LNG consumption on the rise - liquified natural gas - Brief Article - Statistical Data Included

Business Asia, Nov, 2000

ASIAN CONSUMERS will increase their use of liquified natural gas (LNG) by 60 per cent in the next decade, spurring development of the region's reserves, according to the Royal Dutch/Shell Group.

Annual consumption of the fuel was about 70 million tonnes in 1999 and may reach 90 million tonnes by 2005 and 115 million tonnes in 2010, as China and India join the list of buyers. Current buyers include Japan, South Korea and Taiwan.

"Depending on the view you take on economic and political developments, gas has either a big or a phenomenal growth potential (in Asia)," Shell's head of gas and power business in Japan Chris Gunner said.

Asia's demand for gas grew by nine per cent last year, with Japan accounting for three-quarters of the region's LNG requirements.

* AUSTRALIA

The Minister for Foreign Affairs Alexander Downer has announced Australia will participate in agricultural research and development with Korea to improve the country's agricultural capabilities.

A Memorandum of Understanding has been signed between the two countries, which will see Korean scientists participates in research programs and on-the-job training activities in Australian research institutes.

Managed by the Australian Centre for International Agricultural Research (ACIAR), a statutory authority in the Foreign Affairs and Trade Portfolio, the agreement also provides for the exchange of scientific information and the joint publishing of collaborative research results in national and international journals.

* CHINA

The US State Department has stated it will waive its economic sanctions against China meant as retaliation for the country's assistance with missile-development programs in Pakistan and Iran. The waiver is set to go ahead in "consideration of China's commitment not to assist the development of (certain) ballistic missiles in any way, and to strengthen its missile-related export controls," spokesman for the US State Department Richard Boucher said.

Instead of punishing China, the US will set a two-year ban preventing Pakistan and Iran from accepting the Chinese technology exports.

* HONG KONG

In an attempt to diversify from its main power business operations, Hong Kong's power utilities company CLP Holdings Ltd has announced plans to start a telecommunications service to China.

The project, to be called China Link, will provide internet and telephone services to China through fibre optic cables wrapped around CLP's power lines between Hong Kong and Shenzhen.

CLP expects to receive Government approval for the project by the end of the year.

* INDONESIA

Indonesia's Government plans to sell a 15 per cent stake in PT Bank Mandiri, Indonesia's largest lender, though an initial share sale by the end of next year.

The size of the sale is smaller than the 25-30 per cent originally suggested by the country's top economics Minister Rizal Ramli.

Also attempting to recover some of the US$86 billion ($164.9 billion) spent on bailing out the country's banks last year, Indonesia's Bank Restructuring Agency has sold its stake in Salim Oleochemicals Group to a local group of investors for US$131 million. This latest asset sale is just one in a string of Salim assets to be sold by Indonesia's bank rescue agency.

* JAPAN

The Japanese Home Affairs Ministry has proposed a dual corporate taxation system aimed at forcing Japanese companies to pay local taxes even if they are operating in the red.

The Ministry plan is designed to collect taxes even from those businesses that are losing money, on the grounds that they all benefit from public services.

The plan involves halving the current profits-based corporate tax rate from 9.6 per cent to 4.8 per cent. The new local tax, of up to 1.6 per cent, would then be additionally levied.

For corporations who have been operating in the red for more than three years, or venture businesses that are less than five years old, the new tax plan will allow a tax deferment for up to six years.

* MALAYSIA

Telekom Malaysia is holding discussions with at least three international phone companies in an attempt to forge an alliance.

Telekom, South East Asia's second-largest telecommunications company by sales, is looking to team up with a larger phone company to keep its place amongst leading market players.

Hutchison Whampoa, France Telecom SA and Spain's Telefonica SA have all expressed interest in Telekom's cellular phone unit.

* SOUTH KOREA

Europe's biggest Chemical maker BASF AG says it will buy a 14.2 per cent stake in Hanwha Chemical Corporation for around US$106 million to secure chlorine for making polyurethane plastic used in car parts and appliances.

Under the supply agreement, Hanwha will provide BASF with chlorine in return for hydrogen chloride from BASF's Korean isocyanate production facilities. This latest purchase of 14.5 million shares in Hanwha will make BASF the second-largest shareholder in the Korean company.