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Algeria: GECF summit discusses gas market stability worldwide

BI Report || BusinessInsider

Published: 01:51, 3 March 2024  
Algeria: GECF summit discusses gas market stability worldwide

Photo: Collected

The 7th Gas Exporting Countries Forum (GECF) Summit, due for three days, kicked off on Thursday in Algeria where the member states discussed the joint cooperation of producing countries to ensure stability of the global gas market and ways to combat any challenges.

The summit commenced on February 29 with the assembly of gas experts (Gas Expert Group), setting the stage for the subsequent conference with the member countries' ministers on March 1.

During this meeting, the direction of the conference was solidified, paving the way for productive discussions and outcomes, a Share Biz, one of the leading financial newspapers in Bangladesh.

President Abdelmadjid Tebboune delivered the meeting’s final decision on the last day of the conference held on Saturday. Apart from representatives from the member countries, journalists from different parts of the world also joined the summit.

During the inaugural session of the summit, Algerian Minister of Energy Mohammad Arkab said that the conference of GECF held in Algeria will focus on global risks and challenges related to gas production, supply and marketing, mutual cooperation, and understanding with the member countries.

He emphasized the necessity for pragmatic measures to maintain stability in the global gas market and address the existing challenges effectively. It will also address the clean energy challenges posed by the future demand, he added.

Addressing the media, the minister said that the main objective of the conference is to build a bridge of mutual cooperation among the gas-producing countries. He also put importance on gas extraction, supply and fulfillment of commercial needs.

During the keynote presentation at the summit, it was highlighted that Algeria is poised to emerge as one of the world's leading gas-producing and supplying countries.

It is becoming an important supplier of natural gas, especially in European countries. As a result, European countries' dependence on Russian gas will decrease. In addition, the summit will strengthen investment cooperation among the member countries to increase production capacity for gas-buying countries.

On the contrary, an analysis by Algeria's Nova News said that this year's GECF conference took place against the backdrop of international and regional geopolitical instability when commercial ships were being attacked by pro-Iranian Yemen Houthi rebels on gas supply routes through the Red Sea.

As a result, Qatar, an important member of the GECF, has been forced to stop supplying LNG through the Red Sea, which will affect the markets in European countries.

The Houthi rebels began attacking the commercial ships and oil tankers in the Red Sea that have ties with Israel since mid-November.

Following the attack, the number of ships transiting through the Suez Canal, previously at 70 per day, has now halved.

In this context, the revenue collection from ships passing through the Suez Canal has decreased by 46 percent in January this year compared to the same period of last year and the issue was elaborately discussed in the GECF summit.

According to the sources, the GECF was formed with 12 member countries and the countries are Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, Mauritania and Venezuela.

Apart from the member countries, eight other countries are observers of the organisation. The countries are Angola, Azerbaijan, Iraq, Malaysia, Mozambique, Norway, Peru and the United Arab Emirates.

The GECF is an intergovernmental organization that represents the world's leading gas exporters, accounting for 70 percent of the world's proven gas reserves, 44 percent of marketed production, 47 percent of piped exports and more than half of LNG (liquefied natural gas) exports globally.

The GECF aims to advocate for natural gas as an energy source, support member states' sovereign rights over their natural gas resources, and contribute to sustainable development, and global energy security.