(Doha) Gas-exporting countries have limited capacity to rapidly increase supply to Europe and have no visibility on prices, GEPF members warned on Tuesday after a summit in Doha, in a context of crisis between Russia and Ukraine.
Posted at 1:00 p.m.
The presidents, prime ministers or ministers of the eleven member countries of the Forum of Gas Exporting Countries (GEPF) met in Doha, while the crisis between Moscow and Western countries contributes to a surge in prices in this sector, where Russia poses a threat to supplies.
Russian Energy Minister Nikolai Shulguinov assured that “Russian companies (were) fully committed to existing contracts”. He made no comment on the situation in his country, whose relations with Western countries are going through the worst crisis since the end of the Cold War due to the situation around Ukraine.
Mr Shulginov was speaking hours before Ukrainian President Volodymyr Zelensky’s statements demanding the “immediate” shutdown of the Russian-German gas pipeline Nord Stream 2 after Moscow’s decision to recognize pro-Russian separatist “republics” in eastern Russia. ‘Ukraine.
“We appreciate the efforts of all (GEPF) members who have worked hard to ensure a credible and reliable supply of natural gas to the global market and to preserve the stability of these markets,” said the Emir of Qatar. Sheikh Tamim bin Hamad Al-Thani in front of the participants.
Qatari Minister of Energy Saad Cherida al-Kaabi for his part recalled that Qatar, one of the main gas exporting countries, had assured Europe of its “help” in the event of supply difficulties, specifying however that it would be limited to the volumes available, the producers being bound by “long-term contracts”.
“The volumes that can be redirected (to other customers) represent around 10 to 15%”, according to him. However, “Russia represents 30 to 40% of Europe’s supplies” and “quickly replacing this type of volume is almost impossible”, he continued.
“In the Hands of God”
For him, the surge in gas prices began long before the crisis. “Everything that is happening today on prices is fundamentally linked to the lack of investment” and closing this gap “will take time”, he estimated.
“Predicting what prices will be (tomorrow, editor’s note) if they will go up or down, that’s in the hands of God,” he told reporters.
Iranian President Ebrahim Raisi, who arrived Monday for a bilateral meeting with the Emirati leader, for his part insisted on the “significant gas production and export capacities” of his country.
“Despite the cruel and illegal US sanctions, Iran has been able to rely on its experts,” he added.
Negotiations resumed in November in Vienna on the Iranian nuclear issue and aim to save the 2015 agreement which had allowed the lifting of international economic sanctions against Iran in exchange for strict limits on its nuclear program supposed to prevent it from acquire the atomic bomb.
The United States left the agreement in 2018 under President Donald Trump, who considered it insufficient, and reinstated its sanctions, which target the energy sector among others. In response, Tehran has largely freed itself from restrictions on its nuclear activities.
According to the GEPF, its 11 members – Qatar, Russia, Iran, Algeria, Bolivia, Egypt, Equatorial Guinea, Libya, Nigeria, Trinidad and Tobago and Venezuela – and seven associated countries account for 70% of proven gas reserves and 51% world exports of liquefied natural gas.
Russia, Iran and Qatar are key members of the GEPF.
The United States and Australia, two other major exporters, are not part of the Forum.