Wednesday 3 July 2013

Energy exporters pledge to increase global natural gas share

Leaders of the world's largest gas exporting countries (pictured) have pledged to foster the growth of natural gas usage and increase its share in the world's primary energy mix.

They gathered in Moscow earlier this week for the second summit of Gas Exporting Countries Forum (GECF), which was set up with the objective of strengthening the collaboration among member countries and building a dialogue between gas producers and consumers.

Russian President Vladimir Putin hosted the event and gave an overview of the gas market and outlined the challenges and the Heads of States and Governments exchanged views on the recent developments in the international gas market.

Leaders from countries including Egypt, Iran, Qatar, UAE and Iraq laid out the Moscow Declaration, which sets the roadmap for the GECF member countries to collaborate in the development and use of their natural gas resources with all stakeholders in the sector.

The news follows the IEA's forecast last month that natural gas growth for power generation will slow in the next five years.

Some of the aims mentioned in the Declaration are to “preserve and enhance principles of international gas trade including risk sharing mechanisms... uphold the fundamental role of long-term gas supply contracts in financing large-scale gas projects along the value chain and in providing mutually acceptable solutions for security of demand and supply... foster the consistent growth of natural gas usage as an abundant non-renewable source of energy to increase its share in the world primary energy mix”.

Other member countries of the Forum are Algeria, Bolivia, Equatorial Guinea, Libya, Nigeria, Oman, Russia, Trinidad and Tobago and Venezuela. Iraq, the Netherlands and Norway have the status of “Observer Members”. The natural gas reserves of the Member Countries add up to 62% of the world's proven gas deposits.