The Gas Exporting Countries Forum on the 25th expected that due to the escalation of the conflict between Russia and Ukraine triggered a global energy crisis, the natural gas market will remain in short supply until 2025.
The 24th Ministerial meeting of the Gas Exporting Countries Forum was held in Cairo, the capital of Egypt, from 23rd to 25th. Mohamed Hamel, Secretary-General of the Forum from Algeria, said that despite the increase in investment in gas production, participating countries do not expect to add to the market for the next three years.
"We think this market [supply] is likely to remain tight until 2025 or 2026, when new projects that are still under development will come on stream," Mr Hummel told a news conference.
Russian Energy Minister Nikolai Shuliginov attended the meeting but did not make any public statements.
The Gas Exporting Countries Forum held its first ministerial meeting in 2001, and became a fully structured international organization in 2008, holding a summit of the leaders of its member states every two years. At present, there are 11 member states including Russia, Qatar, Iran, Nigeria and Venezuela, and 8 observer states including Iraq and the United Arab Emirates. Its members together account for 72% of the world's proven natural gas reserves.
Tariq Mullah, Egypt's Minister of Petroleum and Mineral Resources, said that in the current situation of strong global demand, Egypt is taking steps to increase its LNG export capacity. Earlier this year, Egypt signed a five-year tripartite agreement with the European Union and Israel to export Israeli natural gas to the EU through Egyptian liquefaction.
After Russia launched a special military operation against Ukraine in late February, the United States, the European Union and other Western economies imposed severe economic sanctions on Russia, causing a global gas supply crunch and soaring prices.
As winter approaches and energy demand peaks, energy prices in EU countries are likely to rise further.
Many EU countries have long been highly dependent on Russian energy supplies, and the backlash caused by sanctions against Russia has become increasingly prominent. The European Union, which last year imported about 40 percent of its natural gas from Russia, is seeking to wean itself off its dependence on Russian energy, and many countries are trying to find alternative sources of gas.
Opec +, a group of members of the Organization of the Petroleum Exporting Countries led by Saudi Arabia and other non-OPEC producers such as Russia, decided earlier this month to cut monthly crude oil production by 2 million barrels per day from August levels starting in November, sparking anger in the United States, which fears the cuts will further drive up energy prices.
Source: Economic Information Daily
