Will GECF play role of “Gas OPEC”?

Oil&Gas Materials 10 January 2020 18:20 (UTC +04:00)
Will GECF play role of “Gas OPEC”?

BAKU, Azerbaijan, Jan.10

By Leman Zeynalova – Trend:

The Gas Exporting Countries Forum (GECF) is the strong belief that gas is a destination fuel, which is here to stay, said GECF Secretary General Yury Sentyurin, Trend reports.

Gas, can play a major role in achieving the UN's sustainable development goals and the carbon emissions targets of the Paris Agreement, he told S&P Global Platts.

"We must, therefore, take advantage of this opportunity to continue promoting the use of gas and seek possibilities to reach markets deprived of access to energy," he said.

As for the possibility of GECF’s playing a role of “Gas OPEC”, he said the GECF has no intention at all to jointly reduce gas/LNG production to balance the market when prices are low.

"Technically this is not always possible. Instead, the gas market tended to return to balance by itself, a reference to the "boom and bust" nature of the market and the need for significant investment in new projects. Gas markets are cyclical and experience periods of high and low spot prices due to the time and capital-intensive nature of projects in the industry," he said.

It is important to highlight that although GECF is an intergovernmental organization of gas exporting countries, somewhat similar to OPEC, our mission and vision as an organization are completely different, Sentyurin explained.

"We continue to vigorously support and promote cooperation among our member countries, engage in dialog between gas producers and consumers and champion the cause to promote the use of gas as a destination fuel," Sentyurin said.

The Gas Exporting Countries Forum (GECF) is an international governmental organization which provides the framework for exchanging experience and information among member countries.

The member countries of the Forum are: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, United Arab Emirates and Venezuela. Azerbaijan, Iraq, Norway, Kazakhstan, Oman, Peru and Angola have the status of observer members.


Follow the author on Twitter: @Lyaman_Zeyn