APEC Oil and Gas Security Exercise: a Regional Capacity Building
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APEC Oil and Gas Security Exercise: A Regional Capacity Building Melbourne, Australia 29-31 March 2017 APEC Energy Working Group October 2017 APEC Oil and Gas Security Exercises: A Regional Capacity Building Melbourne, Australia 29-31 March 2017 APEC Energy Working Group October 2017 APEC Oil and Gas Security Initiative: EWG 01 2016S P R O D U C E D B Y : Asia Pacific Energy Research Centre (APERC) Institute of Energy Economics, Japan Inui Building, Kachidoki 11F, 1-13-1 Kachidoki Chuo-ku, Tokyo 104-0054 Japan Tel: (813) 5144-8551 Fax: (813) 5144-8555 E-mail: [email protected] (administration) Website: http://aperc.ieej.or.jp/ FOR: Asia-Pacific Economic Cooperation Secretariat 35 Heng MuiKeng Terrace, Singapore 119616 Tel: (65) 68 919 600 Fax: (65) 68 919 690 E-mail: [email protected] Website: http://www.apec.org ©2017 APEC Secretariat APEC# 217-RE-01.18 ii Oil and Gas Security Exercise in Australia PREFACE The Asia Pacific Energy Research Centre (APERC) has been conducting the Oil and Gas Exercise since 2013 following the APEC Energy Ministers’ directive (10th APEC Energy Ministerial Meeting) in St. Petersburg in June 2012 to pursue regional cooperation on supply emergency response through workshops and exercises. Such directive intends to aid APEC economies to improve policy response and measures in dealing with or resolving any magnitude of energy supply disruption based on their respective domestic conditions. APERC held the first two oil and gas security exercises (OGSE) in 2013 – the Joint Southeast Asian Exercise in Bangkok, Thailand, and the Indonesian Exercise. In November 2015, APERC officially launched the Oil and Gas Security Initiative (OGSI) expanding the program related to supply security consisting of three pillars, one of which is the OGSE. The Philippines hosted the 3rd OGSE and the first under the OGSI in December 2015. This report presents the outcome of the OGSE in Australia (the 4th exercise) jointly organised by APERC and the Australian government through the Department of the Environment and Energy in Melbourne on 29-31 March 2017. The exercise was a regional capacity building with participation from other APEC economies – Indonesia, the Philippines and Thailand. The first day was devoted for capacity building workshop providing an overview of the global oil and natural gas markets, supply resilience in the APEC region, and the Australian energy policy and emergency response framework. The second day was the emergency exercise with hypothetical supply disruption scenarios for both oil and natural gas. On oil, a global supply disruption scenario was formulated, while a separate gas scenario was produced for each of the participating economies taking into account their distinctive domestic gas situations. Seven invited experts formed the Expert Review Team to assess, comment and provide recommendations to the participating economies’ responses on the presented emergency scenarios for oil and natural gas. The Team was composed of the International Energy Agency (IEA); the Economic Research Institute for ASEAN and East Asia (ERIA); the ASEAN Centre for Energy (ACE); the Institute of Energy Economics, Japan (IEEJ), the Ministry of Economy, Trade and Industry (METI) of Japan; the Department of Energy of the United States; and the Department of the Environment and Energy of Australia. The Team’s comments and recommendations are also included in this report. iii Oil and Gas Security Exercise in Australia APERC will continue to improve the conduct of OGSE based on the experiences from the past exercises to make the activity more sensible to the needs of the economies. APERC is committed to carry on this activity as long as the Energy Ministers and the APEC economies still see the value of this program in improving resilience and mitigating the impact of any supply emergency. APEC economies are also encouraged to hold (or continue to hold) their own supply emergency exercises to further strengthen their policies, institutional arrangements and mechanisms, and response measures on supply disruption. APERC wishes to thank all the participants and delegates who engaged in this exercise. Special thanks go to the Department of the Environment and Energy of Australian Government for co-organising this event. iv Oil and Gas Security Exercise in Australia TABLE OF CONTENTS Preface ................................................................................................................................................................. ii Abbreviations and Acronyms ......................................................................................................................... vi List of Figures and Tables ............................................................................................................................... ix Executive Summary ......................................................................................................................................... xi Part 1 – Capacity Building Workshop ............................................................................................................ 1 1. Background Information ............................................................................................................................ 2 1.1. Australia’s Oil Situation ............................................................................................................. 3 1.2. Australia’s Gas Situation ........................................................................................................... 6 2. Summary of the Capacity Building Workshop ...................................................................................... 11 2.1. Australian Energy Policy .......................................................................................................... 11 2.2. Energy Reserves ........................................................................................................................ 11 2.3. Energy Exports ......................................................................................................................... 12 2.4. Electricity and Gas System ...................................................................................................... 13 2.5. Australian Policy and Governance Framework ................................................................... 15 2.6. Energy Security Policy .............................................................................................................. 17 2.7. Regional and Global Energy Security .................................................................................... 18 2.8. Australia’s Oil Emergency Response Framework ............................................................... 19 2.9. Australia’s Gas Emergency Response Framework .............................................................. 21 2.10. Reporting and Data/Information .......................................................................................... 24 2.11. Key Themes and Lessons from Australia’s Approach........................................................ 25 2.12. External Presentations from Experts .................................................................................... 26 Part 2 – Background Information ................................................................................................................ 28 1. Indonesia ..................................................................................................................................................... 29 1.1. Background Information ......................................................................................................... 29 1.2. Oil Situation ............................................................................................................................... 30 1.3. Gas Situation .............................................................................................................................. 32 1.4. Institutional Structure and Emergency Policies/Measures ................................................ 34 2. The Philippines .......................................................................................................................................... 37 2.1. Background Information ......................................................................................................... 37 2.2. Oil Situation .............................................................................................................................. 38 2.3. Gas Situation ............................................................................................................................ 40 2.4. Institutional Structure and Emergency Policies/Measures ................................................ 41 v Oil and Gas Security Exercise in Australia 3. Thailand ....................................................................................................................................................... 43 3.1. Background Information ......................................................................................................... 43 3.2. Oil Situation .............................................................................................................................. 44 3.3. Gas Situation ............................................................................................................................ 46 3.4. Institutional Structure and Emergency Policies/Measures ...............................................