2023-10-11 07:58:44
ALGIERS – The Gas Exporting Countries Forum (GECF) warned, at the end of its 25th Ministerial Meeting, held Tuesday in Malabo (Equatorial Guinea), once morest “ill-advised” calls to stop investment in natural gas, highlighting the importance of this clean resource for the future of the energy landscape.
The Forum estimated that stopping investment in this sector would lead to “a decrease in supply, an excessive rise in prices and a potential return to coal, as happened in 2022, undermining emissions reduction targets “, according to the final communiqué of the meeting, which saw the participation of the Minister of Energy and Mines, Mohamed Arkab.
Participants at the Malabo meeting highlighted the “essential” role of investments in maintaining the stability of natural gas markets, stressing “the need to create an environment that encourages unrestricted investment, while strengthening transcontinental financial cooperation in this matter.”
The GECF also advocated for equitable access to all technologies related to the exploration, extraction and exploitation of natural gas.
Regarding recent developments in the gas market, the Ministerial Meeting noted with “satisfaction” the constant growth in demand for natural gas and the increase in the number of countries importing liquefied gas.
Although prices have fallen significantly from last summer’s levels, with a decrease in volatility, “gas markets will, however, remain tight if the next winter is colder than usual in the northern hemisphere.” , indicates the final press release.
Participants stressed that in the medium term, market tension will begin to ease following 2025 with the launch of the majority of new liquefied natural gas projects, particularly those in member countries.
The final communiqué took note of the updated version of the GECF report on global gas forecasts for 2050, forecasting a constant increase in primary energy consumption over the next three decades driven by increase in the world population and the doubling of the size of the world economy by 2050.
According to these forecasts, natural gas consumption will increase by 36% and the contribution of this resource to the global energy mix will increase from 23% currently to 26% by 2050.
Furthermore, participants in the meeting welcomed the progress recorded regarding the Gas Research Institute project, following the ratification of the headquarters agreement on July 29, 2023 in Algiers.
They also welcomed the progress recorded by Algeria in the ongoing preparations for the 7th Summit of Heads of State and Government of the Forum of Gas Exporting Countries, scheduled for Algiers on March 2, 2024.
The Ministerial Meeting finally welcomed the accession of Mauritania to the Forum as a new member.
The next Ministerial Meeting will take place in Isfahan (Iran) in the last quarter of 2024.
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