US entry to global gas market could threaten GECF

The entry of the US to the global gas market can be a threat to the Gas Exporting Countries Forum (GECF), said Nigerian Minister of Petroleum Resources Emmanuel Ibe Kachikwu. 

“Certainly, any rise in production will be a treat. We should wait and see how long can the US remain in the market,” Mehr news agency quoted the Nigerian minister as saying.

Kachikwu, who chaired the 17th Ordinary Ministerial Meeting of the GECF in Tehran, said that gas production costs are low in the US and huge investments have been made in this sector. “The US is considered as a good traditional market.”

Mohammad-Hossein Adeli, the secretary general of the GECF, addressed the meeting, saying that some European and Asian countries are the destinations for US gas. Some other countries, like Australia and east African countries will also join the gas exporters.

He went on to says that the forum has prepared a global model of gas outlook, which could be a platform for mid-term and long-term policymaking.

Speaking at a press conference after the 17th ordinary ministerial meeting of the GECF, which was held in Tehran on November 21, Adeli said that the outlook includes forecasts for price and demand, Shana news agency reported on November 22.

“Moreover, there are different pricing mechanisms in the international market, most of which are based on oil price. However, some others are based prices of gas and other carriers.”

Together, the GECF’s 12 member countries account for 67% of the world’s gas reserves, for 64% of global LNG exports and for 42% of cross-border pipeline trade.

Currently, the member countries of the forum are Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, United Arab Emirates and Venezuela. Iraq, Kazakhstan, the Netherlands, Norway, Oman, Azerbaijan, and Peru have the status of observer members.