Doha, February 27 (QNA) – The capital Algiers is set to host the summit of the Gas Exporting Countries Forum (GECF) from Feb. 29 to Mar. 2, presenting an invaluable opportunity for member states to exchange expertise and insights.
In statements to the Qatar News Agency (QNA), experts highlighted the GECF meetings to be among the most significant gatherings that bring together decision-makers and specialized experts to discuss issues related to the natural gas industry and trade, anticipating its future, and discussing means to advance it to solidify the resource’s status as a global clean energy source. The mounting challenges facing this vital resource necessitate innovative and diverse solutions that are economically viable for both consumers and producers.
Oil and Gas Strategy Advisor Choeib Boutamine affirmed to QNA that the group faces major challenges, including controlling and setting gas prices to suit the global market, as these countries currently lack the tools to determine prices. Thus, finding an effective mechanism to control the market is necessary.
These countries, holding 69 percent of the world’s gas reserves, are unable to control the market, especially with fierce competition coming from the US, which has become the leading LNG exporter to Europe in the last few years, he added.
Technology is very important. Finding compatibility in technological exchange among these member countries is delicate, yet beneficial. For example, the US possesses highly advanced technology in natural gas extraction. This leap has made a significant difference for the US, achieving remarkable figures and capturing leading positions in global energy rankings, he continued.
Similarly, Research Director at the Algerian Petroleum Institute Mohamed Khodja explained to QNA the current challenges facing the GECF, emphasizing the importance of an understanding amongst members to produce accurate analyses of the overall energy market and the gas market in particular for beneficial outcomes, and the tense security situation in strategic areas of the world, which hinders the movement of ships, not to mention the climate change and environmental problems, and gas emissions, albeit to a lesser extent than other energy sources.
In a different context, Khodja emphasized the necessity of finding methods and ways to enable underground gas storage, as this would add greater value to gas, especially in relation to the current climate challenges, which cost countries millions of dollars annually. The vision of the forum is reflected in four strategic goals: expanding the role of natural gas in sustainable development, enhancing the fair value of natural gas, developing modern technologies in the gas industry, and strengthening the international status of the GECF as a global platform for energy affairs.
For his part, international expert in oil and gas Dr. Baghdad Mendoush told QNA that international observers have high expectations for the forum hosted by Algeria, especially seeing the harmony between the 19 countries and their aspiration for mutually beneficial partnerships. Yet, he did not deny that these gas-exporting countries might face financial difficulties, considering that the gas industry, from exploration, processing, transportation, to production, requires substantial budgets. For instance, a pipeline 3,000 km long currently costs between 4 and 5 billion dollars, and not all producing and exporting countries possess such budgets. It is, therefore, crucial to find financing sources for projects, especially in East African countries that have witnessed significant gas discoveries.
Dr. Mendoush highlighted to QNA the importance of making the forum a platform for dialogue between gas-producing and consuming countries to balance the value in quantity and price according to a win-win principle. This allows for the development of the gas industry, financing projects, and the advancement of sea and land transportation methods to achieve stability in the gas market.
The forum contributes to shaping the future of energy, advocating globally for natural gas and a platform for cooperation and dialogue, supporting the sovereign rights of member countries over their natural gas resources, and contributing to sustainable development and global energy security.
The forum also aspires to position natural gas as an essential resource for comprehensive and sustainable development, expanding its role in sustainable development economically, socially, and environmentally.
Established during the first ministerial meeting in Tehran in May 2001, the GECF was held annually with no institutional structure and official status. In December 2008, it eventually evolved into an international organization through the signing of an agreement on the functioning of the GECF and its statute at the seventh ministerial meeting in Moscow. Qatar was selected as the forum’s headquarters.
In January 2010, Russian Leonid Bokhanovsky became the GECF’s first Secretary General, a position which he assumed until 2014. He was succeeded by Iranian Mohammad Hossein Adeli, who served two terms.
This was followed by Russian Yury Sentyurin in 2018, with GECF’s current Secretary General Algerian Mohamed Hamel assuming the role in 2022.
The forum comprises 19 countries, with 12 full members and seven observers. The members of the GECF are Algeria, Egypt, Libya, Qatar, the UAE, Bolivia, Equatorial Guinea, Iran, Nigeria, Russia, Trinidad and Tobago, and Venezuela, and the observers are Iraq, Angola, Azerbaijan, Malaysia, Mozambique, Norway, Peru, and Mauritania.
The members collectively provide 44 percent of the marketed production, 52 percent of pipeline exports, and 51 percent of the global LNG exports. Russia leads the production volume, with a total of 638 billion cubic meters annually, constituting 16.57 percent of total global production in 2021, followed by Iran, with 249.6 billion cubic meters, constituting 6.48 percent, and Qatar at 205.7 billion cubic meters with 5.34 percent. (QNA)
