(Adds further comment)
LAUSANNE, March 29 Top executives from the
world's largest commodity trading houses discuss trends in
trading at the FT Commodities Global Summit in Lausanne,
Switzerland, this week.
For highlights from the first day:
The following are highlights:
ALAN HAYWOOD, CEO OF SUPPLY AND TRADING BP
"The context for our strategy is laid out in fundamentals
until 2035. We see energy demand increasing by about 30 percent,
half from nuclear, hydro power and renewables ... half will be
going to the power sector."
"But we see 75 percent of energy demand still coming from
oil, gas and coal. Gas demand will grow at approximately twice
the rate of oil ... on the renewable side we will focus on our
commitment to wind and Brazilian biofuels."
MARCO ALVERA, CEO, SNAM
Alvera sees emerging markets moving towards gas away from
coal due to the cleaner advantage of gas.
"A one percent switch from coal to gas, gives same benefit
on carbon dioxide, as a ten percent shift to renewables."
"In Europe, demand for gas has stabilised but production is
declining. Faced with stable demand, imports need to grow ... we
can only look east or southeast like the southern corridor.
"Europe has huge opportunities for LNG storage due to huge
depleted reserves. LNG will become hugely seasonal ... and very
distressed in the summer. Italy is a unique position because has
largest gas storage reserves so can be a hub for imports and
"In the United States, coal will be back, which potentially
in the short term will benefit gas in Europe, the price of coal
will go up."
"There's a huge potential for biomethane in transport ...
the beauty is that you can use existing infrastructure."
MARK CRANDALL, CHAIRMAN, POSTSCRIPTUM
"The switch from coal to gas is a bigger thing than any
switch to renewables."
"Batteries are about to happen. The first large scale
delivery will start in July ... Whether they will live up to the
hype is another thing. They still are not cheap enough."
"You can see the grim reaper for fossil fuels in the rear
view mirror. In Chile and Argentina ... in non-subsidised
tenders, renewables win. That's extraordinary compared to 5
years ago. Eventually it will catch up in the northern
(Reporting by Julia Payne and Gus Trompiz, editing by Louise