report to parliament ministerial visit singapore ... · 5.10pm arrive at marina bay sands hotel,...

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Report to Parliament

Ministerial Visit

Singapore International Energy Week

27 October – 3 November 2013

The Honourable Mark McArdle MP

Minister for Energy and Water Supply

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TABLE OF CONTENTS

PROGRAM ......................................................................................................................................... 3

OFFICIAL DELEGATION MEMBERS ...................................................................................................... 9

SINGAPORE INTERNATIONAL ENERGY WEEK WELCOME DINNER ..................................................... 10

SIEW: SINGAPORE ENERGY SUMMIT ................................................................................................ 12

MEETING: AUSTRALIAN HIGH COMMISSION .................................................................................... 15

MEETING: MR S. ISWARAN, MINISTER IN THE PRIME MINISTER’S OFFICE, SECOND MINISTER FOR

HOME AFFAIRS AND SECOND MINISTER FOR TRADE AND INDUSTRY ............................................... 16

SITE VISIT TO NEWATER VISITOR CENTRE ........................................................................................ 17

SIEW: INTERNATIONAL ENERGY AGENCY’S (IEA) WORLD ENERGY OUTLOOK 2013 SPECIAL REPORT

ON "SOUTHEAST ASIA ENERGY OUTLOOK” LUNCH .......................................................................... 18

SITE VISIT: SINGAPORE CITY GALLERY .............................................................................................. 19

MEETING: SINGAPORE POWER LTD ................................................................................................. 20

SIEW: SECOND ANNUAL GAS SUMMIT ............................................................................................. 21

SIEW: YOUTH IN DIALOGUE ............................................................................................................. 22

SIEW: ROUNDTABLE C: NUCLEAR GOVERNANCE .............................................................................. 23

SITE VISIT: BIOPOLIS RESEARCH HUB ............................................................................................... 24

SITE VISIT: MARINA BARRAGE .......................................................................................................... 25

MEETING: PUBLIC UTILITIES BOARD ................................................................................................. 26

MEETING: ENERGY SECTOR LUNCH .................................................................................................. 28

SITE VISIT: HYFLUX TUASPRING DESALINATION PLANT..................................................................... 29

MEETING: AUSTCHAM SINGAPORE .................................................................................................. 30

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PROGRAM

Note: Times are in Singapore time. Singapore is two hours behind Brisbane

Sunday 27 October 2013

10:45 am Depart Brisbane to Singapore, QF51

4.05 pm Arrive at Singapore Changi Airport

4.40 pm Depart for Marina Bay Sands Hotel

5.10pm Arrive at Marina Bay Sands Hotel, check in

6.50 pm Depart for Fullerton Bay Hotel

7.00 pm Attend Singapore International Energy Week Welcome Dinner

Hosted by Mr S. Iswaran, Singapore Second Minister for Home

Affairs and Second Minister for Trade and Industry

Venue: Clifford Restaurant, Fullerton Bay Hotel

80 Collyer Quay

8.45 pm Dinner concludes, depart for Marina Bay Sands Hotel

9.00 pm Arrive at Marina Bay Sands Hotel

Monday 28 October 2013

8.30 am Depart for Marina Bay Sands Convention Centre

8.40 am SIEW Registration

9.00 am SIEW Opening Keynote Address by Sheikh Khalid Bin Khalifa Al-Thani, Chief

Executive Officer, QATAR Gas

Venue: Marina Bay Sands Convention Centre

10.00 am Media Interview by Financial Times

Venue: Room 5101 then Room 5102, Marina Bay Sands Convention

Centre

10.20 am Media Interview by CNBC (live)

Venue: Media Wall, Level 5, Marina Bay Sands Convention Centre

11.00 am Meeting with Chargé d’affaires, Ms Julie Heckscher

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11.45 am Call on Mr S. Iswaran, Minister in the Prime Minister’s Office, Second

Minister for Home Affairs and Second Minister for Trade and Industry

Venue: Room 5002, Marina Bay Sands Convention Centre

12.15 pm Meeting concludes; depart for Session 2 – “In conversation- Gas, a game

changer?”

1.30 pm Singapore Energy Summit (SES) Session 3 – “Re-drawing the Energy Map”

2.00 pm Depart Session 3 for Panellist Briefing

2.15 pm Panellist Briefing

Venue: Holding Room 5103, Marina Bay Sands Convention Centre

2.30 pm Singapore Energy Summit (SES) Session 4 – “The Resurgence of Fossil Fuels”

Continued dominance of fossil fuels in energy policies and markets

Moderator: Dr Weerawat Chatanakome, CEO, Brunei National

Energy Research Institute

3.30 pm VIP Tour-Singapore Energy Showcase & Youth Showcase

Venue: Level 4, Foyer Area, Marina Bay Sands Convention Centre

5.50 pm Depart for Gardens by the Bay

6.15 pm Visit to Flower Dome

Venue: Gardens by the Bay

7.00 pm Tour concludes, depart for Marina Bay Sands Hotel


Tuesday 29 October 2013


8.15 am Media Interview by Bloomberg Wire, Reuters and Energy Intelligence

Venue: Melati Room 4011, Marina Bay Sands Convention Centre

8.45 am Media Interview by BBC

Venue: Outside Melati Room 4011, Marina Bay Sands Convention

Centre

9.00 am Depart for NEWater Visitor Centre

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9.15 am Arrive at NEWater Visitor Centre

Met on arrival by Geoffrey Stephens, Assistant Manager, PUB

Venue: Koh Sek Lim Road

10.15 am Depart for Marina Bay Sands Hotel

12.00 pm International Energy Agency (IEA) Lunch

Venue: Marina Bay Sands Convention Centre

2.15 pm Depart for Singapore City Gallery

2.30 pm Arrive at Singapore City Gallery

Met on arrival by Vivian Tan, Manager, Corporate Division

Venue: URA, VIP Entrance, 45 Maxwell Road

3.30 pm Tour concludes, depart for meeting with Singapore Power Ltd

3.45 pm Meeting with Mr Wong Kim Yin, Chief Executive, Singapore Power

Venue: Room 4E, Marina Bay Sands Convention Centre

6.00 pm Depart for Gardens by the Bay

6.15 pm Visit to Cloud Forest Dome

Venue: Gardens by the Bay

7.00 pm Tour concludes; depart for Marina Bay Sands Hotel

Wednesday 30 October 2013


8.45 am 2nd Annual Gas Asia Summit Registration

Venue: Holding Room Lotus 4B, Marina Bay Sands Convention

Centre

9.00 am Welcome address

9.30 am Examining the Gas infrastructure and target model to ensure security of

supply in Singapore: Featuring the strategic and commercial aims for

securing energy through investments in the LNG value chain

10.00 am In Dialogue with Youth

12.00 pm Attend 2nd Annual Gas Asia Summit

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12.00 pm The future for Coal Seam Gas Exports

12.30 pm Special Address: Guy Broggi, Senior Advisory LNG, Total

12.45 pm East Africa Case Study: Looking at the potential for exports from

Mozambique

1.20 pm – 2.30 pm Networking Lunch

2.30 pm Canada Case Study: Looking at the potential for exports from British

Columbia

3.00 pm The outlook for the Japanese Natural Gas Market: Reviewing Japan’s long

term energy plan

3.30 pm Gauging the need for energy diversification: LNP and pipeline gas imports

and consumption in China

4.00 pm Networking break

4.30 pm Determining the impact of long term gas contracts versus spot trade in

2013 and beyond: How will LNG be priced?

5.10 pm Closing remarks


Thursday 31 October 2013


8.30 am Roundtable C: Nuclear Governance Post-Fukushima Registration

Venue: Marina Bay Sands, 10 Bayfront Avenue

9.00 am Opening remarks

9.20 am Theme 1, Part 1: Global trends in Nuclear Energy Policies and technology

post-Fukushima

10.20 am Tea Break

10.50 am Theme 1, Part 2: Roundtable discussion on global trends in and Nuclear

Energy Policies & its impact on the security landscape in Asia

12.00 pm Lunch Break

1.30 pm Depart for Biopolis

2.00 pm Site Visit to Biopolis

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Venue: Helios Building, 11 Biopolis Way, Singapore



Friday 1 November 2013

8.45 am Depart for Marina Barrage

9.00 am Site visit to Marina Barrage

Venue: 260 Marina Way, Singapore

10.00 am Depart for Marina Bay Sands Hotel

10.15 am Arrive at Marina Bay Sands Hotel

10.30 am Depart for Public Utilities Board

11.00 am Meeting with Mr Chan Yoon Kum, Deputy Chief Executive Officer, Singapore

Public Utilities Board

Venue: Environment Building, 40 Scotts Road

12.00 pm Depart for High Commissioner’s Residence

12.30 pm Energy Sector lunch hosted by Julie Heckscher,

Chargé d'affaires at High Commissioner’s residence

Venue: 9 White House Park

2.15 pm Lunch concludes; depart for Hyflux Tuaspring Desalination Plant

3.00 pm Site visit to Hyflux Tuaspring Desalination Plant

Venue: 92 Tuas South Avenue 3

5.00 pm Depart for Republic Plaza

5.30 pm Meet with AustCham

Venue: The Tower Club, Republic Plaza



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Saturday 2 November 2013

4.30 pm Check out Marina Bay Sands Hotel

5.00 pm Depart Marina Bay Sands Hotel for Changi Airport

6.00 pm Arrive at Changi Airport

7.55 pm Depart on QF52 to Brisbane

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OFFICIAL DELEGATION MEMBERS

The Honourable Mark McArdle, Minister for Energy and Water Supply

Mr Anthony Jones, Principal Advisor, Office of the Minister

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SINGAPORE INTERNATIONAL ENERGY WEEK WELCOME DINNER

Date: 27 October 2013 Venue: Fullerton Bay Hotel 80 Collyer Quay, Singapore

ATTENDEES Mr S. Iswaran, Minister in the Prime Minister’s Office, Second Minister for Home Affairs

and Second Minister for Trade and Industry

HE Jose Maria Figueres

President, Carbon War Room and Former President, Costa Rica

HE Dr Cham Prasidh

Senior Minister and Minister of Industry, Mines and Energy, Cambodia

HE Datuk Seri Panglima Dr Maximus Johnity Ongkili

Minister of Energy, Green Technology and Water, Malaysia

YB Pehin Dato Dr Awang Haji Mohammad Yasmin bin Haji Umar

Minister of Energy, Brunei Darussalam

Sheikh Khalid Bin Khalifa Al-Thani

CEO, Qatar Gas

HE Suhail Mohammed Al Mazrouei

Minister of Energy, United Arab Emirates

Mr Adnan Amin Director-General, International Renewable Energy Agency (IRENA) HE Mark McArdle Minister of Energy & Water Supply, Queensland Government, Australia HE Dr Sat Samy Secretary of State, Ministry of Industry, Mines and Energy, Cambodia HE U Aung Htoo Deputy Minister of Energy, Myanmar Mr Alexander Bychkov

Deputy Director General and Head, Department of Nuclear Energy, IAEA

Mr Yang Qing Executive Vice President, State Grid Corporation of China Mr Amos J Hochstein

Deputy Assistant Secretary for Energy Diplomacy, Bureau of Energy Resources, State Department, USA

Mr Chavalit Pichalai

Inspector General, Ministry of Energy, Thailand

Mr Le Tuan Phong Deputy Director General, General Directorate of Energy, Vietnam Mr Hiroshi Ozaki President, Osaka Gas Mr David Pumphrey

Co-Director and Senior Fellow, Energy and National Security Program Center for Strategic and International Studies

Mr Daniel Yates CEO and Founder Opower Mr Arthur Hanna Energy Industry Global, Managing Director Accenture Dr Weerawat Chantanakome

Chief Executive Officer, Brunei National Energy Research Institute

Mr Joseph Marushack

President, ConocoPhilips Asia Pacific

Mr Gal Luft Co-Director, Institute for Analysis of Global Security Mrs Ow Foong Pheng

Permanent Secretary (Trade & Industry)

Mr Loh Khum Yean Chairman, EMA

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Mr Chee Hong Tat Chief Executive, EMA Mr Bernard Nee Asst Chief Executive, EMA Mr Jonathan Goh Director, EMA Ms Desiree Tung Deputy Director, EMA Ms Faith Gan Deputy Director, EMA

MATTERS DISCUSSED

The Singapore International Energy Week Welcome Dinner was hosted by Mr S.

Iswaran, Minister in the Prime Minister’s Office, Second Minister for Home Affairs and

Second Minister for Trade and Industry.

I had the opportunity to discuss a number of energy policy matters with Government

politicians and officials and industry leaders.

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SIEW: SINGAPORE ENERGY SUMMIT

Date: 28 October 2013 Venue: Marina Bay Sands Convention Centre

ATTENDEES - Conference Sessions

MATTERS DISCUSSED

Opening Keynote Address by Sheikh Bin Khalifa Al-Thani, Chief Executive Officer,

QATAR Gas

Sheikh Bin Kalifa Al-Thani provided a strategic overview of the international gas

market and the role of gas in energy security for a number of Asian countries.

He highlighted the linkages directly with Singapore, in particular the contract to

supply LNG to the new Singapore LNG terminal.

He noted that areas such as North America are experiencing significant shifts in

their energy security through local gas reserves and supplies, demand in Europe

was continuing to fall and demand was continuing to outstrip supply in Asian

markets.

He also noted that in his opinion, gas prices will remain globalised in the next

decade and more than likely continue to be linked to oil prices.

Session Two: In Conversation, Gas – the Game Changer?

Speakers included:

Mr Amos J Hochstein, Deputy Assistant Secretary for Energy Diplomacy

Bureau of Energy Resources, United States of America

Mr Hiroshi Ozaki, President Osaka Gas

Ms Meg Gentle, President Cheniere Marketing

Mr Gal Luft, Co-Director Institute for the Analysis of Global Security

(IAGS)

Each of the speakers gave an overview of their opinions on how gas is changing

energy security and underpinning economic growth.

There was extensive discussion around North America and how the supply and

demand changes have delivered incredible security and economic opportunities.

There was also optimism from some of the speakers about future export

opportunities from North America.

Mr Hiroshi Ozaki, the President of Osaka Gas, recognised the incredible increases

in demand for gas in Japan as part of the shift away from nuclear energy. The

uncertainty of future energy policy was having a significant impact on energy

prices and the need for Japan to have access to a variety of fossil fuels (including

gas).

There was also discussion on the potential for the future use of compressed natural

gas to be used more broadly in transport.

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There was brief discussion on renewable energy, although there was general

agreement that you will always need a more reliable energy source and gas has the

capacity to operate in this space.

International gas prices were generally discussed, although Mr Amos J Hochstein

from the Bureau of Energy Resources in the United States of America recognised

that it is impractical to predict where prices will be in 2023 as it will be a

completely different market, recognising the growth of the industry in the last five

years and the change expected to face the industry in the coming ten years.

Session Three: Redrawing the Energy Map

Speakers included:

Mr Suhail Mohammed Al Mazrouei, Minister of Energy, United Arab

Emirates

Mr David Pumphrey, Co-Director and Senior Fellow Energy and National

Security Program, Center for Strategic and International Studies (CSIS)

Mr Arthur Hanna, Global Energy Industry, Managing Director Accenture

Mr David Pumphrey from the Center for Strategic and International Studies

provided insight to the shifting outlook for the United States of America energy

sector. The USA is now an exporter of oil products and has new energy security

from gas reserves (shale and tight gas). He highlighted the significant changes this

has nationally in terms of investment and economic growth, but also the impacts

this has on international energy map and movement of resources (gas, oil, etc.).

Mr Suhail Mohammed Al Mazrouei, the Minister of Energy in the United Arab

Emirates gave a contrasting perspective of the UAE who was once an exporter of

gas but have now transitioned to a country who is a net importer (65-70% of gas

imported). The current gas prices have discouraged a long term commitment, with

the commitment to diversify energy sources in the short term pending longer term

market outcomes (4 nuclear power plants under construction and about 5-7% of

demand being satisfied by solar).

Session Four: The Resurgence of Fossil Fuels:

Speakers included:

Mr Alexander Bychkov Deputy Director General and Head Department of

Nuclear Energy International Atomic Energy Agency (IAEA)

Mr Joseph P. Marushack President Conoco Phillips Asia Pacific

Mr Adnan Z Amin Director-General International Renewable Energy

Agency (IRENA)

Mr Le Tuan Phong Deputy Director General General Directorate of

Energy Ministry of Industry and Trade, Vietnam

Dr Weerawat Chantanakome Chief Executive Officer Brunei National

Energy Research Institute (BNERI)

The Hon Mark McArdle, Minister for Energy and Water Supply

Queensland Government, Australia

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I presented as part of Session Four – The Resurgence of Fossil Fuels.

I provided an overview of Queensland’s breakdown of energy sources,

recognising our strong demand for cost effective coal fired electricity. I also took

the opportunity to highlight our resource rich State and that Queensland wanted to

work with our Asian partners in helping them achieve energy security to underpin

their economic futures.

There was some discussion about renewable energy as the way forward. Whilst

most people argued the cost and reliability limitations, Mr Adnan Z Amin from

the International Renewable Energy Agency strongly argued that costs would

reduce as further research and development was undertaken (e.g. cost of solar

panels).

Mr Joseph P Marushack, the President of Conoco Phillips Asia Pacific, provided

an overview of their resource producing operations and how demand for these

resources (oil and gas) is continuing to grow whilst they are reliable and cost

effective, particularly in the Asian markets.

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MEETING: AUSTRALIAN HIGH COMMISSION


ATTENDEES Ms Julie Heckscher Deputy High Commissioner, Australian High Commission

MATTERS DISCUSSED

I met with Ms Julie Heckscher, the Australian Deputy High Commissioner where we

discussed Singaporean current affairs and the relationship between Singapore and

Australia.

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MEETING: MR S. ISWARAN, MINISTER IN THE PRIME MINISTER’S

OFFICE, SECOND MINISTER FOR HOME AFFAIRS AND SECOND

MINISTER FOR TRADE AND INDUSTRY


ATTENDEES Mr S. Iswaran Minister in the Prime Minister’s Office, Second Minister for Home Affairs

and Second Minister for Trade and Industry

Ms Julie Heckscher Deputy High Commissioner, Australian High Commission

MATTERS DISCUSSED

I had the honour to meet with Mr S. Iswaran, Minister in the Prime Minister’s Office,

Second Minister for Home Affairs and Second Minister for Trade and Industry.

I took the opportunity to invite the Minister to visit Queensland when his busy schedule

permits.

We discussed the Singapore Government LNG hub project and Australian resource

projects in providing LNG into Asia.

We also took the opportunity to discuss broadly the international gas market.

I took the opportunity to clearly highlight Queensland’s competitive advantage for

resource investment:

substantial coal seam gas and potential shale gas reserves;

a stable and supportive government; and

geographic access to Asian markets.

I asked the Minister about future trade opportunities between Queensland and Singapore,

particularly around education, tourism and research and development.

I separately raised Queensland’s intent to double food production by 2040 and the greater

opportunities for Singapore as an export market for our world class produce.

We also discussed the opportunity for small to medium Australian enterprises to establish

in Singapore as a gateway into Asia.

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SITE VISIT TO NEWATER VISITOR CENTRE

Date: 29 October 2013 Venue: NEWater Visitor Centre Koh Sek Lim Road, Singapore

ATTENDEES Mr Jeffrey Stephens Assistant Manager, Public Utilities Board Mr James Khoo Public Utilities Board Ms Amanda O’Brien First Secretary, Australian High Commission

MATTERS DISCUSSED

Singapore is unique in that despite 2.4 metres of annual rainfall, there are no natural

reservoirs to capture and store all of this rainfall.

The Singapore Government has implemented a ‘Four National Taps Strategy’ to provide

water security: rainwater collected from local catchments (constructed reservoirs),

imported water (from Malaysia), NEWater and desalinated water.

NEWater is reclaimed water (recycled water), with the first facilities opening in 2002

(Bedok and Kranji). A separate pipeline network has been established to deliver to

industrial and commercial customers.

The majority (98%) of NEWater is used for non-potable industrial purposes, reducing

pressure on potable water supply.

About 2% of NEWater is blended with raw water in reservoirs which is then treated as

potable water for human consumption.

Source water for NEWater is from a deep tunnel sewerage system where water is

collected then treated at the Changi Central Water Reclamation Plant.

Currently, NEWater provides water to satisfy 30% of Singapore’s demand, expected to

grow to50% by 2060.

There are now five NEWater facility in Singapore

Demand for water will continue to grow in Singapore, particularly given the physical

expansion from 566 km2 to 714 km

2 with further reclamation likely to expand Singapore

to 760 km2 over the next 20 years.

There has been an extensive history of water recycling in Singapore, with the

Government initially commencing an experimental facility in 1974.

In the ten years preceding the opening of the Bedok and Kranji facilities there was an

extensive education and engagement strategy undertaken which included more than

100,000 scientific tests which demonstrated water quality surpassing World Health

Organisation Standards.

This education program continues today, with more than 6 million visitors through the

Bedok facility visitor centre. This includes about five groups of school children daily.

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SIEW: INTERNATIONAL ENERGY AGENCY’S (IEA) WORLD ENERGY

OUTLOOK 2013 SPECIAL REPORT ON "SOUTHEAST ASIA ENERGY

OUTLOOK” LUNCH


ATTENDEES - Conference Lunch

MATTERS DISCUSSED

Speaker: Dr Faith Birol, Chief Economist, International Energy Agency

I attended a lunch as a part of Singapore International Energy Week where Dr Birol

released the IEA Special Report: Southeast Asia Energy Outlook.

Dr Birol focused on:

An overview of the countries in Southeast Asia and how whilst geographically

related have varying levels of energy demand and security.

The increasing future demand for energy right across the region, noting demand

had increased by more than twice since 1990.

Current energy supply profiles, with an emphasis on coal continuing to provide a

cheap and reliable energy supply.

Linkages between energy security, cost effective energy supply and increased

economic performance of individual countries and the region.

A copy of the report is available at:

http://www.iea.org/publications/freepublications/publication/name,43534,en.html

http://www.iea.org/publications/freepublications/publication/name,43534,en.html

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SITE VISIT: SINGAPORE CITY GALLERY

Date: 29 October 2013 Venue: Singapore City Gallery 45 Maxwell Road, Singapore

ATTENDEES Ms Vivian Tan Manager, Corporate Division, Urban Redevelopment Authority Ms Stephanie Koh Lee Kiang

Senior Planner, Physical Planning Group, Urban Redevelopment Authority

Ms Amanda O’Brien First Secretary, Australian High Commission

MATTERS DISCUSSED

I attended the Singapore City Gallery, operated by the Urban Redevelopment Authority.

The Gallery provides a contemporary overview of the history of planning in Singapore.

This provided interesting perspectives on how Singapore has changed from a fishing port

into the world city it is today.

The Gallery provides an excellent overview of the physical transformation of Singapore,

particularly the reclamation that has changed the structure of Singapore and provided new

opportunities for economic driven urban growth (e.g. Marina Bay, central business

district, future port area, etc.).

This provided me with the context to understand how the forward thinking approach to

energy and water planning was integrated with urban planning.

The level of planning detail enabled early engagement to ensure that energy and water

infrastructure is provided in the most cost effective and integrated way.

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MEETING: SINGAPORE POWER LTD


ATTENDEES Mr Wong Kim Yin Group Chief Executive, Singapore Power Ltd Mr Brandon Chia Seng Boon

Vice President, Strategic Investments, Singapore Power

Ms Amanda O’Brien First Secretary, Australian High Commission Mr Christopher Rees Minister-Counsellor and Senior Trade Commissioner, Australian High

Commission

MATTERS DISCUSSED

I had a very productive meeting with the Group Chief Executive of Singapore Power, Mr

Wong Kim Yin.

Singapore Power as a holding company has ownership of:

SP Power Grid which manages SP PowerAssets (transmission and distribution

network in Singapore) and PowerGas Ltd

SP Ausnet (51%) – transmission, distribution and gas distribution in Victoria

SPI Australia Assets (Jemena, which has infrastructure that was previously part of

Alinta)

Mr Wong Kim Yin provided me with an overview of the electricity market regulatory

framework in Singapore. The Energy Market Authority is the regulator.

Singapore is a compact city and as such electricity infrastructure network is quite

different to Queensland, although there remain similar challenges around costs of capital

and costs of electricity for consumers.

Singapore has a peak demand of about 6,500 MW during the idle of the day, between 9

am and 4 pm. The off peak demand is about 4,000 MW.

We also discussed our approaches to electricity pricing. This included a discussion on the

broader market structure in Singapore and Australia (generation sector and retailing).

I also had the opportunity to share my thoughts on how technology will change the

industry over the next thirty years. Singapore does not have the same penetration of solar

as in Queensland, largely due to consistent cloud coverage.

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SIEW: SECOND ANNUAL GAS SUMMIT


ATTENDEES - Conference

MATTERS DISCUSSED

I was particularly interested in the Second Annual Gas Summit given its direct relevance

to the influences of the domestic and international gas markets on the Queensland

economy.

Minister S. Iswaran was the opening speaker and provided his opinions on the changing

dynamics of the international market and his desire for a more ‘liquid’ market to increase

competition through a diversity of LNG supplies which would put pressure on prices. He

also provided an update on the Singapore LNG Terminal project. The Minister also

announced an upcoming request for proposal for future contracts to supply additional

LNG to Singapore.

Mr Rajnish Goswami, Senior Vice President and Head of Gas & Power Consulting, Asia

and the Middle East at Wood Mackenzie provided a good insight to the Australian CSG

to LNG industry. He noted that Australia will be the world’s largest exported of LNG by

2018, but there are a number of project cost challenges that exist if Australia (and

Queensland) want to continue to develop new projects. He made these comments in the

context of emerging markets, particularly Africa that could drive low price opportunities.

Mr Guy Broggi, from Total, had a different perspective on the market, suggesting that

there should be sufficient gas and flexibility in the market in the short term to provide

balance, and in the medium term supply from Australia should inject more liquidity into

the market. In looking at each of the potential gas suppliers across the world, he quite

effectively summarised that it is the buyers who get to decide where the gas will come

from as it is they who will look at each of the opportunities and risks in making their

investment decisions.

There were also a number of presentations on the emerging African gas suppliers,

particularly Mozambique. Whilst initial exploration has been promising with potential of

120 trillion plus cubic feet of gas, there remains significant uncertainty about the detail of

these reserves and the ability to appropriately bring the resource to the market.

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SIEW: YOUTH IN DIALOGUE


ATTENDEES - Youth Conference

MATTERS DISCUSSED

I sat in on a session of the Singapore International Energy Week Youth Conference. This

included school presentations on energy planning and use.

The session also included a special dialogue with Minister S. Iswaran where the students

were able to directly engage with the Minister on a range of energy related topics

including types of generation now and in the future, approaches to energy efficiency,

energy consumption and renewable energy.

This session demonstrated a strong appreciation by the students of challenges we face in

the energy sector today and in the future.

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SIEW: ROUNDTABLE C: NUCLEAR GOVERNANCE


ATTENDEES - Conference Session

MATTERS DISCUSSED

I attended the Roundtable on Nuclear Governance to learn more about new generation

nuclear energy technology.

There was extensive discussion on the Fukishima disaster and the governance response

following.

There was also interesting discussion on current nuclear energy facility development

trends. Following Fukishima there was a rapid decline in construction (by about two

thirds) but market indications are that there will be increasing number of projects in the

coming years (forecasting by the International Atomic Energy Agency).

There was also brief discussion on future nuclear energy technologies, although it is

generally agreed that generation four reactors are more than likely 25 years away from

commercial operation.

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SITE VISIT: BIOPOLIS RESEARCH HUB

Date: 31 October 2013 Venue: Helios Building 11 Biopolis Way, Singapore

ATTENDEES Mr Cheong Wee Lee Assistant Director, JTC Ms Amanda O’Brien First Secretary, Australian High Commission

MATTERS DISCUSSED

I met with representatives of JTC to tour the Biopolis precinct in Singapore.

Biopolis is a research and development initiative of the Singapore Government that brings

together international expertise in a specially designed hub.

The site visit included a presentation on the Biopolis hub as well as a site tour.

I took the opportunity to learn more about the involvement of the Government in

facilitating the private sector investment in these facilities and the contribution of the

research and development to the Singaporean economy.

The Agency for Science, Technology and Research (A Star) are the lead Government

Agency in delivering the Biopolis vision. JTC undertakes property development,

including the Biopolis hub, on behalf of the Singapore Government.

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SITE VISIT: MARINA BARRAGE

Date: 1 November 2013 Venue: Marina Barrage 260 Marina Way, Singapore

ATTENDEES Mr Maurice Neo Director, Public Utilities Board Mr Geoffrey Stephens Assistant Manager, Public Utilities Board Ms Amanda O’Brien First Secretary, Australian High Commission

MATTERS DISCUSSED

The Marina Barrage is a 350 metre long dam structure across the Marina Channel to

create a water reservoir right in the central city area of Singapore.

A completely freshwater reservoir, the dam provides flood mitigation through a number

of operable crest gates and separate pumping facilities (it dams several rivers including

the Singapore, Rochor and Geylang Rivers).

The Marina Reservoir has increased the water catchment areas from half to two-thirds of

Singapore (since 2011), placing a great importance on the management of water quality

and catchments.

The Marina Barrage and Reservoir is also a key recreational facility in the city. This

emphasises the tagline of Water for All – Conserve, Value and Enjoy.

I was particularly interested in the technology and innovation of the Marina Barrage, as

well as the involvement of communities in the ability to deliver a high quality water

source right in the city centre.

The Marina Reservoir provides about 10% of Singapore’s current water demand.

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MEETING: PUBLIC UTILITIES BOARD

Date: 1 November 2013 Venue: Environment Building 40 Scotts Road, Singapore

ATTENDEES Mr Chan Yoon Kum Deputy Chief Executive, Public Utilities Board Mr Tan Kok Tian Deputy Director, Public Utilities Board Mr Maurice Neo Director, PUB Mr Geoffrey Stephens Assistant Manager, Public Utilities Board Ms Amanda O’Brien First Secretary, Australian High Commission

MATTERS DISCUSSED

I had a very informative meeting with the Deputy Chief Executive, Mr Chan Yoon Kum

about water planning and delivery in Singapore.

Singapore has undertaken long term strategic planning to increase the reliability and

security of water supply.

While Singapore receives about 2.4 metres of rainfall, with no natural reservoirs, the

Government has had to rely heavily on innovation to ensure water security.

Mr Chan Yoon Kum provided an overview of Singapore’s four supply ‘taps’:

Imported water: a pipeline from Malaysia currently satisfies half of demand

(contract through to 2061).

Local catchment water: collection and reuse of stormwater in a number of

reservoirs across Singapore.

NEWater: reclaimed water that currently satisfies about 30% of demand (mainly

industrial and commercial).

Desalination: Singapore now has two desalination plants that provide about 454

mega litres of water per day, satisfying about 10% of water demand.

I was particularly interested in the approach of PUB in research and development and

how this has continually pushed innovation in improving reliability and security of

supply, but ensuring water remained cost effective.

The three objectives of research and development are:

increase water resources;

keep costs competitive; and

manage water quality and security.

Through the National Research Foundation, PUB has been able to leverage almost half a

billion dollars in funding for research and development. Through the Research Innovation

Enterprise Council, the bulk of this funding has flowed through to research in private,

public and academic initiatives.

There are now more than 130 water related businesses and 26 water related research

institutes in Singapore

This research and development is being used to develop a technology roadmap for the

future.

We also compared approaches to water pricing. Singapore also uses a full cost recovery

model, although charges a ‘conservation tax’ to incentivise prudent and efficient use of

water.

27

I also took the opportunity to ask Mr Chan Yoon Kum about some of the public private

partnership models that were used to deliver significant water infrastructure, such as

NEWater facilities and desalination plants.

I was also very interested in how water demand and infrastructure was incorporated into

land use planning. This provided interesting comparisons for reforms we are currently

undertaking in south east Queensland.

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MEETING: ENERGY SECTOR LUNCH

Date: 1 November 2013 Venue: High Commissioner’s Residence

ATTENDEES Ms Julie Heckscher Deputy High Commissioner, Australian High Commission Ms Dominque van den Berg

President, South and East Asia, BG Group

Mr Renato Paladino President, Arch Coal Asia Pacific Mr Neil McGregor CEO, Singapore LNG Corporation Mr Alf D’Souza AM VP and Sr Regional Adviser Asia Pacific, Royal Dutch Shell Mr Peter Godfrey Head of Oil and Gas, Standard Chartered Bank Mr John Dick Partner, Herbert Smith Freehills Dr Anthony Barker General Manager, BG Group Ms Amanda O’Brien First Secretary, Australian High Commission Mr Scott Clarey Second Secretary, Australian High Commission

MATTERS DISCUSSED

The Deputy High Commissioner, Ms Julie Heckscher, hosted an energy sector lunch at

the High Commissioner’s residence.

Discussion centred on energy policy with a key focus on gas markets – Australian and

Singaporean domestic gas markets as well as the international markets.

I took the opportunity to clearly highlight Queensland’s competitive advantage for

resource investment:

substantial coal seam gas and potential shale gas reserves;

a stable and supportive government; and

geographic access to Asian markets.

29

SITE VISIT: HYFLUX TUASPRING DESALINATION PLANT

Date: 1 November 2013 Venue: Hyflux Tuaspring Desalination Plant 92 Tuas South Avenue 3, Singapore

ATTENDEES Mr Wong Lup Wai Group Executive Vice President, Hyflux Mr Wong Khai Theen Managing Director, Hyflux Mr Michael Siew Senior General Manager, Hyflux

Ms Teo Ching Ting Manager, Business Development, Hyflux

Ms Amanda O’Brien First Secretary, Australian High Commission

MATTERS DISCUSSED

I was fortunate enough to visit the new Tuaspring Desalination Plant; designed, built and

operated by Hylfux. This is Singapore’s second desalination plant and is capable of

producing 318.5 mega litres per day.

This state of the art plant incorporates its own electricity generation capacity, a 411

megawatt combined cycle gas turbine. 54 megawatts is needed to operate the plant with

the balance of electricity generated being sold back to the grid.

I also discussed with Hyflux the role of research and development in new products.

Hyflux has been able to harness this technology and innovation in a range of products

from desalination plants around the world right down to small modular water treatment

facilities with remote operation capabilities.

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MEETING: AUSTCHAM SINGAPORE

Date: 1 November 2013 Venue: The Tower Club, Republic Plaza, Singapore

ATTENDEES Mr Phillip Forrest Past President, AustCham Singapore Mr John Dick Partner, Herbert Smith Freehills Ms Annette Tilbrook Executive Director, AustCham Singapore Mr Chris Rees Senior Trad Commissioner, Australian Trade Commission Ms Amanda O’Brien First Secretary, Australian High Commission

MATTERS DISCUSSED

I met with a group of Members of AustCham.

This was an incredibly useful opportunity to reflect on my learnings from Singapore

International Energy Week and the relevance for both Queensland and Australia.

The AustCham Members were able to provide insightful perspective on business and

investment opportunities between Singapore and Australia.

report to parliament ministerial visit singapore ... · 5.10pm arrive at marina bay sands hotel,...

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