total reserves 20 billion barrels (Deep-oil $10. 6 billion; Canada oil sands $5.6 billion; etc.)

Global Liquefaction Capacity Build-Out

(Source: IHS)

Demand Trends in City Gas

For the first time since 1985 in 2014 sales volume decreased (-7.8%)

In terms of volume, growth has stagnated while qualitative growth has weakened

Overall gas industry sales revenue sluggish

(Source: Korea City Gas Association)

LNG import volume by region, 2008-14

(Source: GIIGNL (2015), The LNG Industry in 2014)

2. What is the real cost of gas?

Natural Gas: A Bridge to Nowhere?

1. How clean is gas?

So what happened to the

“Golden Age of Gas?”

Energy Valley Power to Gas video]

https://youtu.be/4iin3HKw-9U

FuelCell Energy

“…gas fuel cells

could address

the vulnerabilities

to the power and

gas industry posed by

extreme weather”

Daegu CES Social Benefit = 450,000 won+/kW

Marketing Strategy for Natural Gas

Industrial Bulk Fuel Cell GHP

Reduce the wholesale price of bulk and retail profit

R&D of highly efficient and environmentally-friendly products

Lead government policy for natural gas promotion

Marketing of natural gas supply by emphasizing environmentally-friendly

advantages

NGV Co-gen

Alexey Miller, CEO of Gazprom with Christoph Frei, Secretary General,

World Energy Council and René Bautz, Chair of the Global Gas Centre

Thank you