Mr. Kilaparti Ramakrishna, Director of the UNESCAP East and North-East Asia Office,
Distinguished Guests and Participants,
Ladies and Gentlemen,

Thank you very much for being here with us this morning and for coming all the way to Daegu to participate in the 22nd World Energy Congress and the Northeast Asia Energy Forum.

I would like to express my sincere appreciation to UNESCAP and the WEC Organizing Committee for all their hard work and dedication in jointly organizing this meaningful forum with the Ministry of Foreign Affairs of the Republic of Korea. This event is very timely, given the significant global implications of the energy situation in Northeast Asia.

Ladies and Gentlemen,

Northeast Asia, which comprises some of the world's largest energy consumers, accounts for about one third of the world's energy consumption. China has emerged as the world's largest energy consumer since 2010 and Russia, Japan, and the Republic of Korea rank among the world's top ten energy consumers.

With its rapid economic growth, the region's energy demand is projected to continue to increase. The expected increase in energy production and consumption will have environmental impacts.

In addition, the countries in the region have a high dependency on overseas fossil fuel and competition among the countries to secure stable energy supply is therefore expected to intensify.

In spite of the huge energy demand in Northeast Asia, energy trade in the region has not been actively pursued. Due to the lack of energy infrastructure, the countries in the region have been paying higher gas prices than in other regional gas markets, a phenomenon which is referred to as the 'Asia Premium.'

Furthermore, many challenges to the region's energy security have emerged in recent years, including the global economic crisis, growing concerns over nuclear safety, and increased volatility in supply arising from political instability in some energy supplying countries. The region has the urgent mission of securing a stable energy supply and minimizing the environmental impact of energy use. Indeed, this is an imperative task for the achievement of sustainable development.

What then could we consider as possible areas of cooperation from from a short-term perspective to achieve this shared goal?

First, we need to work more closely to increase intra-regional energy connectivity. Northeast Asia is home to the great energy producer and a number of great consumers. By increasing energy connectivity and facilitating energy infrastructure, we can promote intra-regional trade in the energy sector and thereby enhance energy security in the countries of the region.

The gas sector is an area where increased connectivity is most needed. Following the Fukushima nuclear accident, natural gas is expected to account for a bigger share of the energy supply in Northeast Asia. The countries in the region need to work together to establish a gas trading hub, which will reduce the price of the "Asia Premium".

According to the International Energy Agency (IEA), constraints on the development of gas markets in Asia include the region's lack of a trading hub to facilitate the exchange of natural gas. The IEA Executive Director Maria van der Hoeven emphasizes the need for a gas trading hub to facilitate the emergence of markets and prices that better reflect supply and demand.

Second, the issue of nuclear safety in the region should be addressed with a sense of urgency. We could expand the existing channel for consultations among nuclear regulatory agencies and promote networks for the exchange of information on nuclear safety.

The Fukushima accident demonstrated the urgent need for regional cooperation with regard to nuclear emergency response measures. Given that Northeast Asia is a region which is home to the highest number of nuclear power plants in the world, strengthening cooperation on nuclear safety is a task of great importance.

Finally, there is also a call for enhanced regional cooperation on renewable energy. Fossil fuels still remain the major energy source in the Northeast Asian countries. To accelerate the spread of renewable energy use in the region, financial support and technology transfer between governments need to be promoted.

Ladies and Gentlemen,

Northeast Asia today suffers from the so-called ‘Asia Paradox’ in which despite the increasing economic interdependence, the level of political and security cooperation remains at a nascent stage.

The Korean government under the leadership of President Park Geun-hye is pursuing the Northeast Asia Peace and Cooperation Initiative, which seeks to begin accumulating small but significant interactions in soft cooperative security issues such as environment, disaster relief, and nuclear safety so that they turn into habits of cooperation. Eventually these habits of cooperation can be nurtured into building of trust that will usher in an era of peaceful, cooperative, and responsible Northeast Asia.

Indeed, it is a vision that cannot be realized by the efforts of a single nation alone. There is a need for collective efforts and wisdom. If we dream alone, it is just a dream, but if we dream together, it can become a reality.

Energy security, the main theme of today’s forum, is an issue that deserves a more serious thought and consideration in a broader context of peace and cooperation in Northeast Asia. I wish you all the best in your intellectual exercise with this vision of regional peace and security in perspective.

Thank you very much.