GECF in Regular Talkswith OPECon MarketBalance
demand fornatural gaswould haveincreased by“almost 50%by 2040
describingthe gasdemandincrease as“seriousOPEC comprises 14 members: Algeria,
Angola, Ecuador, Equatorial GuineaGabon, Iran, Iraq, Kuwait, Libya, Nigeria
Republic of the Congo, Saudi Arabia, the UnitedArab Emirates and Venezuela.
GECF is an international governmentalorganization comprised of 12 major natural gas
producers: Algeria, Bolivia, Egypt, EquatorialGuinea, Iran, Libya, Nigeria, Qatar, Russia,
Trinidad and Tobago, UAE and Venezuela. The7 observer members are: Angola, Azerbaijan,
Iraq, Kazakhstan, Norway, Oman and PeruWith the current number of Members the GECF
has a strong position on the world gas marketand among international energy organizations.
Its potential rests on the enormous natural gasreserves of the Member Countries all together
accumulating over 70% of the world provennatural gas reserves. GECF members control
38%of the pipeline trade and 85% of theliquefied natural gas (LNG) production.
The three largest reserve-holders in the GECF– Russia, Iran and Qatar – together hold about
57%of global gas reservesSokolov referred to the growing demand for
natural gas, saying natural gas was playing a“key role in the energy transition period “.
He said natural gas was in a “special” positionas it can “cover all sectors of modern economy”.
Sokolov said the demand for natural gas wasincreasing in all sectors in the world, noting
that GECF member states had now potential toincrease their gas supply level.
He said demand for natural gas would haveincreased by “almost 50%” by 2040, describing
the gas demand increase as “seriousSokolov said demand for natural gas would
keep rising to reach 5.3 tcm in 2040, from the3.6 tcm registered last year.
He said “GECF producers will be key tosupplying gas needs across the globe.
Sokolov also said GECF member states allagreed on the “stability” of gas market.
He said he was “optimistic about the roleof natural gas” in the “energy balance” as
the demand for natural gas would increase“dramatically” in the coming decades.
Sokolov said: “The role of natural gas in energybalance will increase.”
He said by 2040, gas will be supplying 26% ofenergy needs in the world.
Asked if gas was about to replace oil as themain source of fossil fuel in the world, he said
some “Asian nations” had already the potentialto replace oil with natural gas.
He also said that during the 2025-2040, oiltransport will be facing “limitations”, and that
would shift the global focus onto gas from oilFurthermore, Sokolov said, the world
population is growing rapidly, whichnecessitates paying more attention to the issue
of gas supply to consumersHe said gas producers would also “contribute
to sustainable development and climate
change”.
He noted that “despite too much focus onrenewables”, natural gas continued to remain
nstrumental” in the energy mix.
Sokolov said GECF planned to send delegates
to the G20 summit in June in order to discuss
the modalities of future gas supply from GECF
member states to G20 nations.
He also touched on the challenges posed to
gas production, saying: “Challenges are beyond
economic [aspects]. Some of them are policy
challenges.”
Sokolov specifically referred to the issueof US sanctions imposed against Iran’s oil
sector, adding that restrictions did not allowdevelopment of natural gas” in IranMost foreign companies have left Iran sinceUS President Donald Trump pulled out of Iran’s historic 2015 nuclear deal with six worldpowers in May last year and snapped sanctionsback in place in August and November that yearA main gas producer in Iran is the giantoffshore South Pars gas field which is sharedwith Qatar. Most phases of South Pars havealready become operational, but SP11 wasexpected to be developed by a consortium ledby France’s Total. The French company pulledout of the project, fearing US penaltiesSokolov rejected US sanctions against Iran,
saying: “The position of the GECF is very clearly