Thursday, April 22, 2010

‘Gas OPEC’ holds glut talks

[ The National ]
by Tamsin Carlisle



Eleven of the world’s leading gas exporters have met in Algeria to discuss how to cope with a supply glut that could last for years.


The Gas Exporting Countries Forum (GECF), which has been dubbed the “gas OPEC”, appears to be growing more organised. But there was little evidence yesterday it would agree on a workable strategy for propping up sagging spot market prices for natural gas.


Algeria, which is hosting the meeting at its port of Oran, near the country’s biggest liquefied natural gas (LNG) export terminal, has for the first time called for supply cuts.


But other big exporters including Russia and Qatar seemed unconvinced this week that such a move would be effective, and wanted to discuss how to prevent the ready availability of spot supplies from undercutting long-term contracts. The UAE is not a member of the forum.


In the run-up to yesterday’s ministerial meeting, Chakib Khelil, the Algerian energy minister, had softened his stance and was no longer talking explicitly about cutting exports.


“A new model of co-operation is to be devised, beneficial to all,” Mr Khelil said before the meeting. “I think we should work towards a stable international gas trade through efficient use of world energy resources.


“The elements we should discuss today could constitute the basis for the definition of all possible options for implementation of all appropriate strategies for their achievement.”


Mr Khelil blamed the significant drop in spot market gas prices, which have fallen 28 per cent in the US since the start of this year to about $4 per million British thermal units, on the global economic crisis and new production technologies that have unlocked large volumes of unconventional “shale gas” in the US, ending the country’s reliance on imports.


A “fair” price for gas, he proposed, would be based on thermal equivalency with oil, giving a gas price of between US$13 and $14 per million British thermal units when crude is priced at $80 a barrel.


Abdullah al Attiya, the Qatari energy minister, said on Sunday he shared Mr Khelil’s position on “the question of fair gas prices”.


“The most important thing for us is to establish an appropriate price for gas indexed to the price of oil,” Mr al Attiya said.


Sergei Shmatko, the Russian energy minister, said gas producers should work together to limit the impact of spot sales on their long-term deals, as consumers sought to reduce what they purchased under long-term contracts, making up the difference with cheaper spot supplies.


“The spot market is also important, but it should not start to compete with long-term contracts in the form that is happening today,” Mr Shmatko said.


“We supply within the framework of long-term contracts, and we believe that other suppliers should or could express their approach to that and join with us.”


The GECF, made up of the holders of 70 per cent of the world’s gas reserves, has never before co-ordinated supply policy. Analysts said the group was now being forced to consider such action because the unexpectedly low prices were squeezing their export revenues.


Russia holds the world’s largest gas reserves and is the leading gas exporter, while Qatar is the biggest LNG exporter. Algeria is also a major gas exporter by pipeline and tanker, and was among the first countries to export LNG.


The GECF was expected to issue a statement after the meeting.


tcarlisle@thenational.ae




The original version of this story stated that the UAE was a member of the Gas Exporting Countries Forum. In fact, it is not a member.

35 comments:

賢諭 said...

很耐斯的部落格,留言支持你繼續加油........................................

皓珊 said...

It's great!!..........................................

雲亨 said...

No garden without its weeds.......................................................

70713ang_eloknuth said...

生活盡可低,志氣當高潔................................................................

淑惠 said...

你所貫徹的形象,你喜愛它有多少百分比,你就幸福多少百分比 ..................................................

麗旺麗旺 said...

希望能常常看到你的更新 .........................................

柏懿綺辰 said...

你不能左右天氣,但你可以改變心情..................................................

宛美黃惠妹 said...

一個人最大的敵人常是自己。 ............................................................

瓊文TamMcfee0520 said...

we‘re so proud of you!............................................................

jtmi said...

National Seminar “Thermofluid” 2010 National Seminar “Thermofluid” 2010 organized by Department of Mechanical and Industrial Engineering, Faculty of Engineering – University of Gadjah Mada.

The purpose of this National SeminarAs a media for the exchange of information for scientists, academics, and engineers on the results of the latest research, operational experience, methods, problems, and solutions practical challenges of the future in the field of thermal and fluid Engineering.

KEYNOTE SPEAKERS :

Prof. Takamatsu Hiroshi (Kyushu University, Japan)
Expert of: Intracellular heat and mass transfer (heat & mass transfer in biological cell, freezing of biological cell)

Prof. Kouichi Miura (Kyoto University, Japan)
Expert of: Coal Engineering 3.

Ir. Budi Basuki (Director of PT Medco E & P Indonesia)
Expert of: Energy and Petroleum Industry Development, The Influence of Energy Industries through Environmental Change Day -

Date Thursday, 5 August 2010
Time 08.00 – 17.00 WIB
Place KPTU Building, 2nd Floor, Faculty of Engineering, Gadjah Mada UniversityJalan Grafika No. 2, Yogyakarta 55281

There’ll be Very large occasion to Present Your Paper in Call of Paper and Poster Session Or as a regular participant.
City tour (optional) will be held in Friday, 6 August 2010.

Destination : Jogjakarta Historical Buildings, Exotic Jogja Panorama, Exclusive Lunch

More information, see: thermofluid.ugm.ac.id

Contact : M. Wisda : 085643032956 Rhea : 085743604380
Akmal I. Majid : 08122789031

Pengiriman makalah full paper ditunggu s/d 28 Juni 2010

Vready said...

Scientific Indonesia at

http://www.scientificindonesia.co.cc

Scientific Regio:

http://scientificregio.wordpress.com/

kittycha said...

Make yourself necessary to someone...................................................................

志宏 said...

Pay somebody back in his own coin.....................................................................

許紀廷 said...

人不能像動物一樣活著,而應該追求知識和美德.................................................................                           

江婷 said...

喜歡你的部落格,留言請您繼續加油.................................................................                           

于庭 said...

成熟,就是有能力適應生活中的模糊。.................................................................

吳婷婷 said...

人生是故事的創造與遺忘。............................................................

JasonBirk佳琪 said...

Quietude is the crown of life.............................................................

俊成俊成 said...

期待你的下次更新喔^____^..................................................................

玉苓玉苓 said...

要用心經營哦~~祝福你~~
............................................................

楊儀卉 said...

困難的不在於新概念,而在於逃避舊有的概念。............................................................

楊偉馨楊偉馨 said...

教育的目的,不在應該思考什麼,而是教吾人怎樣思考............................................................

銘木 said...

新手上路哦~請大家多支持(・ˍ・*) ............................................................

楊儀卉 said...

GOOD IDEA~thanks............................................................

RicoLisi0802志竹 said...

出遊不拘名勝,有景就是好的..................................................................

謝文新v謝文新 said...

培養健全孩子最好的方法是父母先成為健全的人。............................................................

建葉葉輝 said...

河水永遠是相同的,可是每一剎那又都是新的。. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

家唐銘 said...

It is easier to get than to keep it.......................................................................

張鴻黃淑娟水 said...

Pen and ink is wits plough...................................................................

家唐銘 said...

良言一句三冬暖,惡語傷人六月寒。......................................................................

孫邦柔 said...

令人心動的好文章~~............................................................

翊翊翊翊張瑜翊翊翊 said...

知識可以傳授,智慧卻不行。每個人必須成為他自己。..................................................

至馬馬馬馬玄馬馬馬馬 said...

知識可以傳授,智慧卻不行。每個人必須成為他自己。..................................................

said...

天生我材必有用,千金散盡還復來。.. ...............................................................

wnjd said...

你文章很棒的~繼續分享給大家~~~~..................................................