Qatar will host the 6th Gas Exporting Countries Forum (GECF) tomorrow — the second time it will do so in Doha. The first forum was held in November 2011.
HE former Minister of Energy and Industry Dr Mohamed bin Saleh al-Sada told Qatar News Agency (QNA) that Qatar is an obvious choice to hold this forum as it is the world’s capital of natural gas.
It has a long history, extensive experience and great successes in the field of the liquefied natural gas industry and it is still the leader of its production and export, in addition to hosting the GECF headquarters.
Headquartered in Doha, the forum is an intergovernmental organisation that provides a framework for exchanging knowledge, increasing the level of co-ordination, and enhancing co-operation among member states.
It also seeks to build a mechanism for effective dialogue between gas producers and consumers for the stability and security of supply and demand in global natural gas markets and to protect the interests of gas exporters similar to the protection and support that the coal and oil industry receives from multiple parties, which necessitates countries to work seriously to achieve these interests without negatively affecting the interests of gas consumers.
The Gas Exporting Countries Forum includes 11 member states, namely Qatar, Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Russia, Trinidad and Tobago and Venezuela, in addition to seven observer countries, including Angola, Azerbaijan, Iraq, Malaysia, Norway, Peru and the UAE.
In a statement to QNA, Dr al-Sada said Qatar’s ambitions in the gas industry were great, and its plans for production and export expansions were proceeding in full swing, raising the status of the state and increases its export capacity to nearly 60%.
Certainly, the preferential advantages of natural gas as clean energy, in addition to the thermal and environmental advantages it enjoys, have led to its increasing use in recent years in terms of electricity generation, petrochemical and mineral industries, domestic consumption and others, that its global trade reaches about 388mn tonnes annually, compared to about 367mn tonnes in 2020 due to the increase in global demand.
The member states of the Forum have 70% of the world’s gas reserves, and consume about 27% of it, knowing that Qatar’s production capacity is 77mn tonnes annually, and will reach 126mn tonnes annually in 2027.
These figures highlight the role of liquefied gas in the global economy, which requires a significant increase in the volume of capital investments in all stages of its production, processing and export, and a fundamental change in the nature of contracts governing its sale and purchase, which also requires strengthening the long-term strategic partnership relations between all parties related to these stages.
In this context, Dr al-Sada says that gas is a strategic commodity, and the nature of its processing, production and export requires a huge long-term investment, and accordingly it is better that sales contracts also be long-term and at least medium-term, to ensure the flow of gas to the importer in a smooth and direct way that meet the interest of both the producer and the consumer.
He points out that Qatar had all kinds of contracts and managed them in a successful manner, and it always works to align its interests with the needs of the other party.
Over the past decade, global consumption of natural gas has grown at an average annual rate of 2.9%, compared to 1.5% for oil and 0.9% for coal, and this comes with increased supplies and the world’s tendency to prefer natural gas in generating electricity as the least emitting fossil fuel.
The search for new markets and the use of technology to beyond them is vital and necessary to ensure the flow of energy and meet the needs of consumers everywhere, with the increasing importance of the role of natural gas as a source of cleaner energy, because it is free from any polluting particles such as nitrogen oxide and sulphur oxide.
Dr al-Sada believes that natural gas, in the previous years, has proven its worth and expanded its use, even during periods of economic downturn due to the (Covid-19) pandemic, which greatly affected the demand for all types of energy, except for natural gas, which hardly faced a slight decline in 2020, it soon rebounded in 2021 by more than double the rate of decline, rising by about 4.6%.
He went on to say that the countries with the highest economic growth will maintain their consumption capabilities, and the Asian markets will maintain their position and their consumption capabilities as they are large economic markets with emerging and promising markets such as Vietnam, the Philippines and Thailand, in addition to the large ones such as China, Japan, Thailand, India and South Korea, as well as the European market.
He pointed out that the next stage of this industry was characterised by a significant reduction in carbon dioxide emissions, to which the major countries that represent the major economies of the world have committed, and pledged to the so-called net zero carbon emissions by 2050.
However, he believes that reaching this goal must be accompanied with producing other clean sources that are not harmful to the environment, such as hydrogen and ammonia, to make their strategy of reaching net zero carbon emissions a success, which makes natural gas possible in terms of switching to clean energy.
Dr al-Sada said that both the Organisation of Petroleum Exporting Countries (Opec) and the Gas Exporting Countries Forum (GECF) were keen on the interests of their members, explaining that Opec was established in 1960, i.e. in a different period in which gas had no role, and oil at that time contributed to enabling countries that were newly independent or on the verge of independence to exploit their capabilities and potentials, despite the control of a group of international companies in production and prices.
He believes that Opec is currently keeping supply and demand in balance, and is co-ordinating between its members with regard to production.
He said that Gas Forum was established in a completely different period as well, and the challenges are different, and it doesn’t have an item related to co-ordination in the production of gas, and its statute doesn’t encourage that, and its goal is to co-ordinate with regard to the exchange of expertise, financing matters, technology transfer, and conducting important scientific studies in all aspects of the gas industry, allowing member states to easily co-operate and take whatever decisions they deem appropriate based on their priorities and in a proper perspective.
Experts, specialists and those interested in the gas industry unanimously agree that Qatar’s expansion in this vital industry is carried out according to a strategic vision that takes primarily its environmental dimensions, in line with the global trend to reduce harmful emissions and the attendant climate changes that harm the planet.
Dr al-Sada confirmed that the Forum in its 6th edition came in an decisive period between two phases: the first considered gas as clean energy only, and in the second it was considered an energy enabling the world to reduce carbon emissions and maintain the temperature of the universe not more than 1.5 degrees Celsius, a percentage to which the countries of the world pledged to reach in the 2015 Paris Agreement, and the various climate conferences, the latest of which was in the Scottish city of Glasgow last November.
He emphasised the success of Qatar’s expansion plans in the gas industry, supported by cumulative experiences, credibility and acceptance by other parties, as well as the confidence and positivity when dealing in accordance with the sound directives and a wise policy led by His Highness the Amir Sheikh Tamim bin Hamad al-Thani.
The solidarity of all members of the Gas Forum is necessary to achieve its goals, and the failure to adhere to this by some members will negatively affect the interests of all.
There should be stress as well on keenness to reassure gas consumers that protecting the interests of its exporters does not mean that it will be at the expense of the interests of its consumers; consequently, constructive dialogue with them, and exchange of information are necessary for the development of gas and its uses for the benefit of all.
Undoubtedly, the Gas Exporting Countries Forum, in its 6th edition, expected to be held in Doha, is a favourable opportunity, after the world gradually recovered from the Covid-19 crisis, to explore more prospects for co-operation and co-ordination between member states in order to advance the gas industry, enhance its position, and discuss ways to develop gas global markets, as well as to play an active role in the development of its mechanisms of action.
HE Dr Mohamed bin Saleh al-Sada during the interview to Qatar News Agency.
