Linking gas prices with oil prices topped the agenda of the tenth ministerial meeting of the gas exporting countries forum (GECF) held in Oran, Algeria, on the sidelines of the LNG 16 conference which started yesterday instead of Sunday 18th, due to the volcanic eruption in Iceland.
Ten member countries attended the event including energy ministers of Qatar, Russia, Iran, and visa energy minister of Venezuela, while Egypt, Libya, Guinea, Equator, Nigeria, Trinidad and Tobago were presented in the event with delegates.
“Linking gas prices with the oil’s one was the toughest point discussed during the meeting,” said Chakib Khelil, Algerian Energy Minister in a press conference held at the convention centre conference in Oran. “We have a long term vision on this issue,” he added.
Russian Energy Minister, Sergi Shmatko, said that all ministers support the idea of linking gas prices with that of oil. “We strongly support the idea and we work to realise it,” he revealed.
Linking gas prices with oil prices exists for long term contracts, but the absence of linkage in the spot market led to the collapse of gas prices in spot market.
In his inauguration speech, Chakib Khelil said that gas demand decreased noticeably in 2008-2009, where he noted that the expectations for the next five years are not “positive”.
Khelil urged his counterparts to remain vigilant as the demand will not remain “stable”. “The increase of non-traditional gas production from the USA and Australia will affect the demand,” explained Khelil.
Energy ministers of Yemen, Angola, Holland and Norway were also present in the meeting, but as observers.
Yemen and Angola said that expressed their intention to join the forum of the gas exporters’ countries.
The current members of the GECF controls 73% of the world have proven reserves, and 42% of the world’s total production.
