East Asia Science & Security Network Report, 12 October, 2005

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"East Asia Science & Security Network Report, 12 October, 2005", EASSNet, October 12, 2005, https://nautilus.org/eassnet/east-asia-science-security-network-report-12-october-2005/

1. NE Asia Regional Energy Pathways

The Nautilus Institute (D. Von Hippel, “REGIONAL ENERGY PATHS: PROGRESS REPORT AND DPRK PATHS EXAMPLE,” May 13-19, 2005) released this report from the Institute’s Asian Energy Security Workshop 2005 in Beijing, China, hosted by the Energy and Environmental Technology Center (EETC) at Tsinghua University in Beijing. In this presentation, Von Hippel relays the goals of the Nautilus Institute’s regional alternative paths analysis for North East Asia countries as part of the ongoing Asian Energy Security Project and specifies progress on Nautilus’ DPRK energy path analysis. The Nautilus Institute’s collaborative Asian Energy Security Program seeks to answer the question, “Are there regional resource-sharing activities that can move the energy system in the Northeast Asia as a whole toward enhanced energy security?”

2. Asian-Pacific Energy Forum

On 6-7 September 2005, the Far Eastern Center of Strategic Research on Fuel-and-Energy Complex hosted the first Asian-Pacific Energy Forum (APEF-2005) in Vladivostok, Russia. The Forum gathered participants from Russia (Economic Research Institute FEB RAS, Thermal Physics Institute SB RAS, Far Eastern State Technical University, Pacific Oceanology Institute FEB RAS, Far Eastern Research & Design Institute of Coal, etc.), ROK (KEEI), Japan (ERINA), PRC (Heilongjiang University), DPRK (State Planning Committee).

Nautilus Institute Associate Victor Kalashnikov (V. Kalashnikov, “ENERGY DEVELOPMENT OF THE FAR EAST: FROM SURVIVAL TO STRATEGIC DECISIONS,” Asia-Pacific Energy Forum, September 6-8, 2005, Vladivostok) released this presentation from the Asia Pacific Energy Forum. In this presentation, Kalashnikov points to energy trends and discusses recent developments in the Far East’s energy sector including transformation of energy supply, the shift to excess primary energy supply, and investment in and restructuring of energy industries. Kalashnikov also outlines proposed stages of current strategic international projects.

3. APEC Report

Australian Bureau of Agricultural and Resource Economics (ABARE) and Asia-Pacific Economic Cooperation (APEC) Energy Working Group (L. Hogan, L. Fairhead, A. Gurney, R. Pritchard, “ENERGY SECURITY IN APEC: ASSESSING THE COSTS OF ENERGY SUPPLY DISRUPTIONS AND THE IMPACTS OF ALTERNATIVE ENERGY SECURITY STRATEGIES,” June 2004) released this report to “assess the costs of temporary energy supply disruptions to APEC economies and the impacts of alternative energy responses.” The major components of the study include: analysis of economic consequences of energy supply disruption; a broad analysis of costs and benefits of response strategies to disruptions and; evaluation of long term strategies of response to energy security challenges.

View report here.

ITAR-TASS News Agency (Natalia Slavina, “RUSSIAN GOVT TO DRAW PROPOSALS ON ELECTRICITY SUPPLIES TO CHINA,” October 7, 2005, Moscow) reported that Russian Prime Minister Mikhail Fradkov ordered the Ministry of Fuel and Energy, the RAO electric utility and a number of other ministries and departments to draw proposals on the prospects for electricity supply to PRC. The proposals have to be submitted to the government as early as November. At the Thursday meeting, RAO chief Anatoly Chubais said talks are underway with PRC over implementation of the project to supply electricity to that country. The supplies may reach 50 to 60 billion kW a year, which exceeds power consumption in Russia’s Far East two-fold.

5. RFE Oil & Gas Production

Xinhua News Agency (“RUSSIA STARTS PRODUCTION OF OIL, GAS PROJECT IN FAR EAST,” October 2, 2005, Moscow) reported that a major oil and natural gas project off the Sakhalin island began its industrial production Sunday [October 2] as Russia looks increasingly to its Far East region to tap energy reserves. Some of Russia’s largest oil and gas fields are located off Sakhalin Island. The Sakhalin-1 project is a development of three fields on the northeast of the island. Total recoverable reserves are estimated to be over 300 million tons of oil and 485 billion cubic meters of natural gas.

6. RFE-DPRK Relations

ITAR-TASS News Agency (Stanislav Varivoda, “RUSSIA’S SENIOR OFFICIAL, NORTH KOREAN LEADERS TO DISCUSS TRADE,” October 8, 2005, Pyongyang) reported that trade and economic relations between regions and territories of Russia’s Far East and DPRK will be in the focal point of talks that the plenipotentiary representative of the Russian President in the Far-Eastern Federal District, Konstantin Pulikovsky is due to have here with DPRK leaders. Sources indicate Pulikovsky and his DPRK hosts will also look into the outcome of the fourth round of six-partite talks on the Korean nuclear problem and consider some aspects of the situation on the Korean Peninsula.

7. Oil Stockpiling

Agence France Presse (“JAPAN TO EXTEND OIL STOCKPILE RELEASE MEASURES,” October 7, 2005, Tokyo) reported that Japan said Friday it will extend measures to release private-sector oil reserves for another 30 days to help ease global supply bottlenecks caused by recent hurricanes in the United States. Japan said in early September it would release 7.3 million barrels of private-sector oil reserves to markets by lowering the minimum stockpile required for companies to 67 days of supply from the usual 70 days.

View report here.

International Oil Daily (Clara Tan, “HIGH OIL PRICES PROMPT ASIAN NATIONS TO EXPLORE STOCKPILE PLAN,” October 3, 2005, Singapore) reported that the Association of Southeast Asian Nations (ASEAN), along with the governments of Japan, South Korea and PRC, are taking another look at establishing a regional oil stockpile.

“With the financial support of Japan’s Ministry of Economy, Trade and Industry (Meti), Thailand and Philippines have completed a study on stockpiling in their respective countries,” Weerawat Chantanakome, executive director of the Asean Center for Energy, said last week at the Asean Economic Ministers meeting held in Laos. “Vietnam and Myanmar are now studying the case with Meti and they are expected to submit their study to the Asean Center for Energy next year. We will then put forward the proposal for feedback at the annual Asean meeting in July of next year.”

Download report here.

8. US – DPRK and KEDO

Kyodo News Service (“U.S. WANTS TO REPLACE KEDO WITH NEW ARRANGEMENT: HILL,” October 6, 2005, Washington) reported that the United States wants to terminate the existing multilateral consortium for providing light-water nuclear reactors to DPRK by the end of this year and replace it with a ‘new, more secure’ arrangement to carry out the North’s denuclearization, a top U.S. negotiator said Thursday. U.S. Assistant Secretary of State for East Asian and Pacific Affairs Christopher Hill, who serves as the chief delegate to the six-party talks on DPRK’s nuclear ambitions, spelled out the U.S. policy before the House of Representatives International Relations Committee.

View report here.

9. Mongolia Renewable Energy

BBC Monitoring (B. Bolortuya, “INVESTORS DUE IN MONGOLIA FOR RENEWABLE ENERGY CONFERENCE,” October 5, 2005, Montsame website, Ulaanbaatar) reported that the government of Mongolia and the World Bank will jointly host a consultative meeting of foreign investors for the renewable energy sector of Mongolia in Ulaanbaatar on 6-7 October 2005. The meeting will be attended by delegates from more than 20 different countries including PRC, Russia, the USA, Vietnam, India, Austria, Spain, Australia, South Korea, the Netherlands, the Philippines, and the UK, as well as international organizations such as the World Bank, the Asian Development Bank, the International Financing Corporation, the Carbon Fund and the WWF [World Wildlife Fund].

10. Japan-PRC Relations

Agence France Presse (“JAPAN SUGGESTS NEW TALKS WITH CHINA OVER DISPUTED GAS FIELD,” October 2, 2005, Tokyo) reported that Japanese industry minister Shoichi Nakagawa suggested Sunday [October 2] holding ministerial-level talks with PRC over a disputed gas field in the East China Sea. “In some cases, (Japan) will accept ministerial-level talks,” Nakagawa told reporters, according to Kyodo News. “I hope (China) is not just playing for time.” PRC agreed on Saturday [October 1]to consider a Japanese proposal for the joint exploration of energy resources in the disputed waters following two days of high-level talks on one of the Asian rivals’ biggest sources of tension.

Agence France Presse (“JAPAN SAYS CHINESE SHIPS HEADED AGAIN TO DISPUTED GAS FIELD,” October 7, 2005, Tokyo) reported that Japan said Friday that PRC had sent ships toward a contested gas field in the East China Sea, after Beijing dispatched war vessels at least twice to the area in an escalating dispute. Trade minister Shoichi Nakagawa said he confirmed that as of Thursday ships loaded with a large number of pipes were sailing toward two contested gas fields where PRC has begun production. “I don’t know their objective at this moment,” said Nakagawa, adding that Japanese government is making an inquiry with the PRC embassy in Tokyo on the matter.

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