TEXT: DALEY 4/1 REMARKS AT LIQUIFIED NATURAL GAS ROUNDTABLE
(Natural gas important for cleaner environment)Washington -- China's decision to import liquified natural gas (LNG) is critically important to achieving a cleaner environment, increasing economic growth, and diversifying energy supplies, according to Secretary of Commerce William Daley.
Daley noted that the Asia-Pacific Economic Cooperation (APEC) forum has also developed recommendations for natural gas infrastructure initiatives.
"Hundreds of billions of dollars will be needed over the next 15 years to meet projected energy demand for APEC economies," he said. "The initiative was developed with the help of the business sector, and we believe they have put forth good ideas."
Daley stressed the importance of transparency and fairness in the selection process for international partners.
"As China moves forward with your planning for LNG facilities, I urge you to establish an open, transparent, and non-discriminatory process for the selection of international partners," he said. "Clear rules of the game will encourage greater competition. And they will permit the proposals of American and other international companies to be as responsive to China's needs as possible."
Following is the Commerce Department text of Daley's remarks, as prepared for delivery:
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Remarks by
U.S. Secretary of Commerce William M. Daley
Liquified Natural Gas Roundtable
April 1, 1999
Guangdong, ChinaWe are here to discuss the great opportunities from China's decision to import liquefied natural gas ... and your plans for the LNG facilities to be built here in Guangdong.
I believe both the American government and our private sector can make substantial contributions to your efforts. We want to show our support, learn more about your plans, and to discuss how we can work together.
I think the decision of the Chinese Government to develop a natural gas market is critically important to helping this country achieve a cleaner environment. And I think it will have a positive impact on future economic growth and the diversification of energy supplies.
Globally, the use of natural gas has been increasing at a rapid pace, because it is cost effective and it is clean. It makes up about 23 percent of the world's primary energy mix -- but here in China it is only 2 percent.
I know China has aggressive plans to develop its own natural gas resources. But for China to realize the full economic benefits, you will need to supplement these efforts, by importing natural gas as LNG.
You will not be alone in this endeavor. As you know, the Asia-Pacific Economic Cooperation has developed recommendations for natural gas infrastructure initiatives. Hundreds of billions of dollars will be needed over the next 15 years to meet projected energy demand for APEC economies. The initiative was developed with the help of the business sector, and we believe they have put forth good ideas.
I can report today that, in a response to a request from the Chinese Government, the U.S. Government is prepared to send a team of natural gas policy experts to China. The team will discuss legal, regulatory, and other issues of mutual interest as Chinese authorities formulate a national policy on natural gas. Such an inter-agency team will consist of representatives from the Departments of Commerce, Energy, Interior, and other federal agencies. We will be pleased to share the wide experience that we have gained in our country.
This important issue will also be on the agenda of the next meeting of the U.S.- China Oil and Gas Industry Forum.
As China moves forward with your planning for LNG facilities, I urge you to establish an open, transparent, and non-discriminatory process for the selection of international partners. Clear rules of the game will encourage greater competition. And they will permit the proposals of American and other international companies to be as responsive to China's needs as possible.
I and my American colleagues are very interested in better understanding your thinking on your LNG facilities. This, at both the government and private sector level, will allow us to form policy suggestions and project proposals that are responsive to your requirements.
Obviously, I am hopeful such responsiveness will mean substantial U.S. company participation as China moves forward. Of course, this in turn could contribute to real progress in bringing our trade into balance.
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