Page 11 - GLNG Week 47 2020

GLNG COMMENTARY GLNG

GECF members hint at

OPEC-style supply pact

Russia’s new energy minister, Nikolay Shulginov, has urged

members of the Gas Exporting Countries’ Forum to “deepen”

their co-ordination

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

Russia’s new Energy
Minister, Nikolay
Shulginov

Week 47 27•November•2020 www. NEWSBASE .com P11