I REFER to Ms Choo Wai Chan's letter,
'Alternative fuels won't fully replace fossil ones' (ST, Sept 1).
Complementing PNG (piped natural gas) with LNG (liquefied natural
gas) is not that much of a diversification. It is the path of least
resistance since the existing power plants do not need to be
replaced.
It is not a diversification because it is the same fossil fuel,
just more expensive, due to the need to freeze it before shipping
it and also having to re-gasify it before it can be used. The cost
of the LNG infrastructure - terminal and tankers - is in the
billion-dollar range, and guess who foots the bill eventually?
Besides, we still have to contend with resource depletion. With
LNG, we may 'run away' from local resource depletion in Malaysia
and Indonesia but nobody can run away from global depletion. The
gamble the Government is taking is that global depletion arrives
later than local depletion. As for global depletion, the figure of
40 years of reserves left is often quoted but that is misleading.
It implies that problems will only occur in the far future but that
may not be true. The problem is not running out, the problem is
hitting the halfway point, known as Peak Oil (and Peak Gas), where
global production starts to decline and can no longer keep up with
demand, causing prices to rise dramatically. According to geologist
Dr Colin Campbell of the Association for the Study of Peak Oil and
Gas, the peak date is due to arrive by 2010. That is two years
before Singapore's LNG terminal is even scheduled to start
operations.
The Singapore Government deserves credit for pushing ahead with
the LNG initiative, though it is hardly an original idea - many
countries are also setting up LNG terminals. America is planning 40
terminals. Even Mexico, home to the world's second largest
oilfield, has started importing LNG. This tells us something about
the sheer level of demand that will be coming up for LNG in the
coming years. Singapore is joining a race that has already
started.
LNG will be traded just like crude oil is today. Qatar is
setting up an energy trading exchange. The natural gas will, quite
naturally, go to the highest bidders. What is quite certain is, at
the end point, it is not going to get any cheaper. There is nothing
cheap about LNG. It is at best an interim measure while society
considers other solutions. Although the other alternatives for
base-load electrical power - nuclear, coal, geothermal, ocean tidal
and thermal - are fraught with all kinds of environmental,
political and technical risks, they need to be considered well
before the global peak date arrives. While making preparations for
the LNG terminal, the Government should also take a close look into
alternative energy sources - while there is still time.
Low Ee Mien