th 14 International Gas and Electricity Summit Speech by Sam Laidlaw, Chief Executive, Centrica plc 21 October 2009
What is the future for gas Speech by Sam Laidlaw, Chief Executive, Centrica plc Slide 1 Good morning Ladies and Gentlemen and welcome. I am very pleased to have been given the opportunity to speak to you here in Paris as I believe we…
Atlantic Basin, driving lower spot prices and significantly higher storage levels in Europe and the US; and a continued pull back in upstream investment as marginal gas fields become uneconomic; Against this near term volatility…
improvements in technology drove the ability to move gas from prolific sources of the world to consuming markets everywhere. Slide 5 As the global trade of gas has expanded we have seen a gradual narrowing of spreads and basis…
However, it will not necessarily evolve in this fashion. Without constructive engagement from those of us in the industry, it will lose its place in the global merit order. To become the fuel of the future requires new partnership between…
Which, in turn, leads us to Global gas demand rising as gas fired power generation is seen as a relatively cheap, clean power source that displaces coal and backs up intermittent wind; and More secure supply and stable pricing of…
Slide 8 The UK continues to face the challenges of a rapid decline in its own gas production which peaked in 2000. So the UK has gone from a position of surplus to imports in 2004. Now only five years later the UK expects to import 50% of…
significant investment in LNG import capacity. But more recently a focus on energy independence and an increase in commodity prices during the boom has seen a shift into unconventional sources of gas. Slide 10 Future reserves,…
Markets like the UK that have long term supplies of piped gas but no long term LNG contracts are therefore exposed to the volatility and lack of security of spot markets. All global markets, even deep and liquid ones like the US and UK…
much like the large automobile manufacturers and Utilities are working together to accelerate electric vehicles which in turn will require low carbon gas fired electricity. Slide 13 If we look at centralised generation the potential for…
current generation capacity could be expected to remain on the system for many years to come. So a better way of looking at the possible market for gas in China is to look at the 330GW of new coal that could be expected onto the system…
Centrica driving consumer demand. All markets, even deep and liquid ones like the US and UK, need to ensure security of supply. Despite massive investments the UK does not yet have enough control of its security of supply. Its domestic…
model of long term relationships between LNG producer/suppliers (resource holders) and supplier of gas consumers (demand holders). I believe there may be a parallel to be drawn from Global Oil Markets. In that market, we have…
Demand holders and Resource holders have to decide whether they want to move gas in and out of markets flexibly always seeking optionality over security, in which case we have to accept the consequences of progressive gas demand…
Loading...
