China's Energy Development and its Global Implications

30 October 2013, 1 - 5 PM CET

TUSIAD Avenue des Gaulois, 13, Brussels 1040

China's "arrival" as one of the leading stakeholders in the international energy economy has been a prominent feature of the changing landscape in global energy markets since the end of the Cold War. China has transformed from being a primary destination for FDI to likewise becoming a major source of outward investment for the global energy markets. Underpinned by multiple years of tumultuous growth and rapid development, China's thirst for a secure and affordable supply of imported energy has global implications. The energy trade between China and its supply partners has resulted in major oil-producing countries in Asia and Africa restructuring their export markets in favor of East to West. Chinese energy corporations are now rubbing shoulders with most of the world's leading oil and gas multinationals in many challenging upstream environments, often outbidding the IOCs in lucrative projects with host governments. China is likewise raising its voice within the circles of global energy governance, where talk of reform of organizations such as the Paris-based IEA (to include China) is now on the agenda.

While China's energy ascendancy is often referred to as one of the new "challenges" we face in the context of global energy, how much do we really know about Beijing's central energy security priorities? Investment and the drive for access to oil and gas reserves appear to be motivating Beijing's energy strategy. That said, we know relatively little about the real intentions of Chinese energy corporations, their investment strategies in key markets, efforts to court partners in third countries for joint venture investment projects, etc.

On October 30 Victor Gao addressed members and guests of the Brussels Energy Club, enlightening us on the above-mentioned issues. While speaking in a personal capacity and off the record, he evaluated the global implications of China's energy development. He further assessed the impact this may have for prospects of cooperation between Chinese energy companies and international partners, taking into account both China's need to secure imported sources of energy as well as to develop its own resource base in future years.

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