GECF Synergy, a Must for Energy Transition

Mohsen Paknejad

Iran’s Minister of Petroleum

Due to its giant oil and gas reserves, Iran has regularly been a key energy player worldwide. Despite being subject to the most brutal restrictions and sanctions the United States has unilaterally imposed on Iran, it has embraced strong diplomacy and adopted unique strategies to maintain its role, standing, and reputation in the energy sector. That takes added significance when one learns that global demand for sustainable and reliable energy has been on a rising trend.

What is tangible is that the gas industry, associated with clean and reliable energy, is a valuable and strategic asset of GECF member states. In the current period of energy transition, it can be the winning card to bring about synergy among gas producers, not to mention to bring about political and economic growth and development.

In my opinion, the basis of the formation of organizations such as OPEC and the GECF goes beyond market regulation to include increased synergy and depoliticization in the energy sector. To that effect, Iran’s policy revolves around political and economic cooperation, interdependence, and the use of energy as a clean and reliable source.

Despite internal restrictions on the one hand and unilateral US sanctions on the other, Iran remains committed to supplying gas to Turkey and Iraq without having ever sought any political exploitation of this issue. Iran does not believe in weaponizing this source of energy; rather, it has tried its best to benefit from gas as a tool for bolstering regional and global cooperation.

Last but not least, now that the world is shifting from fossil energies to clean fuels; natural gas, which is much less polluting than oil and coal, can play an influential role in the process of transition. Therefore, the GECF member states, as the initiators of this strategy, can set up a regional gas hub, proceed with joint investment, and share know-how and technology to help mutual synergy and interaction materialize. As a GECF founding member, Iran will offer proposals, display alignment with fellow member states, and secure the common interests of gas-exporting nations.

GECF Secretary Generals’ Chronology

HE Leonid Bukhanovsky

Nationality: Russian

Terms in Office: Two

First Mandate: 2010-2012

Second Mandate: 2012-2014

Major Actions:

• Development of GECF Member States policy for exchange of information
• Initiation of research activities through the development and analysis of capacities and capabilities
• Holding meetings with the UN Secretary General aimed at international recognition of GECF
• Cooperation with international energy bodies including IPF and IPI

 

HE Mohammad Hossein Adeli

Nationality: Iranian

Terms in Office: Two

First Mandate: 2014-2016

Second Mandate: 2016-2018

Major Actions:

• Improving the Secretariat’s reputation
• Improving GECF's international standing
• Setting up market monitoring team in the Secretariat for daily analysis of gas developments
• Joining Joint Organization Data Initiative
• Setting up the Technical and Economic Council (TEC) in GECF

 

HE Yury Sentyurin

Nationality: Russian

Terms in Office: Two

First Mandate: 2018-2020

Second Mandate: 2020-2022

Major Actions:

• Assessment of proper methods to mitigate GHG emissions in energy systems
• Holding bilateral talks with  some gas exporting countries to encourage them to join GECF
• Upgrading the level of cooperation with other energy bodies including OPEC
• Setting up Gas Research Institute (GRI) to upgrade technical cooperation between Member states
• Publishing GECF long-term outlook to upgrade GECF’s standing among international energy fora

 

HE Mohamed Hamel

Nationality: Algerian

Terms in Office: One

2022-Present

Major Actions:

• Accession of  new member countries such as Senegal, Mozambique and  Mauritania
• Contribution to the successful holding of the 7th GECF Summit in Algiers and Algiers Declaration in March 2024
• Arranging GECF’s pavilion in COP28 in the UAE and COP29 in Azerbaijan to promote gas as a clean fuel of choice
• Launching Monthly Gas Market Report (MMR) in February 2023 and Annual Gas Market Report (AGMR) in 2024
• Expanding cooperation with international organizations and bodies

GECF Summits Promote Objectives

The Gas Exporting Countries Forum (GECF) holds summits every two years in one member state. The summits pave the ground for the heads of state and government to exchange views on key issues. The summits enable member states to discuss developments and policies associated with energy in general and gas in particular. During summits, member states reaffirm the GECF’s objectives.

The GECF has thus far held seven summits with the first one having been on 15 November 2011. The following is a review of the summits.

1st Summit in Doha

The 1st GECF Summit of Heads of State and Government of GECF Member Countries was held in Doha, Qatar on 15 November 2011.

The Summit was attended by the Sovereigns, Presidents, and Heads of State of Algeria, Nigeria, Equatorial Guinea, Bolivia, Russia, and Oman. Kazakhstan, Norway, the Netherlands, Trinidad & Tobago, and Venezuela were represented by their Ministers of Energy. As Iran’s president had an unforeseen involvement, Iran’s Minister of Petroleum represented Iran at the Summit.

The participants in this meeting emphasized that the GECF is currently evaluating the best ways to overcome the current challenges in the regional and global gas markets coordinating between gas producers and consumers and starting effective dialogues between them.

Emphasis on achieving fair natural gas prices based on global crude oil prices, defining the place and role of natural gas in building an economy with low-carbon production, coordinating it with the development of alternative energies, and promoting the environmental benefits of this clean fuel were among other issues discussed in the first summit.

2nd Summit in Moscow

The 2nd GECF Summit of Heads of State and Government of GECF Member Countries was held in Moscow, Russia on July 1, 2013. Hosted by HE Vladimir Putin, President of the Russian Federation, the 2nd GECF Summit of Heads of State and Government of the GECF Member Countries was attended by representatives of Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Oman, Qatar, Trinidad and Tobago, United Arab Emirates, and Venezuela, as well as Iraq, Kazakhstan, the Netherlands and Norway as Observers, and IEA, IEF and OPEC as guest international organizations.

The summit concluded, adopting the Moscow Declaration under which the participants committed to strengthening GECF as a platform for defining and advancing the Member Countries’ position on challenges and issues of international gas markets; preserving and enhancing principles of international gas trade including risk sharing mechanisms which have proven to be effective and have allowed for the continued development of natural gas worldwide;  uphold the fundamental role of long-term gas supply contracts in financing large-scale gas projects along the value chain and in providing mutually acceptable solutions for the security of demand and supply; and continue to support gas pricing mechanism based on oil/ oil products indexation to ensure fair prices and stable development of natural gas resources. They also committed to fostering the consistent growth of natural gas usage as an abundant nonrenewable source of energy to increase its share in the world’s primary energy mix; promote the expansion of natural gas utilization in different forms including motor fuel and feedstock; and encourage GECF dialogue with all gas market players and stakeholders to promote gas as a driver for environmentally friendly economic growth and social development.

3rd Summit in Tehran

The 3rd GECF Summit of Heads of State and Government of GECF Member Countries convened in Tehran, Iran on November 23, 2015.

Hosted by Hassan Rouhani, President of the Islamic Republic of Iran, the Summit was attended by

Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, United Arab Emirates, and Venezuela; as well as Azerbaijan, Iraq, Kazakhstan, the Netherlands, Norway, Oman and Peru as Observers.

The participants declared their determination to support the common interests of GECF Member Countries by implementing coordinated policies and strategies at the international level to enhance the overall socio-economic benefits of their natural gas resources; promote natural gas consumption as the cleanest fossil fuel with a vital role in the global energy mix aiming to achieve Sustainable Development Goals (SDGs) for a clean, reliable and efficient source of energy; and enhance efforts in joint investments among Member Countries to provide efficient and reliable natural gas supply to world markets.

They also emphasized the fundamental role of long-term gas contracts in financing large-scale gas projects along the value chain and promoting an open and constructive dialogue with natural gas importers through international and regional energy organizations and fora on the issues including demand for natural gas and necessary cross-border gas infrastructure development to share risks equitably between suppliers and consumers of natural gas.

4th Summit in Santa Cruz

The 4th GECF Summit of Heads of State and Government of GECF Member Countries convened in Santa Cruz, Bolivia on November 24, 2017.

Recalling that the GECF Member Countries have the largest share of gas reserves and production capacity in the world, the summit emphasized their role as reliable suppliers to satisfy global energy needs.

They resolved their common determination to develop and implement policies for the production and consumption of natural gas as a reliable, clean, efficient, and vital source in the global energy mix. They highlighted the joint effort of the GECF Member Countries to position natural gas as a fuel of choice and feedstock and to attract investments in the natural gas value chain securing a balance between prospective supply growth and demand, supporting the stability of global gas markets, and developing new natural gas markets.

5th Summit in Malabo

The 5th GECF Summit of Heads of State and Government of GECF Member Countries was convened in Malabo, Equatorial Guinea on November 29, 2019. The summit reaffirmed the absolute and permanent sovereign rights of member countries over their natural gas resources, noting it works to protect the interest of its member countries and to support sustainable development efforts through facilitating access to affordable, safe, and clean energy for all.

It was the very first time in the history of the GECF, the summit took place on the African continent. Therefore, special emphasis was made not only on solidifying the role of natural gas in a rapidly evolving energy mix, but also on the role that it is playing and would come to play in global energy markets, and in the African region in particular.

The summit recalled the Declarations of the GECF Summits held in Doha, the State of Qatar, in 2011, Moscow, the Russian Federation, in 2013, Tehran, Islamic Republic of Iran, in 2015, and Santa Cruz de la Sierra, Plurinational State of Bolivia, in 2017.

6th Summit in Dona Again

The 6th GECF summit of Heads of State and Governments of GECF Member Countries was held in Doha, Qatar on 22 February 2022. Under the theme “Natural Gas: Shaping the Energy Future”, the 6th GECF Summit brought together Heads of State of Member Countries: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad & Tobago, and Venezuela, and Observers: Angola, Azerbaijan, Iraq, Malaysia, Mozambique, Norway, Peru, and the United Arab Emirates.

The Summit’s slogan “Natural Gas: Shaping the Energy Future” was reflective of its era, taking place at a time of energy price volatility and heightened attention to the world’s fastest-growing hydrocarbon fuel.

The Doha Declaration addressed all aspects of the global gas markets that had preoccupied policymakers and industry stakeholders in recent times as they navigate a changing energy landscape.

The Doha Declaration collectively resolved “to promote natural gas as an abundant, affordable, clean, and reliable source of energy, and as the fuel of choice to meet the growing world energy

needs, and to address climate change and improve air quality.”

It also underlined the continued trust of Member Countries in the Forum by asking it to “encourage the expanded use of natural gas domestically and internationally to address the gap in achieving United Nations’ Sustainable Development Goal #7, which affects the most vulnerable.”

The Doha Declaration also promised to “strengthen natural gas’ environmental credentials, in particular through efforts to reduce gas flaring and methane emissions, and the development of eco-friendly technologies, including carbon capture, utilization, and storage (CCUS).”

7th Summit in Algiers

The 7th GECF Summit of Heads of State and Government of GECF Member Countries convened in the historic city of Algiers, the People’s Democratic Republic of Algeria, on 2 March 2024. During the Summit, the GECF leaders approved the Algiers Declaration in the spirit of solidarity and cooperation.

The Summit brought together Heads of State and Government from Member Countries: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, the United Arab Emirates, and Venezuela; from Observer Members: Angola, Azerbaijan, Iraq, Malaysia, Mauritania, Mozambique, and Peru, and Guest Countries, including Italy, Oman, Senegal, and Tunisia.

The Summit was also attended by representatives from international organizations, namely the African Energy Commission, the African Petroleum Producers Organization, the Economic Research Institute for ASEAN and East Asia, the Organization of Arab Petroleum Exporting Countries, and the Organization of the Petroleum Exporting Countries.

The 7th GECF Summit welcomed the accession of the Republic of Mozambique, the Islamic Republic of Mauritania, and the Republic of Senegal to the Forum, reaffirming the GECF’s collective pursuit of fostering energy cooperation and dialogue.

The Summit revolved around the theme "Natural Gas for a Secure and Sustainable Future." This theme holds particular significance due to the growing importance of natural gas as an affordable, reliable, and sustainable energy resource for advancing socio-economic development and as a response to the energy trilemma of energy security, affordability, and sustainability. Additionally, natural gas stands out as a pivotal commodity for food security.

The Algiers Declaration expressed the leaders’ resolve to “promote natural gas as an abundant, affordable, flexible and reliable energy source, and harness and develop more environmentally-friendly, efficient and sustainable natural gas technologies”.

In the context of sustainable development, there was a commitment to “advocate for the wider utilization of natural gas in domestic and international markets, especially as a strategic measure to tackle energy poverty and pursue United Nations Sustainable Development Goals. This includes championing natural gas as a pivotal source of energy for a just, inclusive, and prosperous future, ensuring that no one is left behind”.

The leaders welcomed the inauguration in Algiers of the headquarters of “the Gas Research Institute (GRI) to expand cooperation in, inter alia, natural gas technologies, scientifically-guided research, and innovation-led capacity-building”, for the benefit of GECF Member Countries.

Chronology; GECF Ministerial Meetings

The Gas Exporting Countries Forum (GECF) has held 25 Ministerial Meetings and 7 Summits since its establishment. Ministerial Meetings decide on the general policy of the GECF. The appointment of secretary general is also put to vote. The 26th GECF Ministerial Meeting is set to be hosted by I. R. Iran in Tehran on 29 October 2024.

Given estimates on the rise in the natural gas share in the global energy mix from the current 23% to 26% in 2050, the upcoming meeting in Tehran would present Iran with a chance to improve its ties further and enhance its share of natural gas trading and help supply growing gas demand in the world.

The following is a quick review of the 25 Ministerial Meetings the GECF has held so far.

1st Meeting: Adoption of GECF Objectives

The origins of the GECF can be traced to the First Meeting of Ministers held in Tehran, Islamic Republic of Iran, on May 19-20, 2001. This 1st Ministerial Meeting was convened by the Minister of Petroleum of Iran and was attended by the governments of Algeria, Brunei, Indonesia, Iran, Malaysia, Oman, Qatar, the Russian Federation, Turkmenistan, and Norway (Observer).

During this 1st Ministerial Meeting, it was agreed that the Forum will aim to foster the concept of mutuality of interests by favoring dialogue among producers, between producers and consumers as well as between governments and energy-related industries; to provide a platform for research and exchange of views, and to promote a stable and transparent energy market. These and other goals were outlined in a document prepared by the GECF Expert Meeting and approved by the Ministers as a mandate of the GECF.

From 2001 to 2003, the main structure of the GECF comprised a Ministerial Meeting and Expert Meeting.

2nd Meeting: Expert Meetings

The 2nd Ministerial Meeting held in Algiers emphasized the importance of dialogue and cooperation between producers and consumers to ensure the development of the gas industry, to meet the requirements of the world markets under the best possible conditions without any prejudice to the interest of any of the parties.

Additionally, the GECF Expert Meeting was instructed by the Ministers to develop a database of gas projects and contracts terms & conditions, as well as specific studies such as new gas utilization and associated costs.

3rd Meeting: Liaison Office Agreed

The 15 countries that met in Doha for the 3rd Ministerial Meeting in 2003 agreed to create a Liaison Office as a focal point for gathering data and for the supervision of the GECF projects. This event was also an opportunity to follow up the study on new gas utilizations, stress the relevance of developing a world supply and demand gas model, and evaluate gas pricing.

4th Meeting: Joint Investment

During the 4th Ministerial Meeting of the GECF in Cairo, the Forum made steps to advance toward the goal of developing a more integrated discussion platform and initiated the creation of the Executive Bureau (which would transform later into the Executive Board) and consolidated the Liaison Office.

In Cairo, the Ministers highlighted the importance of fair prices for natural gas and the need for joint investments and research between Member Countries as a means to enhance cooperation, as well as the necessity to exchange information and data.

5th Meeting: Executive Bureau

The 2005 meeting in Trinidad and Tobago was an occasion to agree on the general framework, the objectives, and the structure of GECF (Ministerial Meeting, Executive Bureau, Experts Meeting, and Liaison Office).

Additionally, the Ministers also approved to launch development of the world supply and demand gas model.

The Ministerial Meeting was not held in 2006, but the Executive Committee of the GECF met in Qatar to work on related issues.

6th Meeting: Databank

During the years 2007 and 2008, the definite establishment of the GECF institutional base took place. In this regard, during the 6th Ministerial Meeting held in 2007 in Doha, Qatar, the achievements of the previous meetings were reviewed and it was recommended to develop a Statute for the Forum, to expand the Liaison Office so that it could become the Secretariat of the organization and to draft its internal regulations. I.R. Iran volunteered to draft the Statute, and prepared a draft to be reviewed by the member countries.

For this purpose, the Ministers created the High-Level Committee, which held meetings in Qatar, Egypt, Iran, Venezuela, and Russia throughout 2007 and 2008.

Following that, GECF ministers came together on 23 November 2008 in Moscow, Russia. It was one of the important meetings of GECF Member Countries.

7th Meeting: International Recognition

As a result of the work of the High-Level Committee, the Ministers gathered together on 23 December 2008 in Moscow, Russian Federation, one of their most important meetings, alongside their 1st Meeting in Iran. The 7th Ministerial Meeting established the GECF as an International Governmental Forum with the approval and signing of the Agreement on the functioning of the GECF and the Statute of the GECF, the documents that constitute the legal basis for the Forum, thus transforming it into a full-frame international body.

Still in the name of the body the word “Forum” was kept to reflect its open and democratic nature. The GECF Agreement and Statute were signed by the Ministers of the current Member countries of the Forum: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, and Venezuela. Kazakhstan and Norway were accepted as Observer Members. The city of Doha, Qatar, was selected as the venue for the Headquarters of the Forum.

8th Meeting: Stabilization

From 2009 to 2011, the GECF experienced cohesive progress in its internal structure and further talks about the main and key structures of the gas industry.

During the 8th Ministerial Meeting, the Ministers highly praised the findings of the study on gas prices, which was called for at the 6th Ministerial Meeting, and discussed the latest developments and trends in the gas industry.

9th Meeting: First Secretary-General

The signing of the GECF Host Country Agreement between the State of Qatar and the GECF, the inclusion of the Netherlands as an Observer Member, the appointment as per the Statute of the authorities for 2010 (President and Alternate President of the Ministerial Meeting: Algeria and Venezuela; Chairman and Alternate Chairman of the Executive Board: the Venezuelan and Algerian EB members, respectively), and the election and appointment of Mr. Leonid Bokhanovskiy as the Secretary General of the GECF were the main outcomes of the 9th Ministerial Meeting which was held in Doha, Qatar in December

2009.

10th Meeting: Energy Security

Leonid Bokhanovskiy took office on January 1st, 2010, and set as his main duty to launch Secretariat activity in Doha, to develop a platform for GECF Member Countries to exchange information and to start in-house research activity by developing research and analytical capabilities. The registration of the GECF with the United Nations and the meeting between the Secretary General of the UN and the Secretary General of the GECF was a truly important step toward a worldwide recognition of the GECF, and opened doors to closer dialogue between the two organizations.

The 10th Ministerial Meeting was an opportunity to exchange views on the latest and mid-term developments in the natural gas market, assess their impact on the GECF countries, and provide guidelines for the newly established Secretariat.

The Ministers agreed that ensuring adequate and reliable supplies of gas at prices reflecting parity with oil prices is a challenge, considering that natural gas is an essential part of the fuel mix and plays an important role in meeting the global need for an environmentally friendly energy source. They also supported the promotion of energy security using cross investments and technological exchange without unjustified barriers (especially those related to carbon taxation) between consumers and producers based on their growing mutual interdependence. Therefore, the Ministers encouraged a model in which a gas consumer may participate in upstream and gas infrastructure development projects in a producer-exporter country, while a gas exporter may invest in mid and downstream networks and other gas facilities on a consumer side.

The acknowledgment of the relevant results of the report on the “International Gas Market Outlook to 2015” presented by Algeria, the assessment of the possibility of organizing a prospective Gas Summit of the GECF, and sending invitation to other gas exporting states that endorse the GECF Statute to become part of the organization as Members and Observer Members were part of the decisions of the 10th Ministerial Meeting.

11th Meeting: Strategic Committee

One of the main conclusions of the 11th meeting of the GECF Ministers in Qatar was to hold the 1st Gas Summit of the Forum in 2011 in Doha and the creation of a High-Level Ad Hoc Group to arrange this event.

Furthermore, the 11th Ministerial Meeting agreed on the creation of a Steering Committee to study the Evolution of the gas market and the outcomes of the global gas model; followed up on the status of the studies requested on important aspects of the gas industry.

Additionally, they overviewed the latest developments in the international gas market and their impact on the Member Countries; discussed the most effective ways and means of enhancing cooperation among the members of the Forum as a prerequisite for developing a stable and transparent gas market; and expressed concern about the current gas prices threatening investments in new fields and gas infrastructures.

12th Meeting: Dialogue

During the 12th Ministerial Meeting held in June in Cairo, the Ministers emphasized the importance of dialogue between producers and consumers to achieve a stable gas market; the timeliness of a mechanism to achieve balanced and fair gas prices for both parties, and the necessary cooperation between producers and consumers to support and sustain the required investments to develop the gas reserves in the producing countries and exchange of know-how and technologies in that regard, at the same time taking into account that meeting local demand for natural gas in the producing countries is a priority.

The Ministerial Meeting recognized the growing consolidation of the Forum and its importance as a space for the exchange of views and coordination, considering the short-term gas market developments and the challenges facing the natural gas industry, as well as the current economic and political world scenarios, underlined the role of the GECF as a factor of stability and cooperation among Member Countries of the Forum and consumer countries. The Ministers stressed the importance of long-term contracts and fair, oil-indexed pricing mechanism for natural gas, at levels reflecting market fundamentals.

13th Meeting: Industrial Challenges

Preparations for holding the First Gas Summit of Heads of State and Government of the GECF Member Countries remained one of the main topics of discussion for the 13th Ministerial Meeting held in Doha in November 2011. During this meeting, the Ministers approved the “Program of Work and Budget” of the GECF for the year 2012 and the appointment as per the Statute of the authorities for 2012 (President and Alternate President of the Ministerial Meeting: Equatorial Guinea and Russia; Chairman and Alternate Chairman of the Executive Board: the Russian and Equatorial Guinea EB members, respectively).

14th Meeting: Gas Pricing

The Ministers of the GECF met in Malabo, Republic of Equatorial Guinea, on November 21st, 2012, to exchange views on current developments in the global natural gas market and the progress of the affairs of the Forum.

The Ministers highlighted the importance of natural gas as a green fuel, an abundant resource, and a safe, clean, reliable, and efficient energy carrier. The Ministers acknowledged the Member countries’ efforts to promote a stable supply of natural gas to ensure the security of sustainable demand and necessary conditions for infrastructural development and highlighted the importance of adopting non-discriminatory and

predictable legal framework, energy, trade, fiscal, and environmental policies to enhance development in the gas sector.

15th Meeting: Adeli, New Secretary General

The 15th meeting was held in Tehran in November 2013. Voting was held for naming a new secretary general. Although a consensus was required for electing a secretary general, voting was held, but no consensus was reached. However, as required by its Statute, the post of Secretary General can never remain vacant, the second procedure was applied, i.e. ballot voting. That led to the election of Mohammad Hossein Adeli as the new secretary general, after outdoing his Libyan counterpart.

Adeli took office as the new Secretary General of the GECF on 1 January 2014 for two years.

The Ministers and Heads of Delegations exchanged views on the recent developments in the international gas markets and reaffirmed their commitment to the Moscow Declaration, which sets the framework for GECF Member countries to collaborate and cooperate in the development and use of their natural gas resources.

16th Meeting: Gas Market Complexities

The 16th Ministerial Meeting of GECF was convened in Doha, Qatar, on 16 December 2014.

The Ministerial Meeting discussed the global gas market report presented by the Secretary General, which covered the latest developments in the energy market in general and in the gas market in particular, including but not limited to short-term trends of supply and demand for natural gas worldwide and in specific regions and countries, the evolution of LNG trade across the regions, developments of the gas prices. They assessed the complexity and dynamics of the global natural gas market in the short, medium, and long term.

The Ministerial Meeting reiterated the need to monitor the challenges facing the gas industry, and the Secretariat will continue the evaluation of developments occurring in the energy market with a focus on supply and demand.

17th Meeting: Adeli Term Renewed

The 17th Ministerial Meeting of the GECF was convened in Tehran on November 21, 2015.

In his opening remarks, the President of the Ministerial Meeting gave an overview of developments in the gas markets and outlined the challenges facing the GECF Member countries, emphasizing the need for enhanced cooperation and coordination among GECF Member countries to promote natural gas and realize the objectives of the GECF.

The Ministerial Meeting discussed the global gas market report presented by the Secretariat including recent developments in the world economy, natural gas demand, challenges, and competition from other fuel sources and other exporters. The report also discussed the position of GECF in the global gas trade by pipeline and LNG, and the important role of GECF in gas supply. The development of conventional and unconventional natural gas supply and the evolution of natural gas price trends were also discussed in the Secretariat’s report.

The Ministers also discussed the impact of environmental commitment and COP 21 and its implication on energy policies and demand for gas.

The Ministerial Meeting reiterated the need for common understanding and collective action among GECF Member countries to address common challenges in the gas industry, in particular, developments in the energy market with a focus on supply and demand.

The Ministers renewed the term of Mohammad Hossein Adeli as Secretary General of the GECF for two years under the Statute.

The Ministers approved the Republic of Azerbaijan as the new Observer Member of the GECF.

18th Meeting: Long-Term Strategy

The 18th Ministerial Meeting of the GECF was convened in Doha, State of Qatar on Thursday, November 17, 2016.

The Ministers listened to two presentations, the short-term gas market report as well as the development of the gas market in the long term based on the GECF Outlook, and discussed the challenges and opportunities of the gas market.

The Ministerial Meeting was a milestone achievement for the GECF. Two important documents, the Long Term Strategy (LTS) and the GECF Outlook 2040 were discussed.  The LTS defines the GECF’s vision, mission, and strategic objectives. The Ministers approved the Long Term Strategy and mandated the Executive Board to develop a five-year action plan for its implementation. The LTS is to be reviewed every 5 years.

The Ministers underlined the momentum created by the Paris Agreement and recalled the important role of gas in responding to environmental concerns, both in terms of air quality and climate change, given the environmentally friendly characteristics of natural gas that make it a fuel of choice.

19th Meeting: Research Center

The 19th Ministerial Meeting of the GECF was convened in Moscow, the Russian Federation on October 4, 2017.

The Ministers reviewed the short-term gas market report as well as the long-term gas outlook and discussed developments, opportunities, and challenges of the market now and in the future.

They also reviewed the Secretariat’s report about Member Countries’ cooperation and exchange of information on market developments and marketing as well as environmental issues.

The Ministers reiterated the importance of cooperation amongst Member Countries, as a core value of the Forum, to continue to stabilize the gas market and enhance the gas market share in the energy mix based on the principles of the Forum’s statute, long-term strategy, and Summits’ declarations.

The Ministers also emphasized the importance of the global community to the Paris Agreement and reiterated their resolve to pursue the promotion of natural gas and its pivotal role in responding to the Paris Agreement concerns, but also as an affordable, accessible, reliable, and clean source of energy.

Based on the LTS of the Forum, the Ministers reviewed and approved the Five-Year Working Plan of the Forum. They also welcomed the Secretariat’s initiative in completing and publishing the annual statistical bulletin that contains valuable data and information about gas markets.

The Ministers also reviewed the report on the Feasibility Study of the Gas Research Institute (GRI) and decided to create it in Algeria.

Upon the completion of two terms of tenure of the incumbent Secretary General, the Ministers selected and appointed Mr.Yuri Sentyurin as the Secretary General of GECF for two years starting from January 2018.

20th Meeting: 10th Anniversary

The 20th Ministerial Meeting of the GECF, which coincided with the 10th Anniversary of the Forum, convened in Port of Spain, Trinidad and Tobago, on

14 November 2018.

The ministers noted the role of natural gas in human well-being and as well in the mitigation of GHG impacts and iterated the need for close cooperation and unity for gas development and gas business for the benefit of nations.

The Ministerial Meeting welcomed the Republic of Angola as an Observer Member of the GECF.

The Meeting went on to discuss the GECF 2018 Global Gas Outlook (GGO). The Forum’s Annual Statistical Bulletin 2018 and the GECF Short-Term Market Report were discussed and the Secretariat was thanked for its continued improvements/efforts. At the GECF Gas Research Institute (GRI), the Ministerial Meeting considered and approved the recommendation of the Executive Board to launch the necessary activities related to the functioning of the GRI.

21st Meeting: Concern Over Sanctions

The 21st Ministerial Meeting was convened in Moscow, the Russian Federation, on October 3rd, 2019.

The Ministerial Meeting expressed its deep concern about the extra-territorial application of laws and regulations, as well as an objection to unilateral economic sanctions in the gas sector, particularly against GECF Member Countries.

The Ministers discussed the current situation of the gas market and expressed their concerns about the challenges the gas industry is facing in terms of geopolitical tensions weakening world economic growth; and the uncertainty of energy policies and economic sanctions against some GECF Member Countries that prevent them from unlocking their huge potential of natural gas resources.

Upon the completion of the first term of tenure of the incumbent Secretary General, the Ministers decided to extend the term of GECF Secretary General Mr. Yury Sentyurin for two years starting from January 2020.

22nd Meeting: GECF Awards

The 22nd Ministerial Meeting of the GECF was held on 12 November 2020. The Meeting assessed the current dynamics in the natural gas industry and acknowledged that the fundamentals that will drive natural gas’ projected growth to the top of the global energy mix remain unchanged.

The Ministers stressed that this abundant and flexible source of energy will continue to satisfy the increasing world energy needs, as well as the exigencies of the three pillars of sustainable development, namely economic development, social progress, and the protection of the environment. Furthermore, the Meeting also emphasized that natural gas will continue to be a stepping stone to sustainable development and lower energy systems’ emissions.

The Meeting also acknowledged the resilience displayed by the Member Countries in their attempt to ensure unrestricted functioning of free and flexible gas markets, as well as uninterrupted supplies to customers, despite numerous challenges and decline in revenues.

An advanced 2020 edition of the Forum’s flagship publication, GGO 2050, was presented to the Meeting, based on the GGO of the GECF. The Meeting approved the policy and procedures for the GECF Awards. The public launch of the GECF Awards will start in 2021 and will culminate in a gala ceremony to be held on the sidelines of the 6th GECF Summit of Heads of State and Government.

23rd Meeting: Investment

Against the backdrop of unprecedentedly high gas prices fracturing market stability, the 23rd Ministerial Meeting of the GECF was held in Doha on 16 November 2021. The meeting was convened via videoconference.

The Meeting took into account the immediate and long-term outlook for natural gas, and the Ministers noted that as the global economy moves from under the shadow of the COVID-19 pandemic, the resulting shortage of gas from Europe to Asia demonstrates the need for further investments in natural gas as an affordable, abundant, and flexible source of energy to achieve energy equality for all parts of the world sustainably. 

The Ministers commended the heightened interest in natural gas at the Conference of Parties (COP26), where several world leaders backed gas as the harbinger of their nations’ economic and sustainable development. As an Observer to the United Nations Framework Convention on Climate Change (UNFCCC), the GECF had urged the international community in Glasgow to look to gas as the solution to achieve the right balance between post-COVID-19 economic and social requirements and environmental constraints.

Furthermore, the GECF Members acknowledged that decarbonization of economies should be approached with careful consideration to hasty acceleration of greening of economies lest the climate agenda turns into an energy crisis. While noting that high gas prices are not in the interest of buyers or sellers, the Ministers reiterated the fundamental role of long-term gas contracts and the gas pricing based on oil/ oil products indexation to ensure stable investments in the development of natural gas resources.

The Ministers appointed Eng. Mohamed Hamel as the Secretary General of the GECF, effective from 1 January 2022.

24th Meeting: Multidimensional Crises

The 24th Ministerial Meeting of the GECF was held on 25 October 2022 in Cairo, the Arab Republic of Egypt.

The Ministerial Meeting emphasized the GECF objective of supporting the permanent sovereignty of its member countries over their natural resources and their ability to independently plan and manage the sustainable, efficient, and environmentally conscious development, use, and conservation of natural gas resources for the benefit of their people, including through cooperation with neighboring countries without restrictions.

The Ministerial Meeting discussed at length the multidimensional crisis that encompasses the economy, energy, trade, health, environment, and geopolitics. It noted with concern the rising risks stemming from gloomy economic prospects, inflation unseen in decades, tightening financial conditions, and supply-chain disruptions.

The Meeting underscored that natural gas markets are undergoing dramatic changes in terms of physical flows, market functioning, contractual arrangements, and investment. It observed that while gas hubs experience extreme volatility, long-term gas contract prices are more stable and predictable.

It noted the huge volume of investment required to satisfy growing world energy demand. It underscored the importance of timely investment for market stability and the crucial need for an unhindered flow of financial resources and access to technology in a non-discriminatory manner. They reemphasized the crucial need for security of supply and security of demand and for collaboration to protect critical gas infrastructure and enhance resilience to natural disasters, technological incidents, and man-made threats, such as malicious use of information and communication technologies.

1-OPEC Output Up 466,000 b/d Month-on-Month

The Organization of the Petroleum Exporting Countries (OPEC) has announced its October output increased 466,000 b/d month-on-month to 26.535 mb/d.

Saudi Arabia with 8.968 b/d, Iraq with 4.068 mb/d and Iran with 3.259 mb/d of oil production are the top three producers of the 12-member body.

OPEC+’s October output was reported at 14.055 mb/d, down 251,000 b/d from September.

Overall, OPEC and its allies increased their crude oil production to 40.338 mb/d in October, up 215,000 b/d month-on-month.

According to the latest OPEC report Iran’s heavy crude oil gained $1.47 from September to trade at $74.06 a barrel in October. Iran’s heavy crude oil price has averaged $81.03 in 2024.

OPEC Reference Basket (ORB) price in October reached $74.45, up 1.2% from September.

A report released by the OPEC Secretariat revised up crude oil demand for 2024 by 1.66 mb/d to reach 104.3 mb/d. However, demand for crude oil in October was down 110,000 b/d month-on-month.

OPEC forecasts that global oil demand in 2025 will increase 1.64 mb/d to reach 105.78 mb/d, which would be down 210,000 b/d from the preceding month.

2-Petchem Central to National Wealth

First Vice President Mohammad Reza Aref has underscored the key and pivotal role of the petrochemical industry in national wealth generation and boost.

“There is no option but to reach the top spot in petrochemical exports in the region. Prominent scientific forces of this industry constitute the key advantage of Iran’s petrochemical sector compared with other countries in the world,” he said in his meeting with the CEOs of leading petrochemical companies.

Aref laid emphasis on the necessity of handling the petrochemical sector’s challenges, saying: “The 7th National Development Plan forecasts an 8% growth rate, which necessitates assistance from the petrochemical sector.”

Referring to $150 billion in foreign investment needed for reaching the projected 8% growth rate, he said: “The petrochemical sector is one of the important sectors of the economy for foreign investment, in which case, a very good market would be created for Iranian products all across the globe.”

He underlined the significance of utilizing advanced technologies in the industrial sector, particularly the petrochemical industry, saying: “In light of quick and extensive technologies in the world, we have to move in parallel with state-of-the-art technologies and the petrochemical sector has always been a leading sector in benefiting from cutting edge technology. We have to keep in mind that as far as a traditional vision dominates, production costs will by no means enable us to compete in global markets. Utilizing advanced technologies, particularly artificial intelligence that would significantly help achieve higher efficiency and reduce costs, is a must.”

Aref said R&D was a fundamental obligation in the industry, noting: “The issue of R&D in the industry is not a cost, but an investment, which leads to extremely high efficiency and profit of companies and industries. For instance, major car manufacturing companies in the world industry earmark 3% of their sales for R&D. But this key issue has been neglected in Iran. However, the petrochemical sector has taken this issue into consideration.”

He said insufficient attention had been paid to trade diplomacy in recent years in Iran. He added that the 14th administration would be looking seriously at exports and the importance of trade and economic diplomacy.

Aref called on petrochemical companies to help the 14th administration as they are instrumental in nonoil exports.

3-Crude Oil Refining Capacity at 2.4 mb/d

The CEO of National Iranian Oil Refining and Distribution Company (NIORDC) Mohammad Sadeq Azimifar has said that refiners across Iran can process 2.4 mb/d of oil.

He broke down the figure into 1.9 mb/d of crude oil and 500,000 b/d of condensate at refineries across the country.

Azimifar said the Abadan refinery accounted for the bulk of refining in the country, adding that new units at this facility would receive 470,000 b/d of feedstock to be treated.

He said that a 600,000 b/d processing capacity hike would be accessible by financing nearly-completed projects.

“Such capacity hike would occur partly through existing refineries and partly through new refineries,” he said.

Azimifar said 270 ml/d of various refined petroleum products was being distributed in Iran, adding: “Distribution of petroleum product has jumped from 247 ml/d to 270 ml/d, which is significant.”

He said that power plants account for the highest rate of growth in the consumption of liquid fuel. “This is why with lower gas delivery, more liquid fuels are consumed and storage levels decline.”

Over the past two years, gasoline consumption has grown about 6%, he said, forecasting gasoline consumption to reach 172 ml/d by 2031. “There is minor imbalance in cold seasons in the gasoil sector. Our gasoil production during the seven months of the current calendar year averaged 111 ml/d.”

“Imbalance in liquid fuel has spread to gasoil, but we have no imbalance in fuel oil production and we are even exporting fuel oil,” he said.

Azimifar said: “If the refining and distribution sector intends to reach the 7th National Development Plan target of 129 ml/d of gasoline and 130 ml/d of gasoil production and manage its consumption, there is a package of urgent strategies, the most important of which is to preserve and enhance production.”

“Among existing refineries, there is potential at the Abadan refinery to increase refining capacity by 60,000 b/d. The hydrocracking units of the Abadan refinery are set to come online soon, which would cut fuel oil production by 6 ml/d and rather than that add 5 ml/d to Euro-grade gasoil output,” he said.

Azimifar said: “At the Isfahan and Tehran refineries, feedstock receipt may be increased by 60,000 b/d. We will be able to deliver feedstock once the Sabzab-Rey pipeline becomes operational.”

Noting that good work had been done with regard to quality, he said: “We’re trying to bring the Isfahan refinery’s RHU project into operation under the 14th administration.”

4-Gas Flaring Down to 3 mcm/d

Gholam Abbas Hosseini, the acting head of South Pars Gas Complex (SPGC), has said South Pars refineries have fed a total of 2,126 bcm of natural gas ever since the complex was established 26 years ago. 

He said that natural gas production and sweetening started at the second refinery of the South Pars gas field (SP2 and SP3) in 2011, adding: “By that time, feedstock receipt from South Pars platforms stood at 50 mcm/d, which resulted in the production and sweetening of 40 mcm/d of natural gas. The figure has now reached 613 mcm/d that is processed at SPGC’s 13 refineries.”

Hosseini said more than 130 bcm of gas had been received from platforms since the beginning of the current calendar year, supplying 113 bcm of sweetened gas for national trunkline.

He also referred to other products supplied by SPGC in the current calendar year, saying: “Over this period of time, more than 1.1 mt of ethane, 139 million barrels of condensate, 1.9 mt of propane and 370,000 tonnes of sulfur have been produced at SPGC refineries.”

Regarding feedstock supply to petrochemical plants in the Pars Special Economic Energy Zone (PSEEZ) and the Persian Gulf Star Refinery, he said that during the first seven months of the current calendar year, more than 2.2 mt of feedstock has been supplied to PSEEZ petrochemicals and more than 100 million barrels of condensate to the Persian Gulf Star refinery.

Hosseini said overhaul of all SPGC refineries was carried out during six months, adding: “The main objective behind the overhaul was to cover all necessary items for production and engineering in order to ensure the stability of gas production in winter with the focus being on compliance with safety requirements.

“During the current calendar year’s overhaul of South Pars refineries, more than 22,000 devices including fixed equipment, valves, electric equipment and instruments were inspected, repaired, renovated and upgraded during 189 days to boost efficiency,” said Hosseini.

“As short-term projects are implemented by year-end for flare gas reduction, 12 refineries of SPGC would be experiencing a lower 1,200 mcm gas flaring compared with two years ago,” he said.

“Short-term projects for flare gas reduction made good progress at 12 refineries of South Pars last calendar year and we expect flare gas to be down from 8.6 mcm/d to 5.3 mcm/d by the end of the current calendar year. The figure is currently at 7.4 mcm/d,” he added.

Hosseini said: “As flare gas sales projects end, we will have another 900 mcm/yr reduction. Gas flaring is forecast to reach 3 mcm/d.”

5- 2 bn Liters of Oil Products Distributed in 6 Months

Ali Ahmadipour, CEO of Iranian Oil Pipelines & Telecommunication Co. (IOPTC), has said that a total of 2 billion liters of gasoil, kerosene and fuel oil was distributed during the first half of the current calendar year.

Regarding IOPTC’s readiness to help winter fuel supply, he said: “We have no restrictions and the entire pipeline network is running at good capacity.”

Ahmadi-Pour said that 11 new power plants had to be connected to the national distribution network. Among them, the Neka power plant became operational in 2022, the Azarakhsh Power Plant in Ali-Abad came online by June, the Khorram-Abad Power Plant in Lorestan in August, and the Sarv Chadormalou Power Plant in Yazd in September. These plants along with the Kashan power plant are expected to be connected to the national distribution network.

“The pipeline for connecting the Kashan power plant to the pipeline network has been built, which would come online by November 2024. The pipeline for connecting the Hengam Power Plant in Bandar Abbas is in the stage of agreement, while feasibility studies are under way for a pipeline to connect the Aisin power plant to national pipeline network,” he said.

“The Samangan power plant in Sirjan will be connected to the national pipeline network via a 2,650-meter long pipeline. It is to be put out to tender soon,” said Ahmadipour.

“The project for connecting the Shariati power plant in Mashhad on a 14 km length is in the process of land acquisition. We also predict the Lushan power plant in Gilan to be connected to national pipeline network by the end of the current year to early next calendar year. The Taban power plant in Yazd is also among power plants to be connected to the network, for which a tender round is expected soon,” he said.

He said that 33 power plants were connected to the national oil pipeline network, adding: “The Kashan, Hengam, Aysin and Samangan power plants will be connected to national pipeline network by the end of the year and most probably the Shariati, Kashan and Taban power plants would be connected next calendar year.”

“IOPTC has provided financing for these projects. Totally IRR 7 billion will be invested in them,” he added.

Ahmadipour said saving product transport costs, stability in distribution particularly during cold seasons with restricted access to tankers, preventing distribution outside the network and upgrading environmental impacts are among advantages of connection to power plants in light of imbalance conditions.

He said that connecting 11 new power plants to the pipeline network would dispense with the need for 16,000 30,000-liter tankers plying roads in the country. That would save more than IRR 30,000 billion in costs.

6-Petchem Sector to Optimize Gas Consumption

Hassan Abbaszadeh, CEO of National Petrochemical Company (NPC), said the petrochemical industry would consider implementing eight projects aimed at saving on gas consumption.

“The petrochemical industry is currently in a situation where its downstream sector has to be developed. Therefore, feedstock supply and implementation of the final links of the industry are envisaged to prevent imports,” he said.

He added that the private sector would largely contribute to the 8% economic growth rate instructed by Supreme Leader Ayatollah Ali Khamenei, as the pace of implementation of private projects is higher.

Restrictions on gas feedstock for the petrochemical industry would have no impact on downstream industries as these restrictions apply to methanol, urea and ammonia plants.

“Only 9% of national gas production goes to this industry, half of which is consumed at utilities and 4% is fed to petrochemical units,” he said. “Of total sweet gas production in the country, 46% is consumed by domestic, commercial and industrial consumers and 30% is consumed by power plants whose output is low.”

Abbaszadeh laid emphasis on the necessary of energy efficiency, saying: “Currently with increased gas consumption in the country with the advent of cold season, feedstock supply to petrochemical plants has declined, which would largely impact hard currency generation.”

He said that eight gas consumption saving projects were underway by the petrochemical industry to prevent application of gas restrictions on the petrochemical output.

The Zagros petrochemical plant has announced it would invest about IRR 20,000 billion in energy efficiency. Talks have been held with the Ministry of Petroleum and an MOU is expected shortly.

“We should not export unprocessed polymers as much as possible and we have to convert them in order to generate more value from their export. We have to establish some units in the polymer industry to be able to change grades, and manufacture necessary products,” said Abbaszadeh.

Adeli: Iran Promoted GECF Standing

In the run-up to the 26th ministerial meeting of Gas Exporting Countries Forum (GECF) member states, “Iran Petroleum” interviewed Mohammad Hossein Adeli who served as the Forum’s secretary general for two terms, from 2013 to 2017. Adeli, a seasoned diplomat and a famous economist, explains the GECF developments.

Would you please tell us about the formation of the GECF and its organization?

The idea of establishing a forum comprising gas-exporting countries to serve their shared interests was raised when gas was recognized as an international fuel. The fact is that until around the 1980s, gas was mainly seen as a domestic fuel. However, due to international trading, it turned into a global fuel and commodity. The major gas exporters were Russia and a few African countries like Algeria and Nigeria. By that time, there was no talk of any union, group, or organization to export gas. Due to measures taken by OECD countries to establish IEA and use their markets as leverage in the 1980s and a variety of issues like sanctions imposed on Iran, the idea was brought about in the 1990s for some gas exporting countries like Iran, Russia, and Qatar (then a nascent exporter) to establish this forum.

How important was the GECF to Iran? And why?

Iran had just begun exporting gas to Turkey and was interested in extending it to other countries. In light of Iran's economic prosperity in the early 2000s, the idea was to turn the country into an energy hub with gas serving as a key product to be traded. To that effect, the idea was raised in Iran and was consulted with some leading exporters like Russia and Qatar who welcomed it. Soon after, Venezuela Malaysia, Indonesia, and Brunei joined the group. When Mr. Bijan Zangeneh was minister of petroleum, six gas exporters came together in Tehran. I remember well that the idea was born there until in 2003 the GECF was officially formed. However, it was only eight years later that GECF member states decided to transform it into an official international body like OPEC and IEA. GECF commenced its operations as a Forum in 2010. The GECF was recognized as an intergovernmental, international Forum with its Secretariat based in Doha, Qatar. A Secretary-General was named and a statute was adopted. Any country willing to join the GECF had to obtain its parliamentary approval and pay its annual contribution to the GECF. Therefore, we can say that the GECF officially began its organized work in 2010 with its first secretary-general from Russia.

How influential was Iran in the GECF formation?

Iran was instrumental in both the idea of GECF establishment and its formation. As the world’s second-largest gas reserves holder, it found itself in a position to bring about such an idea which was welcomed. Specifically in the late 2000s, gas was becoming a largely important international issue, and even the years following the GECF’s establishment are seen as the Golden Age of gas. The reason is that numerous countries turned to buying gas as a clean fossil fuel and less polluting energy carrier compared with coal and oil. It was then the proper time for a country like Iran to play its role. Other countries like the UAE, Oman, Egypt, Libya, Nigeria, Algeria, Equatorial Guinea, and some Latin American states like Venezuela, Trinidad & Tobago, and Bolivia joined the GECF. Countries such as the Netherlands, Norway, and Peru, joined as observers.

How was GECF reflected internationally?

In the beginning, gas consumers who were worried about the possible emergence of a gas cartel embarked on a propaganda campaign against it, saying it was a cartel meant to control gas supply with a view to increasing gas prices by manipulating supply. As a result, some countries that had joined the GECF at the beginning started worrying about their ties with consuming nations and gradually distanced themselves from the GECF. Nevertheless, GECF gradually proved itself as a viable Forum, not a Cartel, to secure the common interests of gas exporting countries.

Did the GECF founders follow such objectives, i.e. supply and price management?

No, ever since a Statute was adopted for the GECF in 2009, the Forum was never supposed to control prices through supply management. GECF actively engaged in monitoring developments of the global gas market and by developing various analyses helped the members follow the right path in their gas policies. In total, the

GECF had 13 member states with 4 observers. The Forum founded an administrative form under the tenure of the first secretary-general.

Let’s talk about your tenure when you were elected secretary-general as an Iranian. What changes did the GECF experience that time around?

As a Secretary-General, I faced many challenges while attempting to promote GECF's standing internationally. Representatives of many countries were reluctant to accept changes and some were not familiar enough with the functions of such bodies. To give you an example, I had a tough time with them to convince them that GECF should establish regular consultation sessions with other international energy organizations. On the other hand, to participate in energy international events, we often had to work hard to get their approval. In general, I should say that the GECF found a new content shape during my tenure as secretary-general. Under the second secretary-general, GECF emerged as a credible international gas organization with reliable views and analysis to be reckoned with.

Could you give examples of content activities?

I should recall that a few existing international energy organizations exercised their influence through a lever. For instance, OPEC’s lever is oil production management, affecting prices and the oil market by managing production and supply. Consequently, any country with a higher share would be more influential. Another energy body is the IEA which is focused on consumer interests. By giving various accounts of the energy market on periodical accounts of the energy market, it proved influential. Wielding this lever, it sets lines for the energy market and decides policy and strategy. It is also influential due to its member states that are energy buyers and account for the bulk of energy purchase and therefore they are key players on the demand side. Given the influence of these organizations, we initially thought it was impossible to manage production and supply and become as influential as OPEC. Therefore, we decided to work hard and monitor all developments in global gas markets, analyze them, and produce reliable accounts for our member countries. In this way, we would enable them to make the right decisions at the right times. In addition, by providing analysis of the future developments of energy and gas; GECF could influence the strategies of member countries properly and in their best interests.

In this way, we introduced many initiatives to materialize all the above goals. We embarked on the development of a global gas model that ended in the production of GECF Outlook. This is the most important product that GECF produces every year. I could issue the first edition in 2016 internally for the members to consider and the second issue was published in 2017 publically. Since then GECF Outlook has been annually published and is used globally. This is the most authentic account of future gas markets that can be used by the gas market players. I also initiated a Gas Daily Brief that is limited to member countries. This is a daily issue reflecting gas market developments on a daily basis. It is issued at 10.00 am Doha time and is transferred to mobile phones of all Ministers of member countries.  I also initiated a monthly short-term market analysis and offered it to member countries for their review and decisions. I reorganized the administrative chart of the secretariat to establish a specialized department for data and information services and a unit for environmental studies and monitoring the relations between the climate change the energy sources. The data department was to collect prime data from member countries and secondary data from reliable sources.  This department produces a statistical Bulletin every month for member countries. The environmental unit is also active in updating GECF on climate change and alternative energy sources and their developments.

I also initiated a monthly lecture series organized and held at the secretariat headquarters with energy company executives, Ambassadors, and senior diplomats of the diplomatic corps and the media. This event was largely welcomed by the community and could send our messages all over the world not only by the media but also by the diplomats and the energy companies’ executives.

I also made extensive relations with other international organizations. I joined UNFCCC and since 2016 GECF has been participating in the annual meetings as an observer. I also initiated seminars before the GECF summits or otherwise ministerial meetings where we could discuss gas and energy market developments with all players in the field. In the last year of my tenure, the GECF Gas Research Institute (GRI) was established. The idea of GRI establishment had been proposed by Algeria from the beginning of the GECF activity and has been pending since. Last but not least I had the honor to organize two summits of the GECF heads of states, in Tehran and Bolivia.   I am happy that all my initiatives are still in place and GECF officials are following the steps with more vigor and quality.  

Have you accordingly managed to remove ambiguities about the GECF and prove that it is not a cartel?

The question on the

international scene was whether the GECF intended to increase prices by limiting supply. We were even accused of trying to become a cartel and from time to time, some consumers were looking at us as a cartel. On the other hand, sometimes we were dubbed as gas OPEC by the Media. This label would give GECF a negative connotation by which some would deterred from cooperating with GECF. It would also pave the way for legal action in the case and in time, it was needed. I recall my conversation with the chief representative of an international energy company when I asked him why he did not attend our monthly lectures event. He replied that GECF may have a cartel nature. Their legal department from Europe had warned them against attending the lecture series at our headquarters. However, I am happy that the way GECF has conducted its affairs has not left any room for such manipulations. But these conditions were eased ever since I took over as secretary-general.

Why isn’t it possible to define an OPEC-style role for the GECF?

The nature of the gas market differs from that of the oil market. Oil has a single global market with global supply and demand. Therefore, its supply management would be easy. Gas has a local and regional market. This means that gas consumption is mainly domestic with exports limited to some regions. For instance, Henry Hub is the reference for natural gas pricing in the US, varying $2-3 per MMBtu. In Europe, more markets such as TTF and NBP are active with average prices of $9-11 per MMBtu. In East Asia, there is another hub where gas is supplied at higher prices than the other regions. Players in each market are different and they cannot be controlled altogether and have a cartel-based approach. Therefore, other instruments are needed. That is why GECF founders from the very beginning named it a “Forum”.

How do you assess the GECF’s track record? Has it met the targets set at the beginning?

I think that the GECF has grown significantly, but it has more room to improve. I am confident that the consumers are very vigilant of the moves by the GECF members, as GECF accounts for over 60 % of global supply. The biggest player of gas was Russia and by the war in Ukraine, its role in the market diminished significantly. Qatar is also a big player in the LNG market. It has tried to maintain its market share in competition with Australia and the United States. Gas has been the subject of more attention because of COP approvals. It will continue to attract more attention in the future, as well.

Have you predicted such developments in GECF outlooks and analyses?

Some of the important developments such as the emergence of Australia and the US as big exporters of gas have been predicted by GECF in the past years. GECF also predicted that new players from Africa would be emerging. We have followed closely all investments and developments of gas fields in all parts of the world. However, we never predicted the war between Russia and Ukraine and the Russian exit from the Europe gas market. This is absolutely a political issue in which GECF would not interfere.

What opportunities will the 26th GECF ministerial meeting present Iran with?

Hosting the 26th GECF ministerial meeting would be a good chance for Iran to promote its standing in the gas industry. But other conditions should be also prepared. When a ministerial meeting is held in a country, there should be arrangements for the presence of investors and oil and gas companies. For instance, a gas show could be held to let Iran present investment opportunities. Therefore, we need investment in the gas sector. The GECF ministerial meetings and summits would attract attention to investment in Iran, but we should keep in mind that the political conditions prevailing in the region are also important. This ministerial meeting would be a good opportunity and we should endeavor to make the most of it for the attraction of cooperation and investments.

Do you think that GECF will further its role internationally?

I think that GECF member countries are all influential states, as well as good players in the gas market. Today, GECF has a good reputation, and a professional executive from Algeria Eng. Hamel is leading it. Gas is a very important source of energy during energy transition. This period is not a very short one, as IEA or some consumers claim. Therefore, there is much room for investment and development. I hope that GECF staff could be so professional that in addition to the secretary general could participate in international fora and reflect on its views.

What are the significant developments in the global gas market over recent years?

Gas has experienced many developments in recent years. The bulk of gas exports were by pipeline. In the 2000s, LNG production increased in Qatar and some other countries, giving rise to new developments. LNG had only a 10% share of gas exports, but jumped to 15% and most recently to nearly 40% very quickly. Therefore, LNG changed the geopolitics of the gas market. Gas export was no longer dependent on transit nations. For instance, in the case of the Iran-Pakistan-India pipeline, the Indians were against transiting their gas purchase through Pakistan. Now by LNG, they can buy LNG without being transited through a third country. The emergence of LNG changed the gas trading policy, which was a milestone. It gave rise to a new balance in the volume of pipeline and LNG exports politically and geopolitically. For instance, Europe once depended on Russian oil and gas for 50% of its supplies, but LNG empowered it to reduce its dependence. We also witnessed the shale gas revolution that enabled the US, which was not a key oil and gas player, to become the top oil producer in the world and LNG exporter. In parallel, the US developed its LNG industry. Australia also joined rival Qatar in the LNG market, thereby changing players in the energy sector. Russia, Nigeria, Angola, Algeria, and Egypt also joined the club of LNG exporters. Another development is the emergence of renewables that are fiercely competing with gas. Although renewables are still facing many challenges to become a global energy source and it is still limited to developed countries, it has put new challenges to the gas market in the future.

Mutual Cooperation for Natural Gas Development

Afshin Javan

National Representative, OPEC, GECF

Global demand for gas maintained its positive growth in 2023 when it grew 5.1% year-on-year to 59 bcm a year. It is forecast to grow 1.2% annually to reach 87 bcm this year. Asia’s strong demand growth continues to boost gas imports, while increased exports from North America and the Middle East are the main drivers behind global supply growth. Although global gas markets have reeled from record fluctuations and unstable prices in 2022 to experience relative stability, they remain fragile in light of existing concerns about energy security coupled with geopolitical factors.

Coal use by some countries smashed greenhouse gas (GHG) emissions record in 2023; however, it is noteworthy that shifting from coal to natural gas is an easy and economical way to slash greenhouse gas emissions by half. That could give a specific meaning to the role of Gas Exporting Countries Form (GECF) member states in the energy transition.

Such steps should be taken in parallel with sustained efforts for the expansion of renewable energies, enhanced productivity, and broadening the use of all zero-emission and low-emission energy resources that are technologically and economically viable. It would also be important to take into consideration the significance of low-carbon technologies like biomethane, hydrogen, and carbon capture technology. Currently, biomethane production is concentrated in North America, Europe, and the emerging markets of China and India. 

The relatively new carbon capture and storage technology (CST) is key to lengthening global demand for gas in light of the zero-carbon target set for 2050. With current technologies, it would be possible to capture and store only 50 mt a year of carbon dioxide. The main obstacle in the way of development of this technology results from its high cost although massive investment is largely expected in this technology very soon.

The current biomethane and hydrogen production levels are not significant. Biomethane constitutes about 1% of the global natural gas supply and hydrogen supply remains low. Carbon capture capacity is expected to grow 42% year-on-year, which is an objective pursued by the GECF.

Geopolitical Crises Impact

Another issue to be taken into consideration is geopolitical crises and tensions transpiring in the Middle East or the ongoing Russia-Ukraine war, which have affected the global gas market. Sanctions imposed on Russia have pushed European nations to seek alternatives to supply their energy needs. Hence, increased LNG imports and development of energy ties with other countries.

Climate changes and increased environmental pollution in recent years have shifted gas market attention to environmental issues and sustainable development more than before. That is why all countries are seeking to reduce dependence on fossil fuels while increasing the renewable share of their energy mix. Natural gas is known as a clean fuel in this process that can help cut greenhouse gas emissions.

Due to the daily growing importance of gas, investment in gas infrastructure, including pipelines and LNG facilities, will continue in 2024. Such investment enables producers to supply their domestic needs, export gas and diversify their energy sources.

Natural gas is known as a source with a minimum negative impact on the environment. At a time when the world is looking to reduce dependence on fossil fuels and scale back on greenhouse gas emissions, natural gas is seen as a bridge fuel that would facilitate the transition to renewable energies while guaranteeing energy security.

26th Ministerial Meeting

The forthcoming GECF ministerial meeting would represent an exceptional opportunity to address challenges and explore opportunities in the natural gas industry against the backdrop of the energy transition. This meeting shows the significance of cooperation in natural gas development as a clean and sustainable fuel. The GECF is an intergovernmental organization that has set a framework for the exchange of experience and information by its member states.

The upcoming meeting in Tehran would be an opportunity for leading gas exporters in the world to come together. GECF member states are seeking to work out a mechanism for meaningful dialogue between gas producers and consumers to improve supply and demand stability and security in global gas markets.

GECF regroups Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, the United Arab Emirates and Venezuela. Angola, Azerbaijan, Iraq, Malaysia, Mauritania, Mozambique, Peru, and Senegal hold observer status.

The GECF therefore enjoys a dominant position in global gas markets and wields clout with international energy bodies. GECF members hold 69% of global gas reserves, account for 39% of global gas production, and supply 40% of global gas exports. Furthermore, they account for half of LNG exports across the globe.

I would like to highlight the GECF’s long-term strategy offering a pattern for joint work by GECF member countries. This strategy is indicative of GECF members’ common interests, defining the perspective and mission of the GECF and expressing its strategic and prioritized objectives.

The GECF’s long-term strategy takes into consideration the significance of natural gas for the global economy, multidimensional changes impacting on global gas market as well as challenges and

opportunities associated with natural gas demand growth.

GECF LTS

The second edition of the GECF’s long-term strategy (LTS) was adopted during the 24th Ministerial Meeting of the forum in Cairo, Egypt, on 25 October 2022. The first edition was adopted in October 2017 during the 19th Ministerial Meeting hosted by Moscow.

The GECF’s LTS revises its objectives every five years. To that effect, the specially convened High-Level Working Group (HLWG) drafted the LTS.

“The development of the natural gas industry depends highly on the energy landscape, which has been constantly evolving in recent years,” reads the document. “The global economy enters into a period of instability and uncertainty, with the pace of the post-COVID-19 recovery losing momentum due to escalating geopolitical tensions, soaring energy prices, rising inflation, tightening financial conditions, and supply-chain disruptions. This evolution has a direct impact on the gas markets. Although natural gas has proved its resilience and cemented its role in attaining global energy security, the industry has been challenged by years of underinvestment, policies, and pressures to limit financing for gas projects, as well as the misguided narrative presenting natural gas as not consistent with the combat against climate change.”

The document continues: “Natural gas plays a pivotal role in achieving the 17 UN Sustainable Development Goals (UN SDGs), fueling economic growth, expanding social prosperity, and contributing to the protection of the environment. In particular, natural gas is crucial to achieving SDG #7, which aims to “ensure access to affordable, reliable, sustainable and modern energy for all”. Furthermore, intense scrutiny on the contribution of the energy industry to climate change leads to global pressure for the reduction of greenhouse gas (GHG) emissions, through the shift to cleaner energy sources, and investment in decarbonization technologies such as carbon capture, use, and storage. Therefore, natural gas has a major role to play in the ongoing energy transition, being the cleanest-burning hydrocarbon and ideal partner to intermittent renewables.”

A look at the GECF’s vision, mission, and strategic goals shows that sustainable development and public access to this source of energy are among the key objectives.

The Vision of the GECF is “to make natural gas the pivotal resource for inclusive and sustainable development”.

The Mission of the GECF is “to shape the energy future as a global advocate of natural gas and a platform for cooperation and dialogue, with the view to support the sovereign rights of Member Countries over their natural gas resources and to contribute to global sustainable development and energy security”

The Vision and Mission of the GECF are reflected in four (4) strategic goals: 1) Expand the role of natural gas in sustainable development, in the context of economic, social, and environmental progress; 2) Promote fair value of natural gas; 3) Advance modern technologies in the natural gas industry; 4) Strengthen the international positioning of the GECF as a global platform for energy dialogue.

Priority Objectives are defined for each Strategic Goal. They include Priority Objectives for Strategic Goals aimed at expanding “the role of natural gas in sustainable development, in the context of economic, social and environmental progress” and enhancing “the role of natural gas in fostering global economic development and social progress” as well as advancing “natural gas as an environmentally-friendly, affordable, reliable, flexible, versatile, and abundant energy source, capable of mitigating climate change” and promoting “energy policies favoring natural gas”.

To promote the fair value of natural gas, the document would “enhance monetization of natural gas reserves through the production of higher value-added gas-based products and reduction of production costs”.

Fair and just prices are also taken into consideration among prioritized objectives. The document will “seek fair and stable prices on the global gas market and efficient contractual practices in the international gas trade to ensure sustainable export revenues and continued investments in the natural gas industry”.

Another priority objective for the strategic goal is to “strengthen the international positioning of the GECF as a global platform for energy dialogue” by reinforcing “recognition as the global voice for natural gas advocacy in the energy industry”.

Points to Follow

During the GECF 7th Summit in Algeria, the final declaration recalling the Declarations of the GECF Summits held in Doha, the State of Qatar, in 2011; Moscow, the Russian Federation, in 2013; Tehran, Islamic Republic of Iran, in 2015; Santa Cruz de la Sierra, Plurinational State of Bolivia, in 2017; Malabo, Republic of Equatorial Guinea, in 2019; and Doha, the State of Qatar, in 2022, reaffirmed the absolute and permanent sovereign rights of Member Countries over their natural gas resources; commitment to the GECF objectives and our determination to strengthen the Forum’s role while emphasizing its contribution to global energy security, equity and sustainability; endeavor to efficiently manage and encourage the utilization of the natural gas resources of Member Countries, aiming to promote sustainable development that benefits both producers and consumers; the importance of cooperation and coordination among Member Countries for the development of research, innovation, knowledge and technology transfer related to natural gas, as well as for the

sharing of best practices and promoting capacity building; and support for robust and meaningful dialogue among producers, consumers, and other relevant stakeholders, with a view to ensure the security of both demand and supply, foster market stability, and advocate for open, transparent, unhindered and non-discriminatory natural gas markets.

Meanwhile, several points have been highlighted concerning the essential role of natural gas, some of which are as follows:

• The fundamental role of natural gas in achieving the United Nations Sustainable Development Goals, satisfying rising global energy needs, and securing universal access to affordable, reliable, sustainable, and modern energy for all;
• The contributions of eco-friendly natural gas in addressing climate change challenges, and its importance in achieving just, equitable, orderly, inclusive, and sustainable energy transitions, and the risks and challenges to the natural gas market derived from the geopolitical and economic situation;
• The paramount importance of security of natural gas demand, transparent non-discriminatory legal and regulatory frameworks, and predictable energy, trade, fiscal, and environmental policies in natural-gas-importing and -transit countries;
• The need to adopt innovation-led practices and scientifically-guided research to enhance the significant role of natural gas in improving energy access and reducing energy poverty;
• The important role of natural gas in the value chain of the petrochemical and chemical industry in general, with a wide range of key end markets to achieve the United Nations Sustainable Development Goals, including the production of fertilizers to ensure global food security and eradicate hunger.

The Declaration also reiterated “support for all countries in their relentless fight against energy poverty and in their endeavors to bring prosperity to their people, as well as in the exercise of their fundamental rights to develop their energy resources”.

A key point in the Declaration was its “condemnation of all unilateral economic restrictions undertaken without the prior approval of the United Nations Security Council, and any extraterritorial application of national laws and regulations against GECF Member Countries that adversely impact the development and trade of natural gas and jeopardize the security of natural gas supply.”

GECF Key Role

Sitting atop huge natural gas reserves, GECF member states play a key role in the global energy market. Owing to their reserves, they can help supply the energy needs of other countries while improving global energy security and stabilizing market prices.

GECF states hold significant natural gas deposits. For instance, Iran, Russia, and Qatar are known as three large owners of gas reserves in the world. These reserves would contribute to the natural gas supply, not to mention facilitate LNG exports and supply global energy needs.

In light of challenges caused by climate changes and the need for sustainable energy resources, GECF member states are required to move towards the development of natural gas as a key portion of their energy strategies, in which case they would have to invest in infrastructure, upgrade production, and extraction technologies and promote the use of natural gas in the industrial and transport sectors.

The development of joint markets is an issue of common interest between GECF member states, which can materialize through signing trade agreements for financial agreements to facilitate gas transactions between producers and consumers and setting up fair and sustainable pricing frameworks in the global natural gas and LNG market.

However, environmental concerns should be also addressed. For this purpose, cooperation in adopting environmental and sustainable policies to undermine the negative impacts of natural gas production and consumption and sharing experience in resource management would be instrumental.

One option for upgrading energy security would be to set up joint mechanisms to safeguard energy security against geopolitical tensions and crises in parallel with improving diplomatic ties between producers and consumers. Improving diplomatic ties between gas producers would require the adoption of various strategies including multilateral cooperation, information sharing, and confidence building.

The key point is that a variety of factors including price fluctuations, global prices, geopolitical challenges, and environmental issues affected the gas market in 2023. Therefore, given the present challenges faced by both producers and consumers, international cooperation and the development of sustainable technologies should continue in favor of the achievement of energy security and sustainability.

Improving energy security in gas-producing countries requires a multilateral approach and international cooperation. By investing in infrastructure, developing new technologies, and strengthening regional cooperation, these countries can achieve sustainable and effective energy security.

Improving diplomatic relations between gas-producing countries is one option to develop international cooperation, which requires a comprehensive and collaborative approach involving strengthening international forums, information exchange, and economic cooperation. With this approach, producers can achieve sustainable development and global energy security.

The 26th GECF ministerial meeting in Tehran would be a good opportunity to emphasize the significance of cooperation in developing natural gas as a clean and sustainable fuel.

By using their resources and upgrading their trade ties, member states may play a key role in building the future of energy. Achieving these common objectives would require all these countries to push ahead with continued and effective cooperation while benefiting from commercial and technological opportunities.

Iran’s Gas and Growing Global Demand

Rokneddin Javadi

Ex-CEO, NIOC

Iran is the world’s second-largest proven natural gas reserve holder (equal to 33 tcm and 17% of the world’s proven natural gas reserves excluding the shales and giant gas hydrates in the Gulf of Oman and possibly Persian Gulf and the Caspian Sea), producing about 250 bcm and has a potential to supply domestic market at this level of production for the next 130 years excluding discoveries. Subject to further investment in producing gas fields and enhancement of them, Iran could double the supply of natural gas to domestic and global markets which could be delivered either as pipeline gas to neighboring countries or as Liquefied Natural Gas (LNG) to the global market. 

It is necessary to apply the new methods to enhance the productivity of the reservoirs in order to prevent further decline in current production. Also, it has to be taken into consideration that currently there are more than 20 gas fields have been discovered with more than 8 tcm of gas deposits, whose development can add more than 500 mcm/d to Iran’s gas production capacity.

On the other hand, under the present circumstances, we are faced with energy supply shortages on a daily basis while official data show that at least 70% of Iran’s energy needs are supplied by natural gas. The best way out would be to enhance energy efficiency, which would require saving on energy consumption.

Iran’s current hydrocarbon production stands at 9.25 million barrels of oil equivalent (mboe), 6.7 million ballers of which are consumed domestically and the rest destined to be exported.

Such imbalance has occurred for a variety of reasons. However, there is one urgent issue on which most energy experts agree unanimously. That is extremely low energy efficiency and unfavorable energy intensity index of the country.

To raise the energy intensity of the country to at least the global average level and meet the demand of the country comfortably, domestic consumption of Natural Gas has to be decreased by 40%. Initiating such a move shall release 2.7 mboe of which almost 70 % shall be natural gas of almost 440 mcm/d and next to meeting domestic demand could be exported to the global market. Reducing domestic consumption of natural gas of this magnitude through the enhancement and making them partly available for export, while turning the status of the country to a new stand in the gas global market, would affect the environment through the reduction in emission of greenhouse gasses (GHG) positively.

Studies have shown that reducing consumption through Enhanced Efficiency would be less costly than investing in new producing fields.

Having considered this fact, any investment, excluding destined for export, for the development of new gas or oil fields shall not be justifiable if such Energy Efficiency not be leveled out with the average global standard.Presently, technologies and know-how for Enhancement Recovery are available worldwide and could be employed by the relevant authority.  Employing advanced available technologies for enhancement of the production of producing field and domestic consumption while satisfying a major part of the increase of the domestic demand, makes considerable quantity available for export. 

Iran with its vast territory bordering 15 countries of which 10 could rely on natural gas imports from Iran. Moreover, with more than 6,000 km of onshore and 2,700 km of offshore border in the south, easy access to high seas, and massive reservoirs, Iran enjoys great potential for supplying global gas needs that grow every day.

Meantime, due to its specific geopolitical and geographical conditions, Iran may facilitate gas swaps and transit for the countries in the region while serving as the regional hub for gas trading.

Upgrading strategies for attracting investment and technical know-how to develop production and trade for a strong presence in the global gas market is a must.

A review of the policies adopted in previous years may be a good start for planning and shortening access to the lucrative gas market in international trading.

Gas Pipelines

1. Sweet gas pipeline to Pakistan: The Export pipeline is constructed on Iran’s territory and a sales and purchase agreement has been signed with Pakistan.
2. Gas pipeline to Turkey: The existing agreement is set to expire soon and during renewal and extension talks, increasing the volume and also swap and or transit to Europe should be taken into consideration.
3. Sweet gas pipeline to Kuwait: Preliminary studies have been carried out and both sides have agreed on the term sheet.
4. Gas pipeline to Oman: Preliminary and basic studies have been conducted and the roadmap has been agreed upon.
5. Gas pipeline to Iraq: It is necessary to study how to boost capacity and prolong the supply contract period.
6. Iran- Republic of Azerbaijan or Iran-Turkey gas pipeline to Europe (the Nabucco pipeline): Full studies including market review, gas supply sources, route, legal aspects, basic design, and cost estimate have been done. Despite the commercial viability of the project, it was stopped due to circumstantial conditions. It has to be considered anew.

Using the maximum capacity of gas export to Turkey and Iraq is to meet the urgency of higher demand. Central Asian gas transit and swap may be also considered a mid-term solution.

LNG

1. Pars LNG: This project was signed between the National Iranian Oil Company (NIOC) and a French Total-led consortium including Malaysia’s Petronas to produce sour gas from Phase 11 of the South Pars gas field at the rate of 56 mcm/d for the production and export of 10 million tonnes a year of LNG. Basic design was done, products were marketed and even long-term agreements were discussed with numerous buyers, some of which concluded and initialed.
2. Persian LNG: This project was signed between NIOC and Royal Dutch Shell-led consortium including Spain’s Repsol to produce sour gas from Phase 13 of the South Pars gas field at the rate of 56 mcm/d for the production and export of 10 million tones a year of LNG. Basic design was done, products were marketed and even long-term agreements were discussed with numerous buyers, some of which concluded and initialed.
3. Iran LNG: This project was signed between NIOC and a BP-led consortium including British Gas (BG) to produce sour gas from Phase 12 of the South Pars gas field at the rate of 56 mcm/d for the production and export of 10 million tones’ a year of LNG. Basic design was done, products were marketed and even long-term agreements were discussed with numerous buyers, some of which concluded.

The above LNG projects were eventually shelved in the mid-2000s following the pullout of the foreign partners due to unlawful imposed sanctions. Then NIOC decided to continue alone and spent $2.5 billion on the NIOC LNG project. It was about 30% completed before being stopped due to unjust sanctions.

To accommodate a reliable and smooth supply of gas in the long run, gas production from Shale gas and Hydrate gas sources and reserves is highly recommended to be planned.

Policies concerning planning, design, construction well, and gas delivery to LNG units and partnerships should be reviewed and probably be revised.  As specified here above, political and legal environments need to be amended in order to attract foreign investment, as well as latest technologies.

Rivalry Outlook: Natural Gas vs Coal

Mehran Amir-Moeini

Senior Energy Expert

Energy is a basic need for production and services, welfare, and social well-being. Hardly can one imagine life without access to such resources. The scarcity of fossil fuels and the role and importance of energy in economic growth and development have led countries, especially consumers, to pay special attention to it. 

Economic growth and energy demand are linked, but this link’s strength varies between regions and their phases of economic development. Economic development and people’s standard of living in a certain region strongly affect this relationship. In general, advanced economies with higher living standards experience higher per capita energy consumption, but they tend to keep per capita energy constant or see it grow very slowly.

Policy Revision

In the aftermath of the first oil shock, developed nations revised their energy policies. These policies, which were recommended to member countries after the establishment of the International Energy Agency (IEA), included the development of domestic energy sources, mainly coal, fuel tax hike, fuel substitution, development of nuclear power plants, investment in renewable energies, development of technology and increasing the efficiency of energy-consuming equipment. Since the beginning of the third millennium, increased environmental concerns, climate change, global warming, as well as peak oil talks caused consumers, especially IEA members to look for alternative sources, embrace clean fuel and renewables, and save on energy consumption. Moreover, industrialized countries, especially European states, have tried to oblige other countries to use clean energy such as solar energy or wind power generation through international treaties.

The policies implemented across the globe, especially in developed countries, caused the share of fossil fuels in the global energy supply to fall from 87% in 1973 to 79.4% in 2022. During this period, the share of oil dropped from 46.2% to 29.6%, but the share of natural gas increased from 16.1% to 22.9%, while the share of coal increased from 24.7% to 26.9%.

Therefore, in 2022, 20.6% was assigned to other energies, namely hydropower, nuclear, biomass, and renewables. Despite the high growth in the use of renewable energies, fossil energy is still considered the largest source of energy supply in the world. Although forecasts indicate a decrease in the share of fossil energy, it still has the highest share when compared to renewable and nuclear energy and hydropower.

IEA Forecasts

The IEA forecasts 2030 oil, natural gas, and coal shares to reach 29%, 22% and 22%, respectively. However, its 2050 forecasts indicate reduced consumption of fossil fuels, their replacement with renewables, and higher energy efficiency. Therefore, it predicts oil, natural gas, and coal shares to reach 26%, 20%, and 14% respectively in 2050. For its part, the Gas Exporting Countries Forum (GECF) estimates the share of these fuels at 26%, 26%, and 11% respectively in its outlook report. It considers a bigger share of natural gas in the global energy supply, while coal’s share has been reduced and renewable fuel growth would become limited.

A greater role for natural gas in the world’s energy supply is considered, and the share of coal will be reduced, and of course, the growth of renewable fuels will be more limited. In its recent outlook report, OPEC also estimated the share of oil and gas in the energy mix by 2050 to be more than 53%. Oil with 29% will have the highest share among fossil fuels.

Energy Mix Changes

Tremendous changes in the energy mix can be observed during the outlook period of 2023-2050, but oil and gas will play a vital role in the supply of primary energy. According to OPEC forecasts, the share of natural gas and coal in 2050 is expected to be 24% and 13.1% respectively. Therefore, the share of natural gas will increase by 1%, while the share of coal will be down from 25.9% to 12.8% due to alternative fuels like natural gas and renewables.

The domestic energy development policy of IEA members pushed coal to bold relief and their governments decided to support this industry by providing explicit and implicit subsidies. Therefore, despite the high pollution produced by this fuel compared to natural gas and even petroleum products, as well as the increase in the consumption of China and India, along with the allocation of subsidies to the coal industry by the United States, Australia, and European countries, the share of this fuel in the world’s energy mix increased while oil, which is cleaner than coal, saw its share decline.

The gas industry was also developed in line with the policy of finding alternatives to crude oil because its pollution was less than other fossil fuels and its price was lower compared to oil. On the other hand, with technological progress, the cost of liquefaction and transportation of natural gas, i.e. LNG, decreased drastically, and therefore we have seen and will continue to witness the rapid development of gas markets, and as a result, the share of this fuel in the primary energy mix increased rapidly.

GECF Forecasts

Since many countries are shifting from coal and natural gas for power generation, GECF forecasts reveal growing gas consumption in power generation but coal consumption would start falling as of 2026. The forum has predicted that global coal-fired power plants would reach their maximum capacity in three years. After 2026, and with the decommissioning of these power plants in the US and European markets, the development of coal-fired power plants is expected to decrease significantly and therefore coal consumption will undergo a downward trend.

On the other hand, it is 

predicted that the capacity of gas-fired power plants will experience a 53% growth during the 2020-2050 period, and by 2050, natural gas will constitute 15% of the world’s installed power plant capacity. Growth in the electricity sector is expected to occur in China, Iran, Mexico, the US, Vietnam, Indonesia, Iraq, Saudi Arabia, Brazil and Nigeria.

Such growth shows the continued importance of natural gas as a reliable and flexible energy source especially because this fuel complements the increasing share of intermittent renewable energies in the energy mix for power generation. Due to environmental concerns, the development of power plant capacities with minimum emission of pollutants plays a central role in a flexible system. Therefore, gas-fired power plants are expected to maintain their position as the main choice. Natural gas may act as a vital partner for renewable energy to ensure the stability of the electricity supply in many countries.

G7 Investment

In 2023, G7 countries confirmed their support for increased investment in natural gas in their May 2023 statement. This supportive policy was adopted to respond strategically to potential severe shortages caused by geopolitical tensions and the consequences of rising energy costs and inflation for households and businesses. Also, Japan has positioned LNG as a key transition resource, fueling the move towards a more environmentally sustainable economy. Following these geopolitical tensions, which caused a significant disruption in the supply of natural gas, Germany also focused on strengthening investment in the LNG infrastructure.

Although it is expected that the dominance of coal in the energy market will decrease, in some regions, especially regions with abundant coal resources, it will remain an important source of energy, but other regions in the world will focus on the development of renewable fuels. Over recent years, increased investment in clean energy has focused on electricity generation, especially photovoltaics and other forms of renewable energy, and electrification, especially electric vehicles and heat pumps.

According to the IEA report, if this investment trend is maintained, the conditions of renewable fuels in 2030 will be in line with one of the Announced Pledges Scenario (APS) of the Energy Outlook Report. However, there are significant investment gaps in other important sectors for the transition to clean energy. According to the IEA report, in some markets, clean energy projects are facing problems and challenges caused by cost inflation, supply chain bottlenecks, and high borrowing costs, which are obstacles to the development and growth of clean energy. Therefore, its growth rate is determined in response to policies and market drivers as well as required infrastructure. Although the IEA believes in its scenarios that the development of clean energy will lead to peak demand for coal, oil, and natural gas in the next decade, GECF and OPEC argue that the growth rate of clean energy will be more limited and therefore the peak demand for oil and gas is delayed.

Hydrogen, New Source

While green and blue hydrogen are the main sources of low-carbon hydrogen, blue hydrogen currently has a significant cost advantage over green hydrogen. Currently, green hydrogen is significantly more expensive on a natural gas equivalent basis. According to the Hydrogen Council, more than 1,000 large-scale hydrogen projects have been announced globally since January 2023.

While Europe leads with the most announced projects, North America has the highest percentage of committed investments. In North America, nearly 75% of the announced projects are blue hydrogen produced from natural gas, while the CO2 emitted is captured and stored using CCUS. Under the UAE’s updated energy strategy announced in July 2023, it has outlined ambitious hydrogen goals, including the development of five hydrogen hubs by 2050, the majority of which will be blue hydrogen.

Renewable energies may be a valuable alternative to fossil fuels as continuous sources of energy, environment-friendly and accessible. Energy transition is the permanent process of replacing fossil fuels with low-carbon energy sources. This requirement has changed the forecasts for the demand for fossil fuels and as most of these forecasts have reported, until 2050 demand for coal and crude oil will decrease, and on the other hand, with increased investments, the share of renewables in the world’s energy supply will increase.

Energy Balance

While the world is looking for a balance between energy demand and environmental sustainability, it should be noted that in the short and medium term, it is not possible to drastically reduce the share of fossil fuels in the world’s energy portfolio. Although their share in the world’s energy portfolio may decrease, consumption growth will occur. For several years, the main focus of policymakers has been on mitigating emissions through the development of renewable energy and electric cars, as if this policy would solve all the problems of global climate change. But, now the shortcomings of this approach to follow this path have been identified in practice.

These challenges include the costs of renewable energy integration, supply of vital mineral resources, power grid needs, increasing battery production capacity, increasing fuel prices, and heavy investment to replace clean fuels. Therefore, it seems that with the gradual evolution of technology, the world is moving towards the modification of the primary energy mix in the world, and therefore, according to the economics of projects, it is currently only possible to invest in renewable energy sources to meet new needs, although economically-developed countries have more capability to replace clean fuels with fossil fuels, especially coal.

Conclusion

In general, it could be argued that while natural gas is a cleaner fuel due to less carbon emissions, its economic advantages over coal have increased over recent years, and as a result, the competition between these two fuels is likely to continue. However, the future of the energy market is increasingly shaped by the integration of renewable energy sources and the development of sustainable energy technologies.

The era of energy transition in the world to mitigate carbon emissions started a few years ago, although this process is progressing slowly, with the legal requirements to use renewable energy, it will develop more rapidly. In the meantime, gas is considered an important transition fuel that can significantly mitigate the emission of GHG from coal and oil. However, there is an urgent need to increase investment in cleaner technologies such as biomethane, carbon storage, and low-carbon hydrogen.

In summary, the consumption of coal as a fuel is expected to decrease in many countries, especially developed countries, due to the harmful environmental impacts and international pressure. On the other hand, growing demand for natural gas occurs in various sectors such as power generation, petrochemicals, and transportation. Meanwhile, the development of natural gas infrastructure due to significant investment in the construction of pipelines and natural gas facilities, including LNG and CNG, will increase the supply of this fuel in global markets.

Natural gas has often been proposed as a bridge to transition from coal and oil to renewable energy sources. Its lower carbon emissions compared to coal make it the preferred option for countries looking to mitigate their GHG emissions, while still relying on fossil fuels.

Due to the development of LNG markets, natural gas can reduce dependence on a limited number of energy suppliers and thus increase the energy security of countries. Natural gas increases the flexibility of energy systems because gas-burning power plants can increase electricity production relatively faster, and therefore, complementing intermittent renewable sources such as wind and solar that produce electricity online is very important and valuable, which would bring more flexibility and stability to the grid.

Based on what was mentioned, it could be concluded that natural gas plays an important role in shaping future energy policies, especially as a transitional energy source and complementary to renewable energies. Ultimately, its long-term impact depends on government policies, technological changes, market trends, energy price fluctuations, and global commitments to climate change.

Natural Gas, a Regional Peace Tool

Shuaib Bahman

As one of the most basic needs of human society, energy is instrumental in developing international relations and political and economic ties between countries. Energy resources including oil, natural gas, coal, and renewables are a foundation for economic, industrial, and welfare development of countries. In this regard, energy trading and exchanges between countries can bring about interdependence, which would be useful in boosting cooperation and easing tensions.

Natural gas, as a strategic source of energy, plays a key role in international relations. It owes its significance not only to economic prosperity and energy supply but also to its potential to establish friendly ties and relax regional tensions.

More specifically, in a complicated and tense region like the Middle East, natural gas can serve as a tool for interdependence and reinforcement of peace. Iran’s neighboring countries, particularly Turkey and Iraq, are cases in point as they have developed ties thanks to Iranian gas imports.

Interdependence Tool

“Interdependence” is a key notion in international policy. It implies a situation where governments or political entities become interdependent due to shared needs and interests. Such dependence is often created in economic, energy, and security domains, leading to détente and increased constructive interaction. Interdependence in the energy sector would mean creating ties between producers/suppliers and consumers of energy to interact and cooperate further, which would finally reduce tensions while bolstering economic and political cooperation between countries.

In this regard, as a vital need of modern economies, energy can be a major factor in bringing about interdependence between states. Energy exporting countries depend on revenue from energy sales, while energy importers heavily depend on sustainable energy supply for economic development and supplying their domestic needs. Such reciprocal need would bring about interdependence, which would in turn give rise to closer economic and political interactions that would clear the way for regional and international peace and stability. Therefore, although political differences may impact these ties, energy interdependence would intervene as a modifier to ease tensions.

As a vital source of income, natural gas would set the foundation for such interdependence. Among gas producers, Iran enjoys a high position thanks to its deposits in place. Therefore, it may benefit from this source for economic and political ties with neighbors. For their part, gas importers would use this opportunity for supplying their energy needs and pave the ground for better diplomatic relations and broader cooperation.

Gas Supply to Turkey, a Success Story

Iran’s neighbor Turkey heavily depends on importing energy. That represents a case of gas export impact on interdependence. For decades Iran and Turkey have been broadening their economic cooperation through natural gas pipelines. Such economic interaction goes beyond simple trade ties. Iran’s natural gas is a key source of energy supply to Turkey and therefore the two nations’ ties have largely been impacted by energy interactions.

Such economic interdependence has pushed Iran and Turkey to further bolster their ties in the energy sector. As an East-West bridge due to its geopolitical position, Turkey has always sought to maintain a balance in its foreign relations. Iran’s natural gas is not only an economic factor for Turkey, but also a tool for preserving energy security and enhancing political and economic interactions.

Ties with Iraq

Another strategic neighbor of Iran, Iraq also depends largely on importing natural gas from Iran. Given Iraq’s growing demand for electricity, Iran’s natural gas largely helps that country supply its power needs. Owing to such energy interdependence, the two neighboring countries have bolstered their ties in recent years and cleared the way for further cooperation in political and economic domains.

Due to security and infrastructure issues, Iraq is faced with numerous challenges in supplying its energy needs. By supplying gas to Iraq, Iran is playing an important role in developing Iraq’s energy infrastructure. Due to this energy interdependence, Iran and Iraq have bolstered not only their economic cooperation, but also their political and diplomatic ties.

Regional Peace

As an energy supply tool, Natural gas can play a significant role in establishing peace and reducing tensions in the region. By creating mutual interdependence, gas producers and exporters can head off political tensions and differences to clear the way for peaceful interactions.

In the Middle East region where political and military conflicts have been common, energy may be used as a key element for peace and security. As a leading producer of natural gas in the region, Iran can increase gas exports to neighboring countries and bolster regional peace and stability. That would result in stronger economic ties while helping reduce political tensions and upgrading interdependence in the region.

Therefore, natural gas may serve as an effective tool for establishing peace and strengthening friendly ties between nations. Iran’s gas exports to neighboring countries like Turkey and Iraq is a successful instance of such political and economic interactions that would bring about interdependence and bolster international relations. These interactions would in addition to serving economic development help ease tensions and establish peace and security in a tumultuous Middle East region. Using energy potential, particularly natural gas, would offer one of the best solutions for interdependence and enhanced peaceful ties between nations.

GECF: A Catalyst for Global Gas Cooperation 

Fereydoun Barkeshli

Energy Market Analyst

The global gas market has undergone significant transformations over recent years. Countries' energy policies and security have shifted towards gas because of deficiencies in oil supplies, technological advances, ease of consumption, and geopolitical tensions. The recent Ukraine conflict has been a key factor in changing global gas markets and supply and demand equations.

The present article aims to address the supply and demand dynamics before moving to other important factors affecting the global gas markets.

Gas Supply Dynamics 

In the year 2023, the major natural gas producers and suppliers were the United States of America, Russia, Qatar, Australia, and the Islamic Republic of Iran. US was the largest producer, accounting for 25 percent of world gas production, mainly thanks to emerging shale gas in the country. The US shale gas has significantly enhanced production capacity with output reaching approximately 100 billion cubic feet per day.

However, it is noteworthy that America is also a major player in the international LNG market. In 2023, the country exported 12 billion cubic feet of LNG mainly to Europe taking benefit from the disruption of supply from Russia and rising demand in some Asian markets.

Gas Demand Dynamics 

World gas demand in 2023 stood at around 4000 billion cubic meters. Asia-Pacific leading consumption globally followed by Europe was heavily reliant on LNG supplies from the United States and Australia. However, Qatar and Algeria also played important roles in Europe’s thirst for imported gas.

In the meantime, imported LNG led Europe to endure approximately four times the price it used to pay to import gas from Russia. Higher costs of gas imports were somewhat a blessing for the renewables and most notably electricity. While gas prices rose sharply in Europe, electricity costs even experienced reductions. 

Natural gas prices have, however, experienced volatility due to supply and demand imbalances and geopolitical tensions. European gas prices surged to more than € 300 for a million British thermal units in 2022 and mid-2023. The figures provided by the API refer to the average European prices but they vary from country to country. For instance, gas prices are lower in countries like the UK and Norway as compared to Germany or France.

Major Challenges

The natural gas industry faces several challenges, which can impact both its operational and market dynamics. I try to focus on some of those issues.

Pricing issues:

Natural gas prices can be subject to significant fluctuations due to factors such as changes in demand, geopolitical tensions, supply disruption, and seasonal variations. Price instability may make it difficult for governments and companies to plan investments. Gas contracts are always long-term and often very long-term extending over twenty years or more. Geopolitical conflicts may also impact supply routes and create uncertainty in global and regional gas markets. This is particularly true in areas with major gas reserves, such as the Middle East and Central Asia.

The natural gas industry requires extensive and expensive infrastructure including pipelines, terminals, and LNG facilities. In the meantime, companies and suppliers have to meet challenges related to environmental regulations. Under current international regulations, sometimes buyers refuse to buy gas and LNG that is produced without observing the environmental regulations. As the global energy transition accelerates, the international gas market faces growing pressure to observe procedures that make production and supply costlier.

Regulatory Frameworks 

Natural gas, despite being a cleaner fuel of choice as compared to coal and oil, still contributes to GHG emissions, particularly methane leaks during extraction and transportation. As such increasing environmental regulations create pressures on the industry to adopt sustainable practices. Gas-producing countries have mostly adopted proper policies towards the production and transportation of gas and are doing fine with the environmental conditions but all those additional procedures lead to higher costs that must be borne by the producers.

According to a GECF report of April 2023, environmental regulations related to GHG emissions have led to an incremental cost of production of LNG by 16 percent during 2020-2022. This implies that producers have to charge more for their supply of LNG and additional pressures on the final consumers of gas. This pattern of additional regulatory costs has been particularly exacerbated following the Ukraine war since there has been a significant shift from pipeline gas to LNG.

According to the International Energy Agency (IEA), global natural gas demand is expected to grow by approximately 1.5 percent annually through 2030, mostly driven by emerging markets. However, it is noteworthy that the outlook for investment remains relatively good as compared to investment in oil.

Energy Transition 

The transition from oil, gas, and coal to electricity and renewable sources of energy is going to ride energy policies through the rest of the century. Natural gas will play a crucial role as a long-term backup for intermittent renewable sources like wind and solar.

However, the global gas market is at a crossroads influenced by geopolitical events, technological advancements, and environmental constraints and challenges. As countries navigate their energy policies, the role of natural gas will remain of critical importance. As such it is getting increasingly important for both producers from around the world, including those currently outside GECF, and the consumers to strategize their energy policies for a safe and secure energy future.

Global Gas Market

The Gas Exporting Countries Forum was born in Iran in 2001 as a platform for gas-exporting

countries to collaborate and promote the interests of gas producers and gas consumers in the global energy market. The Forum aims to facilitate cooperation among member countries to ensure the sustainable development of gas reserves-rich countries to supply their gas to the market and achieve their proportionate share in the world energy mix.

The GECF was, therefore, officially established during a meeting in Tehran, with founding members including Qatar, Algeria, Libya, Nigeria Egypt, Bolivia, Russia, Trinidad and Tobago, and the Islamic Republic of Iran. It is noteworthy that bringing together such an important group of countries, all from the South back in 2001 was an assiduous undertaking for which lots of efforts were required. Something in the magnitude of the formation of OPEC in 1960.

Objectives: The initial objective of the Forum was to provide a platform for cooperation and exchange of views among members to promote the role of natural gas in sustainable development and energy security, and to enhance cooperation in various areas including transfer of technology, investment, data gathering, and market analysis.

Global Gas Landscape 

Some of the major undertakings of the GECF include: Supply Coordination, the Forum plays a crucial role in coordinating supply strategies among member countries which collectively hold a significant share of the global natural gas reserves and production. This is somewhat similar to what OPEC does but given the nature of gas trade and supply systems, the dynamics are less visible and impactful.

Responding to geopolitical tensions:

The Forum reacts collectively towards tensions that might endanger or disrupt the supply and security of energy in producing and consuming countries as experienced in recent years in Ukraine conflict. The Forum also emphasizes the importance of timely and sustainable investment in the gas industry both at upstream and downstream levels. This is particularly true about LNG. The disruption in the pipelines transferring Russian gas to Europe led to increased LNG production and trade.

Technology Sharing

The GECF is devoted to fostering collaboration among member countries in the field of joint projects and advancements of technologies in different areas of gas production, transportation, and supply to different destinations. The GECF Secretariat holds regular meetings and consultations at expert and decision-making levels to promote cooperation among its members.

In this context, issues related to gas flaring and environmental aspects of gas production and consumption are prioritized. The role of gas in energy transition towards renewable sources of energy is a top policy priority for the GECF. As the world is shifting towards renewable energy sources, the GECF is positioned to advocate for the role of natural gas as a transitional fuel. Member countries emphasize natural gas’s role in providing energy security while supporting the integration of renewable sources into national energy systems.

Global Influence

Strengthening Global Influence is of growing importance for all the member states. The GECF may and should enhance its influence by promoting policies that benefit member states to ensure that their interests are represented in international energy discussions and debates including the United Nations Framework Convention on Climate Change (UNFCCC). United Nations Conference of Parties (COP) is an important gathering where the GECF has to do a lot and even more than what has so far been done. Fortunately, COP 28 which was held in late November and early December 2023 in the United Arab Emirates was presented by the GECF Secretariat and defended gas and gas producer’s interests. However, a lot is there to be done. 

COP29 will soon be held in November this year in Baku, Republic of Azerbaijan, still another oil and gas producing country. COP30 is due to be held in Brazil, an oil and gas producer. These are relatively new phenomena. Paris Accord for Climate Change did not even recognize that gas producers have a lot of stake in the global warming debate. The CEGF serves as a vital platform and instrument that has to play a vital role wherever the interest of the member states warrants. The climate change debate is one of those vital areas where GECF has to play a much more active role.

One of the issues that GECF has to contemplate and find ways to address is investment in gas production and countries that harm and disrupt the flow of investment into the gas industry of some of the member states. Some countries have politicized the flow of funds to gas producers. This has greatly contributed to the future energy security of nations all around the world.

According to a Wood Mackenzie global energy report, gas will continue to dominate the global energy consumption mix by 15 percent through 2050. Share of natural gas will continue to be 10 percent of all primary energy production. This share currently stands at 27 percent. Gradual decline in the share of natural gas, is due to deficits in production and supply. This declining rate is not due to deficits in gas reserves but insufficient investment in capacity built. Additional capacity requires significant investment. Under current United States international sanctions regimes, some fifty percent of the world’s total reserves is under US sanctions and cannot access adequate capital and technology to develop gas reserves for future generations.

Deficient in financing and capital flows into the gas industry has led to substantial vulnerabilities in prices and supply of gas as the fuel of choice. United States of America has imposed sanctions on Iran’s massive gas reserves and as such the second largest gas reserves holder in the world cannot invest and transfer technologies to boost production. These practices are extremely harmful to the security of energy and smooth transition to renewable sources of energy.

In that context, one of the areas that can be addressed by the GECF is forming a common front against unjust practices.

Investment Fund

In the meantime, member countries can establish an investment fund in order to support investments in countries with high gas reserves and in dire need for upgrading and capacity utilization. This will certainly require the support of gas consumption nations. Gas is not a rival for renewable energies. Gas is a complementary fuel that supports energy transition and complements all other sources of energy. In 2024, some 80 percent of total energy consumption came from fossil fuels; oil, gas and coal. This is exactly what it was in 1997, the year that the first Climate Change Summit was held. According to the IEA report, oil demand will peak by 2030. It is estimated to remain more and less flat for about a decade, after which it will decline. This trend is expected to start by 2040 and beyond. The rate of decline will further be much lower than oil. As such gas will be a dominant player in the energy market for the next several decades.

Now that the next GECF will hold a ministerial meeting in Tehran where it was born back in 2001, it is expected to register a historic outcome for the forum’s members and the rest of the world.

1-Norway Approves Baltic Sea GoliatVIND EIA

The Norwegian Ministry of Energy approved GoliatVIND's proposal on Nov. 11 for an environmental impact assessment (EIA) program for a floating offshore wind project in the Baltic Sea.

GoliatVIND now plans to submit a license application, which if sanctioned, would lead to the world's first offshore demonstration plant with turbines and floaters rated at more than 15 MW.

The company’s co-venturers are Odfjell Oceanwind, Source Galileo, Kansai Electric Power, and ENEOS Renewable Energy.

2- Nigeria Field Set for Renewed Drilling

Africa Oil Corp. has issued an update on its development and exploration activities offshore Nigeria and southern Africa.

At the deepwater Agbami field offshore Nigeria, a 4D seismic acquisition program completed in the third quarter is undergoing fast-track processing ahead of preparations for a drilling campaign, scheduled for the second quarter of 2026.

The analysis also continues with a 4D survey over the Egina field, with seismic inversion and well-planning validation planned for the current quarter.

At Akpo, a new infill production well has come onstream, with three new producers and two new injectors now completed in 2024. These have had an upward impact on production rates.

3- Finance for Australia Offshore Supply Base

Crestlink (ex-Kimberley Technology Solutions) has secured investment from Cerberus Capital Management for its planned marine supply and aviation base in northwest Australia.

Construction of the Cockatoo Island Supply and Support Base, reportedly a $300 million project, is due to start next year. It will include a deepwater port and aerodrome to support local offshore development, construction and operations, and monitoring of Australia’s borders.

The proximity of the location to offshore infrastructure should help energy companies reduce their marine gas oil consumption and Scope 3 greenhouse-gas emissions, Crestlink claimed.

4- Petrobras Deepwater Fields Tough Gas Processing

Petrobras says operations have started with the first module of the Natural Gas Processing Unit (NGPU) at the Boaventura Energy Complex in Itaboraí, Rio de Janeiro state.

The module is designed to process 10.5 MMcm/d, with capacity set to double around year-end once the second module becomes operational.

Boaventura’s NGPU will help increase gas supplies to Brazil’s domestic market, reducing the country’s dependence on imports. Production includes supplies through the Rota 3 gas pipeline, part of the Santos Basin’s Integrated Gas Flow System, delivered from deepwater fields including Tupi, Búzios, and Sapinhoá.

5-North Sea Munin Utility Module Completed in Thailand

The utility module for Aker BP’s Munin field platform in the Norwegian North Sea will sail in the next few weeks from Aibel’s Laem Chabang yard in Thailand for Haugesund, Norway.

The first steel for the 2,900-metric-ton module was cut last November. The completed Munin topside, weighing about 8,000 mt, will measure 62 m x 42 m, with a height of 35 m.

Munin’s remotely controlled unmanned production platform will form part of the multi-field Yggdrasil development.

GECF Clout Through Regional Alliance

The Gas Exporting Countries Forum (GECF), an influential body in the global energy market, plays a key role in formulating policies and strategies associated with natural gas production and export. GECF member states include top gas producers holding a significant share of global gas trading. They hold nearly 70% of natural gas reserves in the world, and make up nearly 45% of international gas trading, thereby becoming influential in pricing and market conditions. In light of the growing demand for energy and the significance of gas as a cleaner fuel than other fossil fuels, the GECF may serve as a platform for cooperation between gas producers.

Hassan Montazer-Torbati, a former CEO of the National Iranian Gas Company (NIGC), tells “Iran Petroleum” that establishing a regional alliance between GECF member states would bolster their standing in the global market. He also believes that such an alliance would facilitate the exchange of technology, experience, and strategy.

The following is the full text of the interview he gave to “Iran Petroleum”:

What do you think of the global gas market and its horizons?

The transition from fossil fuels has become a hot topic in recent years. Proponents of this theory in the energy market mainly focus on using renewable fuels. However, it seems that most agreements reached between proponents of energy transition pertain to using less oil and coal. The gas market is growing because of the clean nature of gas as fuel. Statistics show that gas consumption has grown 1.5-1.7% year-on-year, forecast to reach 4 tcm /y by 2030. Therefore, gas consumption is rising 50 bcm/y across the globe. That is a good figure for gas producers and exporters. In light of the significance of using clean fuels, the future of the global gas market would be affected by key factors like the transition to renewables, new technologies like gas extraction and transport technology that would increase gas accessibility and competitiveness in the global market, replacement of gas with coal, geopolitical conditions like oil price fluctuations, sanctions, changes in energy policies of producers, global demand particularly in Asia, climate conditions and adoption of relevant rules and regulations. Therefore, the future of the global gas market is expected to face numerous challenges and opportunities, requiring adaptation and innovation in the energy industry.

Under the present circumstances, gas is taking added significance as a clean fuel. GECF members hold more than 70% of global gas reserves. How do you think this Forum can influence the gas global market?

As you know, the GECF was an Iranian initiative. The preliminary measures for the establishment of such a Forum began in Iran. In those first years following the GECF establishment, the idea was for it to become an OPEC-style body to influence the gas global market. However, the issue is that OPEC and the GECF have different mechanisms. The oil market is different from the gas market and they cannot be reviewed and handled in the same way. Oil is a fluid and floating commodity with its supply and demand largely affecting prices, but gas is different. The gas market is regional. Apart from supply and demand, geographical position and gas transmission methods affect prices and market control. However, I believe that the GECF can fulfill its role in the global gas market because its member states currently account for more than 45% of gas production and trading. Their proven gas reserves make up 70% of global reserves. Therefore, the member states can affect the global gas market. To that end, such parameters as price regulation, development of international cooperation, adopting an export strategy, identifying new markets, influencing energy market policies through sharing information with member states, and consumer confidence in gas as a clean fuel can largely help reduce GHG emissions, which would turn the GECF into a dynamic and influential Forum in the global gas market.

How can Iran benefit from the GECF’s potential?

As you know, Iran holds the second largest gas reserves in the world, behind Russia. It has also an extensive gas pipeline network, giving Iran a special standing as a key member of the Forum. I believe that the GECF’s three top members – Iran, Qatar, and Russia – can significantly influence the future of the gas market. The geographic proximity between these three nations and Iran’s widespread gas grid represents a good opportunity for gas-rich Iran. For instance, Russia cannot directly export gas to Europe due to the consequences of the Ukraine war. Meantime, Iran has an extended pipeline network in the north, enabling it to either swap Russian gas in the short term or pipe it in the long term. It can also build a new pipeline for gas transit.

India and China are expected to be the main consumers of gas in the future. Iran, Qatar, and Russia can be good suppliers to them. India has an untapped market. It can receive gas from Iran via a pipeline crossing Pakistan. Regarding China, such a connection is possible through Turkmenistan. Iran enjoys a good position in the region. It can export gas by pipeline while being able, owing to its geostrategic position, to swap gas from other countries. Iran can now export natural gas to Pakistan, Iraq, and Turkey in addition to swapping gas to Turkmenistan. We can also export gas to Europe via Turkey. Iran can even serve as a gate between GECF member states and European buyers. Therefore, I believe that should GECF member states establish regional alliances between them by defining common interests they would be able to play a significant role in the global gas market and influence this market because regional alliances between GECF members would help regulate prices, manage supply, and prevent market fluctuations. Under conditions where climate change and the necessity of GHG emissions mitigation are on the global agenda, the GECF can help realize sustainable development objectives by promoting natural gas as an option for transition. Therefore, cooperation between GECF member states can help increase productivity and reduce costs, which would finally be in the interest of all stakeholders in the global gas market.

LNG Development Globalizes Gas Market

Natural gas record is shorter than that of crude oil in the global energy mix. Initially, associated petroleum gas (APG) was seen as a disturbing factor for crude oil production, and APG was flared. That is why burning flares were the dominant global image of oil production in Iran and across the world. Despite efforts for no-flaring and flare gas capture, the same flares continue to symbolize the petroleum industry.

Gas gradually took added significance as a hydrocarbon fuel and found a toehold in the fuel mix. But the problem was that carrying crude oil, which was in liquid form, was easier than transporting gas. Therefore, gas consumption was limited to production zones.

How Economical?

Gas pipelines were the first solution that helped deliver gas to farther zones. International data show that gas transmission via pipelines would be economical up to 5,000 km, beyond which gas transfer would no longer be economical and would leave a destructive environmental impact.

On the other hand, prices for natural gas to be sold or exported via pipeline are often mutually agreed upon by exporters and importers. Therefore, unlike crude oil, the natural gas market is regional. Even in a single region, gas may be traded at different prices. Furthermore, since piped gas agreements are long-term, revising prices due to energy market fluctuations would not be possible, giving rise to drawn-out cases of arbitration.

Liquefaction; Threats and Opportunities

Due to the foregoing challenges, transmitting natural gas via options other than pipeline was considered. Natural gas liquefaction to produce liquefied natural gas (LNG) is a solution that has won a global welcome and is expected to replace pipelines. LNG may be carried as a single product on tankers to any spot in the world. Like crude oil, it would let natural gas be globalized, and therefore regional pricing would be put away.

Meantime, based on predictions, in light of the energy transition period, although demand for crude oil would keep falling until 2050, gas will continue to play a major role in the global energy supply. Emergent economies are also surfacing from across the globe and would need energy to realize their economic growth targets. Given that these economies are located far from the Middle East, Russia, or North America, LNG would be more attractive than pipelines to natural gas producers and consumers.

Pricing Challenge

Morteza Behrouzifar, an energy economics expert, told “Iran Petroleum” that there was not a single global gas market, but numerous markets, unlike the crude oil market.

“The only factor driving the gas market towards globalization would be a higher share of LNG trading than pipeline,” he said. “Although there is still a long way ahead for the globalization of the gas market, natural gas exports in LNG form are expected to exceed natural gas piping. That would make the gas market more complicated, and drive it out of regional control.”

Behrouzifar noted that this route would be shortened should the Gas Exporting Countries Forum (GECF) member states act with more coordination and become involved and instrumental in the market.

“Iran, which is one of the founders of the GECF, should try its best to reach the standing it deserves in gas export,” he said.

LNG, Future of Gas Market

Behrouzifar said Iran came second in terms of gas reserves in the world, just behind Russia, and was the third largest gas producer after the United States and Russia, “but it has failed to reach its real standing in gas trading”. The US produces 1 tcm/y of gas, far from Iran’s 250 bcm. 

“Therefore, simply owning resources cannot create any standing for countries in the gas market, because the US has become the largest producer of oil and gas and reached this objective with unconventional reserves. China is also one of the largest holders of unconventional gas reserves in the world although it lacks the required technology to tap these reserves and convert them into LNG,” said Behrouzifar. “On the other hand, global natural gas trading has a specific volume, and therefore although GECF brings together gas producers they rival each other in gas exports, and cooperation is borne out of their rivalry. So is the case for OPEC.”

Iran and LNG Market

Behrouzifar said LNG market development requires gas production hike and LNG facilities construction.

Iran has intended to construct LNG Facilities; however, due to imposition of sanctions, it has not managed to absorb investment and acquire the relevant technology. Therefore, as long as sanctions are in effect, the development of the gas industry particularly LNG, and exports has been hindered. At the time being, we are facing a gas imbalance, as we have failed to invest sufficiency in the upstream sector to strike an R/P ratio balance. Moreover, we have not stepped into energy efficiency,” said the energy expert.

Noting that Iran’s gas export via pipeline was limited to some neighboring countries, he said: “Iraq is one of them, but it is set to become a gas exporter in the world in coming years. Afghanistan and Pakistan are not reliable markets. Therefore, what can help Iran boost its gas trading is to develop the LNG industry.”

Emerging Economies

Behrouzifar said natural gas supplying nations have been used to building economical and accessible pipelines, adding: “From now on, gas markets would be developed in areas far from production centers and therefore, the bulk of exported gas should be in LNG form. For example, we cannot transfer natural gas to South Korea and Japan via pipelines, therefore we need to transfer gas in the form of LNG to enter these markets.”

“The US is one of the largest gas exporters in the world, however, it has no option but to enhance its LNG trading. Therefore, any gas export increase by the US would be only through LNG,” he added.

Behrouzifar said Iran had a limited market for gas around itself, adding that Europe’s market would be a big market for Iran, and it is not accessible due to some discriminatory policies.

“But China and India are densely populated countries with growing economies. In India where most people do not have access to modern energies, gas consumption development in this country may be a solution. These are countries to become big gas importers in the future and they would be receiving LNG.”

“All forecasts by energy institutes in the world are indicative of the higher share of LNG compared to piped gas in the future. In some markets, it would have a maximum share for 20 years,” said Behrouzifar.

GECF Can Boost Exporters' Bargaining Power

The global energy market has undergone fundamental changes when compared with previous decades. These developments have changed the share of various energy carriers in the world energy mix to the point that such fossil fuels as coal and crude oil are forecast to lose their standing in the energy mix and give their place to renewable energies. These developments pertain to mitigating carbon emissions and associated international obligations. Fingers are pointed at fossil fuels as the main source of carbon emissions and global warming. However, natural gas will continue to be largely welcomed, and demand for it is expected to keep rising on par with renewable energies up to 2050. That would allow gas-rich countries to appear more strongly in gas trading. International Gas Union (IGU) studies indicate that although demand for natural gas is forecast to grow in coming years, insufficient investment would keep it from growing as fast as demand, and therefore supply-demand imbalance is forecast to transpire in markets.

Asia Market

In the coming years, global demand for gas is set to keep growing, mainly in Asia. Demand for natural gas in the world is forecast to grow 2.1% by 2024. Therefore, by 2030, global markets are expected to experience a 22% gas imbalance. That means the supply-demand gap will keep widening up to 2030 unless more investment is made in between to increase gas production in the world. Gas production is not the only bottleneck for increased gas trading in the world, though. Most gas reserve owners have failed to win a share of gas trading to be consistent with these deposits. Therefore, paying attention to exports is as important as making efforts to attract investment to boost production capacity.

Natural gas is so important in today’s world that they came together to establish the Gas Exporting Countries Forum (GECF) to play their real role in the market.

The 26th GECF ministerial meeting due to be held in Tehran, just ahead of COP29 in the Republic of Azerbaijan, would be important as it can show the main route of gas industry development during the energy transition period.

Natural Gas Share

Nersi Qorban, a senior energy expert, told “Iran Petroleum” that despite holding the world’s second-largest gas reserves, Iran is required to revise the ratio of domestic consumption to exports. He added that Iran should try to boost its share of gas trading in the market.

Noting that natural gas producers and exporters could not remain indifferent to what was happening in the gas world, he said: “The GECF does not only look at exports; rather it also emphasizes increasing the natural gas share in global energy trading.”

“Therefore, GECF member states should, in addition to deciding on natural gas export increase, take into consideration the issue of access to state-of-the-art technologies and be beneficiary therein in a bid to be able to boost supply in parallel with increased gas demand in the market,” said Qorban.

Export Growth

Qorban said Iran was a founding member of the GECF, adding: “The Forum can undoubtedly help Iran and fellow GECF members increase their gas exports. But as far as Iran is concerned, there are some brakes on natural gas exports. The main challenge is sanctions, as sanctions against the Iranian petroleum industry have hindered gas exports and restricted access to technology.”

He said gas-rich Iran should bring its production to a level to supply domestic needs and also be able to export gas.

“In case Iran fails to increase natural gas production, the chance for a stronger presence in gas trading will be limited. Therefore, the issue of gas production should be taken into account,” he added.

Qorban said Iran owned gas 2.5 times as much as the US, adding: “However, Iran’s gas production is not consistent with its reserves and it has to expand its use of modern technologies.”

Wealth Generation

Qorbani said: “Like other fossil fuels, gas is likely to face falling demand in coming decades and head in a direction where within 50 years consumption and demand would fall, in which case renewable energies would replace it. Therefore, as long as we have time, we need to monetize these underground resources.”

He called for planning in Iran to export gas, adding: “We should turn gas reserves into wealth as much as possible in a bid to use these revenues for future generations.”

He said Iran’s membership of the GECF would be beneficial for the country, adding: “However, access to technology requires neutralization of sanctions. Having a glance at the free market, one may see that most technologies are owned by major international energy companies or smaller companies in Europe and the US. Sanctions have made access to technology more difficult.”

Constructive Cooperation

Qorban said that the most important objective of the GECF was to improve the trading of this fossil fuel.

“However, GECF member states are rivals in the gas market. But given collective interests in the gas market, they cooperate despite rivalry,” he said.

“Natural gas trading in the world is improving and the GECF may empower its members to exchange views,” he added.

“The presence of gas-producing and exporting countries in the GECF would help increase trade and bargaining power of member states in the gas market,” said Qorban.

He said the GECF had never intervened in this fossil fuel pricing “because the nature of the gas market and its pricing is not the same as that of crude oil, as natural gas pricing should be done regionally.”

“Regarding natural gas exports by pipeline the conditions differ because gas transmission by pipeline has political and neighborly aspects and prices are determined following political haggling,” he said.

Qorban stressed the need for a gradual increase in the LNG share compared with pipeline export in the natural gas market. “The LNG does not face such restriction and liquefied gas may be exported as a single product and be traded. But gas pipelines are not like that and there is always haggling underway between exporters and importers for pricing.”

He said that the biggest achievement expected from GECF ministers during their Tehran meeting would be enhanced cooperation and interaction. He added that Iran may benefit from this chance to prove itself as the center of gravity in the gas market.

A Review of GECF Member States

The Gas Exporting Countries Forum (GECF) was established on 23 December 2008 based on an idea proposed by Iran. Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, UAE, and Venezuela are the 12 main members of the GECF; while Angola, Azerbaijan, Iraq, Malaysia, Mauritania, Mozambique and Peru hold observer status. GECF members own 39% of the world’s gas production, 69% of the world's gas reserves, 40% of pipeline natural gas (PNG) transmission, and 51% of LNG trading.

The present report has been provided based on the GECF’s “Annual Statistical Bulletin” released in 2023.

Iran, 34 tcm of Proven Natural Gas Reserves

The Islamic Republic of Iran, with an area of 1,745,150 sq km is a country of particular geostrategic significance, owing to its location in the Middle East and central Eurasia.

Iran borders Armenia, the Republic of Azerbaijan, and Turkmenistan to the north. Kazakhstan and Russia are the direct neighbors to the north. Iran borders Afghanistan and Pakistan to the east, Iraq to the west, Turkey to the northwest, and the Persian Gulf and the Gulf of Oman to the south. Bahrain Kuwait, Oman, Qatar, and Saudi Arabia are maritime neighbors of Iran to the south.

Tehran, the capital of Iran, is home to 88,550,570 inhabitants. Apart from oil and natural gas, the country’s other natural resources include coal, chromium, copper, iron ore, lead, manganese, zinc, and sulfur.

Iran is a founding member of the GECF, IEF, and OPEC; and a member of ECO, IMF, NAM, OIC, and the UN.

Iran, with a labor force of 28,819,421 inhabitants, has a GDP of $388.54 billion and exports $76.92 billion of goods and services.

Iran’s proven natural gas reserves amount to 34 tcm. It produced 262.02 bcm/y of natural gas on average, 18.04 bcm of which is exported via pipeline and 244.89 bcm consumed domestically.

Iran’s gas production currently stands at nearly 1 bcm/d, more than 700 mcm/d of which comes from the giant South Pars gas field shared with neighboring Qatar. South Pars supplies 75% of Iran’s gas consumption.

Bolivia, South America Gas-Rich State

The Plurinational State of Bolivia is the world’s 28th largest country located between the Andes and the Amazon, in which various ethnic groups coexist.

With a population of 12,006,031 inhabitants and an area of 1,098,581 sq km, it is bordered by Brazil to the north and east, Paraguay and Argentina to the south, and Chile and Peru to the west.

Bolivia has the second-largest natural gas reserves in South America after Venezuela, providing an important potential source of energy to its Southern Cone neighbors and Brazil. Petroleum plays a significant part in the Bolivian economy 75% of which is drilled in some of the major oil fields of Santa Cruz, such as La Peña, Monteagudo, and Caranda.

The hydrocarbon sector is controlled by the state-owned Yacimientos Petroliferos Fiscales Bolivianos (YPFB) company.

Other economic activities in the country include agriculture, forestry, fishing, mining, and manufacturing goods such as textiles, clothing, refined metals, and refined petroleum. Bolivia is very rich in natural minerals, especially in tin.

Bolivia, with a labor force of 6,177,427 inhabitants, has a GDP equaling $44.31 billion. It exports $14.45 billion of goods and services.

With proven natural gas reserves of 0.3 tcm, Bolivia is producing 15.09 bcm/y of gas, of which 10.31 bcm is exported by pipeline. Domestic gas consumption in Bolivia amounts to 4.15 bcm/y.

Qatar, World's Top LNG Supplier

The State of Qatar, with 11,610 sq km and a population of 2,695,122 inhabitants, is located on the eastern coast of the Arabian Peninsula, bordering Saudi Arabia to the west.

Qatar is an emirate, which has a 35-seat Advisory Council that acts as a legislature.

The State holds the world’s third-largest natural gas reserves, after Russia and Iran, and is the largest supplier of LNG in the world. The majority of Qatar’s natural gas is located in the massive offshore North Field, which spans on an area roughly equivalent to Qatar itself.

The GECF headquarters is located in Doha, Qatar.

Qatar, with a labor force of 2,003,258 inhabitants, has a GDP equaling $237.29 billion.

With proven natural gas reserves of 23.8 tcm, Qatar is producing 210.49 bcm /y of gas, of which 24.4 bcm is exported by pipeline and 108.37 bcm in LNG form. Domestic gas consumption in Qatar amounts to 42 bcm /y.

Nigeria, Africa Gas Giant

The Federal Republic of Nigeria, with an area of 923,770 sq km and a population of 221,062,320 inhabitants, is located in Western Africa, shares a border with Benin, Niger, Chad, and Cameroon, and has a coastline of at least 853 km.

Being situated on the Gulf of Guinea, it is the most populous country in Africa and the 12th largest producer of petroleum in the world, possessing the largest natural gas reserves in the African continent. The capital-intensive oil sector provides 20% of the GDP, 95% of the foreign exchange earnings, and about 65% of the budgetary revenues.

Currently, a lot of effort is being placed towards making use of the abundant reserves of associated gas and reduced flaring, as many Nigerian oil fields are saturated, and have primary gas caps.

Apart from petroleum and gas, Nigeria also has a wide array of natural resources, which include coal, bauxite, gold, tin, iron ore, limestone, niobium, lead, and zinc. The Nigerian economy has well-developed financial, legal, communications, and transport sectors, with the substantial Nigerian Stock Exchange, which is the second-largest in Africa.

Nigeria, with a labor force of 73,272,344 inhabitants, has a GDP equaling $477.39 billion.

With proven natural gas reserves of 5.9 tcm, Nigeria is producing 42.10 bcm /y of gas, of which 0.79 bcm is exported by pipeline and 24.8 bcm in LNG form. Domestic gas consumption in Nigeria amounts to 12.97 bcm /y.

Venezuela, 5 tcm of Proven Gas

The Bolivarian Republic of Venezuela, with an area of 912,050 sq km and a population of 28,301,696, is a tropical country on the northern coast of South America.

It borders Colombia to the west, Guyana to the east, and Brazil to the south. Its northern coastline includes numerous islands in the Caribbean Sea, and borders the northern Atlantic Ocean Caribbean islands such as Trinidad and Tobago, Grenada, Curaçao, and Aruba in the northeast, while the Leeward Antilles also lie near the Venezuelan coast.

Venezuela’s natural resources boast a vast economic potential for the country. The petroleum sector dominates central government revenue, accounting for 50% of the share and over 90% of exports. It has the world's largest conventional oil reserves outside the Middle East and also one of the largest natural gas reserves in the world.

Major industries of Venezuela are oil, gas, telecommunications, consumer goods, mining, and agriculture. Venezuela exports $17.7 billion of goods and services.

With proven natural gas reserves of 5.5 tcm, Venezuela is producing 22.31 bcm /y of gas. Domestic gas consumption in Venezuela amounts to 13.86 bcm /y.

Russia, the World’s Largest Gas Owner

The Russian Federation, with an area of17,098,250 sq km and a population of 146,447,424 inhabitants, covers more than one-eighth of the Earth's total land area, stretching from the Baltic and Black Seas in the west to the Pacific Ocean in the east.

Russia possesses the world’s largest natural gas reserves, the 8th largest oil reserves, and the 2nd largest coal reserves. It is one of the world’s leading natural gas producers and exporters, while also being the 2nd largest oil producer and exporter.

The country’s industries include a complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine manufacturing from rolling mills to high-performance aircraft and space vehicles; defense industries, advanced electronic components, shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery such as tractors, and construction equipment; electric power generation and transmitting equipment; medical and scientific instruments; consumer durables; textiles; foodstuffs; and handicrafts.

Russia, with a labor force of 74,933,330 inhabitants, has a GDP equaling $2,240.42 billion. It exports $631.55 billion of goods and services.

With proven natural gas reserves of 47.7 tcm, Russia is producing 647.33 bcm /y of gas, of which 128.94 bcm is exported by pipeline and 40.97 bcm in LNG form. Domestic gas consumption in Russia amounts to 486.60 bcm /y.

Egypt, Advanced Energy Industry

The Arab Republic of Egypt, with an area of 1,001,450 sq km and a population of 110,990,103 inhabitants, is a transcontinental country in North Africa, with the Sinai Peninsula forming a land bridge to Southwest Asia.

Egypt borders the Mediterranean Sea to the north, the Gaza Strip and Israel to the northeast, the Red Sea to the east, Sudan to the south, and Libya to the west. Due to its geographical location, the country commands a role of major power in Africa, the Mediterranean region, the Middle East, and the Islamic world.

Egypt is one of the most developed and diversified countries in the Middle East, with sectors such as tourism, agriculture, industry, and service at almost equal production levels.

Egypt has an advanced energy industry based on oil, natural gas, and hydropower. Oil and gas are produced in the western desert regions, the Gulf of Suez, the Nile Delta, and the Mediterranean.

In addition to its role as an oil and gas exporter, Egypt has strategic importance because of its operation of the Suez Canal and Sumed (Suez-Mediterranean) Pipeline. These two routes are notable for the export of oil from the Persian Gulf and the export of LNG from the Suez Canal.

Egypt, with a labor force of 31,166,284 inhabitants, has a GDP equaling $476.75 billion. It exports $71.93 billion of goods and services.

With proven natural gas reserves of 2.2 tcm, Egypt is producing 66.80 bcm a year of gas, of which 0.73 bcm is exported by pipeline and 11.31 bcm in LNG form. Domestic gas consumption in Egypt amounts to 61 bcm/y.

Angola, 3rd Economy in Southern Africa

Angola, with an area of 1,246,700 sq km and a population of 35,588,987 inhabitants, is one of the largest countries in Africa and one of the region’s richest states in terms of natural resources.

The majority of the territory of sub-Saharan Africa’s 3rd largest economy is desert or savannah with hardwood forests in the northeast of the country.

The country has become the 2nd largest crude oil producer in Africa since 2016.

Increasing access to electric power is a high priority for the government of Angola, which has set targets of 10 gigawatts of installed generation capacity and a 60% electrification rate by 2025.

Angola, with a labor force of 15,042,938 inhabitants, has a GDP equaling $106.71 billion. It exports $27.66 billion of goods and services.

With proven natural gas reserves of 0.12 tcm, Angola is producing 5.39 bcm /y of gas, of which 4.17 bcm is exported in LNG form. Domestic gas consumption in Angola amounts to 0.85 bcm /y.

UAE, Divers Economy

The United Arab Emirates (UAE), with an area of 83,600 sq km and a population of 9,441,129 inhabitants, boasts a strategic location along with the southern approaches to the Strait of Hormuz as it is situated on the north-eastern margin of the Arabian Peninsula.

It is bounded to the west and south by the border with Saudi Arabia, to the east by the Gulf of Oman, to the southeast by the border with the Sultanate of Oman, as well as sharing maritime boundaries with Qatar, Oman, and Iran.

The UAE is a constitutional federation of seven emirates with a single national president.

Although the UAE was heavily dependent on revenues from hydrocarbons in the initial years, it is relatively well insulated from periods of low oil prices due to successful economic diversification, large foreign exchange reserves, and overseas investments.

Besides the petroleum sector, construction, manufacturing, import-export, tourism, and financial service sectors are fairly well developed. In addition, the UAE has one of the best infrastructures in the world with superb multi-lane highways, state-of-the-art communications, and a well-connected network of world-class airports and ports.

The UAE, with a labor force of 6,579,221 inhabitants, has a GDP equaling $507.53 billion.

With proven natural gas reserves of 8.2 tcm, the UAE is producing 55.57 bcm /y of gas, of which 7.58 bcm is exported in LNG form. Domestic gas consumption in the UAE amounts to 69.49 bcm /y.

Peru, South America’s 3rd Largest State

The Republic of Peru, with an area of 1,285,220 sq km and a population of 34,049,588 inhabitants, is the 3rd largest country in South America, located in its central and western part, on the coast of the Pacific Ocean.

Peru borders Ecuador and Colombia to the north, Chile to the south with Brazil and Bolivia to the east, and the Pacific Ocean to the west. The area of the country includes Pacific islands and the Lake Titicaca’s Western Islands.

Peru has sovereign rights over a territory stretching 200 marine miles off its Pacific shores and is a Consulting Party to the Antarctic Treaty, a continent where it has installed Machu Picchu Scientific Base.

Peru, with a labor force of 18,156,333 inhabitants, has a GDP equaling $242.631 billion. It exports $71.13 billion of goods and services.

With proven natural gas reserves of 0.237 tcm, Peru is producing 13.66 bcm /y of gas, of which 4.25 bcm is exported in LNG form. Domestic gas consumption in Peru amounts to 9.41 bcm /y.

Mauritania, Looking for Gas Industry Development

Mauritania, with an area of 1,037,700 sq km and a population of 4,736,139 inhabitants, is located in northwest Africa and is the 11th-largest country in Africa. It is the 28th-largest in the world, and 90% of its territory is in the Sahara. The name Mauritania derives from the ancient Berber Mauri tribes and their kingdom, Mauretania.

The Atlantic Ocean borders the country to the west, Western Sahara to the north and northwest, Algeria to the northeast, Mali to the east and southeast, and Senegal to the southwest. Most of its population lives in the temperate south of the country, with roughly one-third concentrated in the capital and largest city, Nouakchott, located on the Atlantic coast.

Mauritania is a resource-rich country with significant reserves of minerals, hydrocarbons, and fisheries; the nation has a rich history dating back thousands of years and is home to several well-preserved historical sites, such as the city of Chinguetti, known for its ancient libraries and mosques; the ruins of the ancient town of Ouadane; and the prehistoric rock art sites of Adrar n'Achkouf.

Driven by recent discoveries in natural gas, the country aims to develop its gas industry and present itself as a driver of the economy in the region.

Malaysia, with a labor force of 1,129,487 inhabitants, has a GDP equaling $10.38 billion. It exports $4.82 billion of goods and services. Mauritania holds 0.05 tcm of proven natural gas reserves.

Equatorial Guinea, Upstream Sector Growth

The Republic of Equatorial Guinea, with 28,051.00 sq km and a population of 1.675 million inhabitants, comprises the Rio Muni coastal enclave, which consists of several islands on the Cameroon coast and a part of the African mainland between Gabon and Cameroon.

Being situated on the oil and gas-rich Gulf of Guinea, Equatorial Guinea is a fast-growing economy due to investments in its large reserves of oil and gas which are altering the economic and political status of the country. The rapidly growing upstream oil and gas industry is key to the national economy.

Equatorial Guinea has other resources, including its tropical climate, fertile soils, rich expanses of water, and deep-water ports. The Government is seeking to diversify the economy by encouraging agriculture and financial services. The once-significant economic mainstays of the colonial era – cocoa, coffee, and timber – are also receiving attention, though they remain minuscule in comparison to the energy sector.

Equatorial Guinea, with a labor force of 566,927 inhabitants, has a GDP equaling $11.81 billion. It exports $6.66 billion of goods and services.

With proven natural gas reserves of 0.039 tcm, Egypt is producing 8.10 bcm a year of gas, of which 5.74 bcm is exported in LNG form. Domestic gas consumption in Equatorial Guinea amounts to 2.31 bcm/y.

Senegal, Tapping Offshore Natural Gas Reservoirs

With a population of 17,316,449 inhabitants, the Republic of Senegal, located at the westernmost point of the continent and served by multiple air and maritime travel routes, Senegal is known as the 'Gateway to Africa'.

With an area of 196,722 km2, it is limited to the north by Mauritania, to the east by Mali, to the south by Guinea and Guinea Bissau, to the west by Gambia, and by the Atlantic Ocean on a front of 500 km. Dakar (550 km2), the capital, is a peninsula located in the far west.

The economy of Senegal is driven by mining, construction, tourism, fishing, and agriculture, which are the main sources of employment in rural areas, despite abundant natural resources in iron, zircon, gas, gold, phosphates, and numerous oil discoveries recently. Senegal's economy derives most of its foreign exchange from fish, phosphates, groundnuts, tourism, and services.

Among Senegal’s priorities for economic development are leveraging its mineral wealth, developing renewable energy sources, and expanding the exploitation of large, offshore natural gas reserves. Senegal’s imminent gas production places it in a unique position amid the global energy transition. It also has large reserves of phosphate and gold.

Senegal, with a labor force of 5,198,745 inhabitants, has a GDP equaling $27.68 billion. It exports $6991.22 billion of goods and services.

With proven natural gas reserves of 0.052 tcm, Senegal is producing 0.02 bcm /y of gas. Domestic gas consumption in Senegal amounts to 0.02 bcm /y.

Malaysia, Natural Resources-Dependent Economy                                                          

Malaysia, with an area of 330,803 sq km and a population of 33,938,221 inhabitants, is a country in Southeast Asia, consisting of 13 states and three federal territories, separated by the South China Sea into two similarly sized regions.

East Malaysia shares land and maritime borders with Brunei and Indonesia and maritime borders with the Philippines and Vietnam.

The Malaysian economy has traditionally been fueled by its natural resources but has also expanded in the sectors of science, tourism, commerce, and medical tourism. Malaysia has a newly industrialized market economy, ranked 3rd largest in Southeast Asia and 33rd largest in the world.

Malaysia is a founding member of the Association of Southeast Asian Nations (ASEAN), the East Asia Summit (EAS) and the Organization of Islamic Cooperation (OIC), and a member of Asia-Pacific Economic Cooperation (APEC), the Commonwealth of Nations, and the Non-Aligned Movement (NAM).

Malaysia, with a labor force of 17,309,921 inhabitants, has a GDP equaling $406.31 billion. It exports $300 billion of goods and services.

With proven natural gas reserves of 2.056 tcm, Malaysia is producing 71.77 bcm /y of gas, of which 2.9 bcm is exported by pipeline and 37.45 bcm in LNG form. Domestic gas consumption in Malaysia amounts to 36.12 bcm /y.

Libya, Natural Gas Output Hike

The State of Libya, with an area of 1,759,549 sq km and a population of 6,812,341 inhabitants, is located in North Africa and shares borders with Tunisia, Algeria, Niger, Chad, Sudan, Egypt, and the Mediterranean Sea. Being ranked the 4th largest country in Africa by area and the 17th largest in the world, Libya is a major oil producer with the oil sector contributing practically to all export earnings and over one-quarter of GDP.

It is also an exporter of natural gas: LNG and PNG. The Government plans to significantly enhance the country’s natural gas production, to expand the use of natural gas in the energy sector.

The non-oil manufacturing and construction sectors, which account for about 20% of the GDP, have expanded from processing mostly agricultural products to the production of petrochemicals, iron, steel, and aluminum.

Libya, with a labor force of 2,318,929 inhabitants, has a GDP equaling $45.75 billion.

With proven natural gas reserves of 1.505 tcm, Libya is producing 12.57 bcm/y of gas, of which 2.48 bcm is exported by pipeline. Domestic gas consumption in Libya amounts to 10.09 bcm/y.

Iraq, Significant Gas Reserves

The Republic of Iraq, with an area of 435,050 sq km and a population of 44,496,122 inhabitants, has arid desert land to the west of the Euphrates, a broad and fertile central valley between the Euphrates and the Tigris, and mountains in the northeast.

Iraq is bounded on the east by Iran, on the north by Turkey, on the west by Syria and Jordan, and on the south by Saudi Arabia and Kuwait.

Two-thirds of the Iraqi economy is powered by oil production. Existing oil fields are widely dispersed throughout fields in the south of the country, amounting to one of the largest reserves in the world.

Iraq has significant gas reserves, usually found in conjunction with oil (Associated Gas). A significant amount of these remains untapped but could be exported or used to provide a significant and sustainable energy source for electricity production with the view to drive the domestic manufacturing industry.

Apart from hydrocarbons, Iraq’s other natural resources include phosphates and sulfur. Agriculture has historically been of great economic importance for Iraq. Farm management, animal husbandry, and pasture improvement, with livestock including cattle, sheep, goats, and poultry, are important industries.

Iraq is a founding member of the UN, OPEC, and the Arab League.

Iraq, with a labor force of 11,183,808 inhabitants, has a GDP equaling $264.18 billion.

With proven natural gas reserves of 3.7 tcm, Iraq is producing 9.86 bcm /y of gas. Domestic gas consumption in Iraq amounts to 20.48 bcm /y.

Azerbaijan, Europe-Asia Bridge

The Republic of Azerbaijan, with an area of 86,600 sq km and a population of 10,175.016 inhabitants, is situated on the eastern side of Transcaucasia (or South Caucasus) on the shores of the Caspian Sea.

The largest country in the South Caucasus shares borders with Iran, Turkey, Russia, Georgia, and Armenia. The eastern shores of the country are greeted by the waters of the Caspian Sea. It is bordered by Armenia to the north and the east, Iran to the south and the west, and Turkey to the west.

Azerbaijan is crucial to the economy of the Caspian and Caucasian regions, particularly in the development of the transport infrastructure in the Caucasus and the implementation of energy projects. It was the region's first country to explore its huge energy potential, form a new economic model for regional development, and expand political and economic relations between Europe and Asia.

Through the decades, the local industry has also been successfully represented by the agricultural industry, which is famous for cotton-growing, viticulture, vegetable growing, and cattle breeding.

Azerbaijan is a member of the United Nations, the Organization of Security and Cooperation in Europe (OSCE), the Council of Europe (CE), the Commonwealth of Independent States (CIS), the Organization for Democracy and Economic Development (GUAM), and the Black Sea Economic Collaboration (BSEC).

Azerbaijan, with a labor force of 5,160,258 inhabitants, has a GDP equaling $78.72 billion. It exports $47.27 billion of goods and services.

With proven natural gas reserves of 1.9 tcm, Azerbaijan is producing 33.23 bcm /y of gas, of which 22.67 bcm is exported by pipeline. Domestic gas consumption in Azerbaijan amounts to 10.59 bcm /y.

Trinidad and Tobago, Investment in LNG

 The Republic of Trinidad and Tobago, with an area of 5,130 sq km and a population of 1,531,044 inhabitants, is an archipelagic state in the southern Caribbean, lying just off the coast of north-eastern Venezuela and south of Grenada in the Lesser Antilles.

Consisting of two main islands, Trinidad and Tobago, and numerous smaller landforms, the Republic shares maritime boundaries with Barbados to the northeast, Guyana to the southeast, and Venezuela to the south and the west.

Trinidad and Tobago is the leading producer of oil and gas in the Caribbean, and these resources play an important role in the national economy. Oil and gas account for approximately 40% of the GDP and 80% of exports. Recent growth has been fueled by investments in LNG, petrochemicals, and steel. The country is known globally for the development of its natural gas sector.

The country supplies manufactured goods, notably food products and beverages, as well as construction materials to the Caribbean region. Trinidad and Tobago is a regional financial center, the tourism industry also demonstrates steady growth.

Trinidad and Tobago, with a labor force of 678,100 inhabitants, has a GDP equaling $27.89 billion. It exports $65.53 billion of goods and services. In 2020, Trinidad & Tobago’s proven natural gas reserves stood at 290 bcm.

Trinidad and Tobago is producing 27.52 bcm /y of gas, of which 10.59 bcm is exported in LNG form. Domestic gas consumption in Trinidad and Tobago amounts to 14.12 bcm /y.

 Mozambique, Industrial Growth

The Republic of Mozambique, with an area of 786,380 sq km and a population of 32,969,518 inhabitants, is a country located in Southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini (Swaziland) and South Africa to the southwest.

Mozambique is endowed with rich natural resources.

The country's economy is mainly based on agriculture, but the industry is growing, particularly food and beverages, chemical manufacturing, and aluminum and petroleum production. The tourism sector is also expanding. South Africa is Mozambique's leading trading partner and source of foreign direct investment, while Belgium, Brazil, Portugal, and Spain are also among the country's most important economic partners.

Mozambique is a member of the United Nations, the African Union, the Commonwealth of Nations, the Organization of the Islamic Cooperation, the Community of Portuguese Language Countries, the Non-Aligned Movement, the Southern African Development Community, and is an observer at La Francophonie.

Mozambique, with a labor force of 14,614,366 inhabitants, has a GDP equaling $17.85 billion.

With proven natural gas reserves of 0.650 tcm, Mozambique is producing 5.35 bcm /y of gas, of which 4.20 bcm is exported by pipeline and 0.05 bcm in LNG form. Domestic gas consumption in Mozambique amounts to 1.15 bcm /y.

Algeria, Income-Generating Hydrocarbons

The People’s Democratic Republic of Algeria, with an area of 2,381,740 sq km and a population of 45,834,432 inhabitants, has a mixed geography with a large portion falling in the desert region and a long coastal line along the Mediterranean Sea in the north.

The largest African country is bordered in the east by Tunisia and Libya, in the west by Morocco, Western Sahara, and Mauritania, in the southwest by Mali, in the southeast by Niger, and in the north by the Mediterranean Sea with the main towns, fertile land, and beach resorts.

The Algerian Government is a multi-party republic and has a bicameral parliament, with the Council of Nations (Senate) and the National Assembly (Lower House).

Hydrocarbons are the primary revenue generator for Algeria. Energy exports are the backbone of the economy, accounting for roughly 60% of budget revenues and 34% of the gross domestic product.

The country’s other industries include light industries, mining, electrical, petrochemical, food processing, construction, pharmaceuticals, and agribusiness.

Algeria is a Founding Member of the GECF and a member of the United Nations, Arab League, African Union, OPEC, IEF, and OAPEC.

Algeria, with a labor force of 12,638,622 inhabitants, has a GDP equaling $194.990 billion. It exports $65.53 billion of goods and services.

With proven natural gas reserves of 4.5 tcm, Algeria is producing 101.44 bcm a year of gas, of which 35.49 bcm is exported by pipeline and 13.65 bcm in LNG form. Domestic gas consumption in Algeria amounts to 51.82 bcm a year.