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"ASIAN ENERGY SECURITY NETWORK DAILY REPORT, Wednesday, August 11, 2004", EASSNet, August 11, 2004,

Wednesday, August 11, 2004



1. Japan Energy Update

The Nautilus Institute (Kae Takase, Tatsujiro Suzuki, “JAPAN UPDATES, AND DRAFT EAEF SCENARIOS, May 12 – 14, 2004) released this report for the Asian Energy Security Workshop help in Beijing, China in May 2004. The report details the current status of the Japanese Energy Sector, Government and NGO outlooks, and the progress of a LEAP database and national and regional energy pathways in development by the Nautilus Institute working group. Topics in energy policies outlined include nuclear fuel cycle testing, deregulation, Kyoto Protocol compliance and renewable energy.

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2. China Support of Russian Oil Pipeline

The Moscow (Combined Reports, “CHINA KEEPS UP PIPELINE PRESSURE”, August 2, 2004) reported “Petro China, China’s largest oil producer… will not invest in a proposed plan to pipe Siberian oil to Russia’s pacific port of Nakhodka unless it includes a branch to…Daqing, China.” According to a report by Oil, Gas & Petrochemicals, Siberian oil piped to Nakhodka would cost more than imports from the Middle East.


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3.Japan Energy Objectives

The Institute of Energy Economics, Japan (Dr. Tsutomu Toichi, “JAPANESE ENERGY POLICY AND REGIONAL COOPERATION IN NORTHEAST ASIA”, July 2004) released this report detailing Japan’s energy objectives. Tsutomu writes “in addition to the assurance of energy security, the objectives of Japanese energy policy have changed, and there is now a need for simultaneous achievement of the ‘3Es’ goals-namely, ‘Economic Efficiency’ aimed at reducing energy supply costs through deregulation and liberalization measures, and ‘Environmental Protection’ aimed at reducing CO2 emissions to counter the global warming problems, as well as con-ventional ‘Energy Security.’ In order to accomplish the ‘3Es’ goals, Japan-which is the largest energy importer in this region-has to look at its energy problems from a broader perspective, taking account in particular of the Asian region as a whole.” This paper examines effective measures and policy issues for the accomplishment of Japan’s long-term energy objectives through multilateral cooperation in Northeast Asia.

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4. Korean Companies Seek Cheaper Fuel (COMPANIES SEEK CHEAPER, BETTER FUEL, August 9, 2004) reported that larger Korean corporations are looking towards liquefied natural gas in an effort to cut production costs. “Industry experts say that once companies begin importing their own gas, they will save about 30 percent of the cost of purchasing from Korea Gas Corp., which has long dominated the market.” In Korea, LNG currently generates more than two-thirds of gas for households and reliance in some periods this year has increased as much as 5.3 percent from last year.


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5. Emissions Trading, Greenhouse Gas Mitigation

The Environment Directorate of the International Energy Agency (Cedric Philibert, Julia Reinaud, “EMISSIONS TRADING: TAKING STOCK AND LOOKING FORWARD”, June 1, 2004) released this report to review the practice of emissions trading as a tool for greenhouse gas mitigation. The authors state, “looking into the future, emissions trading might be the centerpiece of international efforts to build a global and comprehensive greenhouse gas mitigation regime.” The main issue with emissions trading and taxes is identified as cost uncertainty. The paper considers what future role emissions trading could play in tackling climate change upon review of evidence about emissions trading, and of current thinking about the most important design issues, with respect to domestic regimes. “It looks at how future regimes might deal with the uncertainties surrounding climate change and, in particular, abatement costs over a century timescale.”

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6. Shell Hydrogen Mini Grid

Clean Edge News (“SHELL HYDROGEN UNVEILS NEW CONCEPT TO SUPPORT THE DEVELOPMENT OF HYDROGEN MARKETS”, July 16, 2004) reported of Shell Hydrogen’s new concept of “mini-networks” that was unveiled at the World Hydrogen Energy Conference in Japan. According to the article, Shell Hydrogen CEO Jeremy Bentham stated that Shell’s new generation of projects would guide the development of the Hydrogen Market. Mini networks will include fleets of vehicles, fueling stations, and high visibility urban projects.

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7. LEAP analysis of Millennium Development Goals

McKinsey & Company (Pepukaye Bardouille, “ENERGY: A CRITICAL INPUT TO THE MILLENNIUM DEVELOPMENT GOALS”, February 2004) undertook a pro bono engagement with the United Nations Millennium Project (MP), focusing on “costing energy-related inputs to the UN Millennium Development Goals (MDGs)”. “The MDGs, which include such goals as halving the number of people living on $1/day between 1990 and 2015, and reducing child mortality by two-thirds over the same period, are internationally agreed targets that aim to make significant inroads into addressing some of the world’s most important development challenges.” Using Long Range Energy Alternative (LEAP) software, assessment of the energy requirements necessary to support achievement of the MDGs was made for six countries: Bangladesh, Cambodia, Ghana, Malawi, Tanzania, and Uganda.

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Produced by the Nautilus Institute.


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