Page 4 - FSUOGM Week 46

FSUOGM COMMENTARY FSUOGM

GECF members hint at OPEC-

style supply pact

There are growing concerns among leading gas producers that co-ordinated

cuts to supply may be necesary to rebalance the market

GLOBAL RUSSIA’S new energy minister, Nikolay Shulg- importance” to co-operation in the GECF.
inov, has urged members of the Gas Exporting “It is up to us to jointly come up with solutions
WHAT: Countries’ Forum (GECF) to “deepen” their that will further improve the efficiency of our
The Gas Exporting co-ordination, amid rising calls for gas suppliers organisation in order to strengthen its position
Countries' Forum held to consider joint action to support prices. globally,” Shulginov said. “Co-operation in the
talks on November 11-12. Unlike their counterparts in OPEC, GECF’s GECF is among the priorities of Russian foreign
11 members have never imposed co-ordinated energy policy. We hope that in the coming years,
WHY: cuts to supply. But there are growing concerns the GECF will continue to play an important role
A number of members among leading gas producers that such a step in shaping new trends in the development of the
called for closer co- may be necessary to rebalance the market more gas industry.”
operation in managing quickly. Shulginov said more efficient and “active
the market. Russia, the world’s biggest gas supplier, has actions” would be needed to overcome chal-
shunned such a move during previous down- lenges in the current market. He called for mem-
WHAT NEXT: turns. But with the International Energy Agency bers to make proposals on “new mechanisms of
While certain members (IEA) forecasting an unprecedented 3% decline co-operation” before the next heads of state sum-
may favour OPEC-fashion in global gas demand this year, it might be mit of GECF members, which will take place in
co-ordination of supply, rethinking its position. Qatar in November 2021.
Qatar is likely to block GECF, whose members also include major
the move. gas producers Qatar and Iran, held its 22nd Gas OPEC?
ministerial online meeting on November 11-12. GECF was only founded in 2001, some five
While the talks did not end with a public plan to decades after OPEC’s launch in 1960. Its full
co-ordinate output cuts, many members stressed members are Algeria, Bolivia, Egypt, Equatorial
the importance of rebalancing the market. Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trin-
Shulginov, who replaced long-serving Rus- idad and Tobago and Venezuela, while Angola,
sian Energy Minister Alexander Novak on Azerbaijan, Iraq, Kazakhstan, Malaysia, Norway,
November 9, said in opening comments at the Oman, Perua and the UAE have observer status.
meeting that he intended to attach the “utmost The group has traditionally lacked its oil

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