2009-2012 Malaysian Triennium

1.         Introduction

The Malaysian triennium begins at a very challenging time when the world is experiencing an unprecedented financial and economic crisis which impacts the energy industry, including natural gas. Like oil, natural gas is experiencing demand contractions in all major consuming regions of North America, Europe and Asia stemming from the global economic downturn. The extreme price patterns contributed by demand destruction, make investment decisions difficult and undermine sustainable economic growth. It is uncertain how long and deep the recession will be but the natural gas industry is   a long-term business and will remain as the fuel for a sustainable future.

2.         The 2009 - 2012 Theme and Strategic Guidelines

Against this backdrop, the theme for the Malaysian Presidency is:

            “Gas: Sustaining Future Global Growth”

Gas plays a vital role in meeting the world’s expanding energy needs. As the world economy recovers and expands, the need for clean, efficient energy will continue to grow. In an increasingly carbon constrained world, as global warming translates into policy, gas has significant advantages over other fossil fuels. Gas remains as a key element in the fuel mix to drive future global growth and gas for power generation is by far the largest growth sector.   

Growth needs to be sustainable. Global energy needs continue to make increasing demands on gas supply. Future growth of the industry must be sustainable which means taking account of the economic, environmental and social aspects, so that welfare can continue to improve throughout society. Sustainable growth aims to improve conditions in the present without compromising the ability of future generations to meet their own needs. This entails not only the enhanced availability of gas, through the development and implementation of gas technology but also the critical human resources needed to ensure that all the critical elements are operating at the optimum level throughout the value chain.

In support of the theme and to reinforce IGU’s role in the gas industry, we have identified four strategic guidelines to sustain future global growth.  

These are:
            i.          Enhance the role of gas for sustainable development and balancing the needs of all stakeholders
            ii.          Improve availability of gas and access to markets
            iii.         Maximise efficiency throughout the expanding gas value chain
            iv.         Ensure adequate human capacity to enable growth and integrity of the industry

These principles provide the framework upon which we have developed the technical programme and initiated special projects for the triennium.

3.         Triennial Work Programme

The detailed work programme in this document provides the objectives and scope of all the studies and projects that will be undertaken during the course of the triennium. These activities will be executed by the Programme Committees, Working Committees and Task Forces, whose participants are drawn from the IGU membership. The programme has been put together through a process of highly constructive discussions with the outgoing committee authorities as well as through brainstorming sessions with the incoming committee authorities, subject matter experts and IGU management. The objective is to ensure continuity of the work done from the previous Argentine triennium coupled with the need to ensure currency and relevance of the studies to the strategic guidelines and current environment. We would like to acknowledge the support and contributions of the Argentine Presidency with whom we have always maintained a constructive engagement and whose inputs have been most valuable in ensuring a smooth transition between the triennia.

Two important concerns have emerged in developing our plans for the triennium. They are the human resource challenge and the influence of geopolitics in the evolution of the gas industry. We believe these areas will have serious implications on the future sustainability of the industry and therefore merit further consideration. We have therefore captured these concerns by initiating three special projects during the triennium to study the issues, impact and challenges. Another concern is climate change, the seriousness of which has captured the attention of policy    makers, international organisations and NGOs the world over. While the world will continue to depend on fossil fuel for most of the energy needs in the foreseeable future, we believe natural gas has an important role to play in mitigating climate change. Therefore, the IGU Presidency and Secretariat, together with the Sustainability Committee (PGC A) will step up efforts in important forums such as the UNFCCC (COP) meetings to increase our visibility and promote the use of gas.

Likewise, in achieving our work programme, we will continue the collaborative efforts with other international organisations such as International Energy Agency (IEA), International Energy Forum (IEF), World Petroleum Council (WPC), World Energy Council (WEC) and other similar organisations.

4.         Changes to the Organisation Structure

The basic structure of the Programme Committees (PGCs) and Working Committees (WOCs) has remained largely unchanged from the previous triennium. However, the scope of work of some of these committees have been streamlined and defined to ensure greater clarity. In addition, effective from the Malaysian triennium, a new Programme Committee (PGC E) has been introduced named “Marketing”. The formation of this committee provides formal recognition to the former Intergas Marketing (renamed IGU Gas Marketing or IGM) into the mainstream     of IGU. The role of PGC E is to identify and develop ideas, tools and products for successful promotion and sale of natural gas.

After the successful organisation of the IGU Research Conference (IGRC) in Paris in October 2008 under the revised approach and new organisational structure, the successful formula will continue to be adopted in the current triennium.

5.         Conclusion

No one is isolated from today’s global challenges. In times of great adversity and unprecedented challenges, there are also opportunities. IGU will use these opportunities to further promote the technical and economic progress of the gas industry.

Ho Sook Wah
Chairman
IGU Coordination Committee

 2009-2012 Triennial Work Programme
 2009-2012 Triennial Work Programme in Brief