Asia's Cooperation on Energy : The Issues Facing Japan

No.95
November 2000
Senior Fellow Reiji Takeishi

1. Energy Supply and Demand Structures in Asia
   Patterns of energy consumption in Asian countries can be categorized into three types, based on the country whose consumption pattern they most resemble: (1) Japanese style, (2) Chinese style, and (3) that of other Asian countries. The key energy-related issue in Asia is the rapidly increasing energy consumption in China; it is necessary to investigate the possibility for stabilizing China's energy consumption patterns and making it follow the same direction as (3), e.g. other Asian countries, excluding Japan
2. Changes in the Energy-Consumption Structure in China
   In regard to energy supply, China is more than 80 percent dependent on coal. In order to participate in the WTO, China has made clear steps toward reducing coal subsidies, and the supply of coal in China is decreasing remarkably. On the other hand, oil imports are rising dramatically.
3. Physical Distribution Problems (sea lanes such as the Strait of Malacca)
   The Strait of Malacca and the Strait of Singapore, among others, are critical points for transporting energy into Asia; to avoid congestion at these chokepoints, preparing interregional energy grids such as gas pipeline networks and power lines are considered to be very effective.
4. The Importance of Energy Grids (comparison with the European situation)
   Following the installation of a gas grid in Europe, competition for gas supply has risen and the price of gas has fallen. Thus, the creation of energy grids is assumed to be conducive for stabilizing the supply of energy.
5. Progress of Energy Grid Projects in Asia
   Within the ASEAN framework, some energy grid projects have already been accomplished; these energy networks are seeing benefits from the security of supply and a strengthening of mutual cooperation.
   
6. Proposals
   Japan should support the progress of ASEAN's energy grid projects as well as coordinate with neighboring countries, such as Russia, China, and the Republic of Korea in order to expedite gas and power grid projects. In particular, Japan should focus on the Senkaku Islands area-where territorial demarcation has not been admitted-as an optimal location for exploration and development.

More Informations

• Japanese
• Full text is not available in English for this report.
  The original Japanese full text is PDF here [1.31 MB].
  Please let us know the serial number of this report (095) to submit a request for translation.