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AfrOil COMMENTARY AfrOil

(Photo: Mozambique LNG)

GECF members hint at

OPEC-style supply pact

Nigeria’s Timipre Sylva suggests that GECF could become a “balancing factor” in global gas markets

RUSSIA’S new energy minister, Nikolay Shulg- ministerial online meeting on November 11-12.
inov, has urged members of the Gas Exporting While the talks did not end with a public plan
WHAT: Countries’ Forum (GECF) to “deepen” their to co-ordinate output cuts, many members
Russia’s new energy co-ordination, amid rising calls for gas suppliers stressed the importance of rebalancing the
minister has urged GECF to consider joint action to support prices. market.
members to “deepen” Unlike their counterparts in OPEC, GECF’s Shulginov, who replaced long-serving Rus-
their co-ordination. 11 members have never imposed co-ordinated sian Energy Minister Alexander Novak on
cuts to supply. But there are growing concerns November 9, said in opening comments at the
WHY: among leading gas producers that such a step meeting that he intended to attach the “utmost
Closer co-operation may may be necessary to rebalance the market more importance” to co-operation in the GECF.
be needed to rebalance quickly. “It is up to us to jointly come up with solu-
global gas markets. Russia, the world’s biggest gas supplier, has tions that will further improve the efficiency
shunned such a move during previous down- of our organisation in order to strengthen its
WHAT NEXT: turns. But with the International Energy Agency position globally,” Shulginov said. “Co-opera-
Qatar is likely to oppose (IEA) forecasting an unprecedented 3% decline tion in the GECF is among the priorities of Rus-
OPEC-style joint action.
in global gas demand this year, it might be sian foreign energy policy. We hope that in the
rethinking its position. coming years, the GECF will continue to play
GECF, whose members also include major an important role in shaping new trends in the
gas producers Qatar and Iran, held its 22nd development of the gas industry.”

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