Gas Exporting Countries Forum

The Gas Exporting Countries Forum (GECF) is an intergovernmental organization of 11 of the world's leading natural gas producers made up of Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago and Venezuela. GECF members together control over 70% of the world's natural gas reserves, 38% of the pipeline trade and 85% of the liquefied natural gas (LNG) production.[2] The three largest reserve-holders in the GECF  Russia, Iran and Qatar  together hold about 57% of global gas reserves.[2]

Gas Exporting Countries Forum (GECF)

Logo
Members (blue) and observers (orange) of the Gas-Exporting Countries Forum.
HeadquartersDoha, Qatar
Official languageEnglish
TypeTrade forum
Members[1]
Leaders
 Secretary General
Yury Sentyurin
EstablishmentTehran, Iran
 Forum
May 20, 2001
 Statute
December 23, 2008
Area
 Total
26,965,287.87 km2 (10,411,355.85 sq mi)
Population
 Estimate
599,861,442
 Density
22.2/km2 (57.5/sq mi)
Dmitry Medvedev and the participants in the seventh ministerial meeting of the Gas Exporting Countries' Forum (GECF), Moscow Kremlin, 2008.
Vladimir Putin and the participants in the meeting of the heads of state and government of the Gas Exporting Countries Forum (GECF), Moscow Kremlin, 2013.
Hassan Rouhani chairs the Third GECF summit, 22 May 2015

History

The GECF was established in Tehran, Iran, in 2001. Until the seventh ministerial meeting in Moscow, Russia, it operated without charter and fixed membership structure. The seventh ministerial meeting, held on 23 December 2008 in Moscow, adapted the organization's charter.[3] At the same time, it was decided to set up an Executive Office and a Secretariat in Doha, Qatar. On the eighth ministerial meeting in June 2009, energy minister of Qatar Abdullah bin Hamad Al Attiyah was elected as the chairman (president) of the GECF and Algerian energy minister Chakib Khelil was elected as vice-chairman.[4][5][6] On the ninth ministerial meeting in December 2009, the vice-president of Russian energy engineering and construction company Stroytransgaz Leonid Bokhanovsky was elected as Secretary-General.[7] He was re-elected at the thirteenth ministerial meeting in December 2011.[8] In 2013, GECF ministers elected Iran’s candidate Mohammad-Hossein Adeli, a former head of central bank and diplomat, as the new Secretary-General of the forum for the next two years.

Objectives

The objectives of the GECF are:

  • to foster the concept of mutuality of interests by favoring dialogue between producers, between producers and consumers and between governments and energy-related industries;
  • to provide a platform to promote study and exchange of views;
  • to promote a stable and transparent energy market.

Organisational structure

The highest body of the GECF is a ministerial meeting. In between of ministerial meetings, the work is organized through the Secretariat, headquartered in Doha, Qatar. The 2009 chairman of the GECF was Abdullah bin Hamad Al Attiyah and the vice chairman was Chakib Khelil.[4][5] The Secretary-General is Leonid Bokhanovsky.[7]

Secretaries-General

Name Country Service Period
Leonid Bokhanovsky  Russia 9 December 2009 – 1 January 2014 (2 Term)
Mohammad Hossein Adeli  Iran 1 January 2014 – 12 January 2018 (2 Term)
Yury Sentyurin  Russia 12 January 2018 – present

Ministerial meetings

The GECF has had ministerial meetings since 2001:[9]

LocationYear
Tehran, Iran2001
Algiers, Algeria2002
Doha, Qatar2003
Cairo, Egypt2004
Port of Spain, Trinidad and Tobago2005
Doha, Qatar2007
Moscow, Russia2008
Doha, Qatar2009 (June)
Doha, Qatar2009 (December)
Oran, Algeria2010 (April)
Doha, Qatar2010 (December)
Cairo, Egypt2011 (June)
Doha, Qatar2011 (November)
Malabo, Equatorial Guinea2012
Tehran, Iran[10]2013
Doha, Qatar2014
Tehran, Iran[11]2015

Summits

Meeting Country Year
I  Qatar, Doha 15 November 2011
II  Russia,[12] Moscow 1 July 2013[13]
III  Iran, Tehran 23 November 2015
IV  Bolivia, Santa Cruz de la Sierra 24 November 2017[14]

Holding the GECF's summit was decided at the 10th ministerial meeting in Oran in 2010. The first GECF's summit was held in Doha on 15 November 2011, under patronage of Emir Sheikh Hamad bin Khalifa al-Thani, following the thirteenth ministerial meeting held at the same place on 13 November 2011.[15] Two main issues which were discussed at the summit, were natural gas prices and a common approach to the natural gas market.[16] It was agreed on the summit that the price of gas used to generate electricity is too low and the gap between prices for gas and crude oil need to be narrowed. The linking of gas prices to the oil price was considered. However, the GECF will not set output limits for its members.[17] The final communique issued was the Doha Declaration, which read that GECF members "recognized the importance of long-term gas contracts to achieve a balanced risk sharing mechanism between producers and consumers" and "acknowledge the need to reach a fair price for natural gas based on gas to oil/oil products prices indexation with the objective of an oil and gas price convergence ..."[18][19] Russian president Dmitry Medvedev made a statement calling the summit "an important event, which marked a new stage in the development of the global energy sector and the gas sector in particular."[20]

Membership

The members are Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago and Venezuela.[7][21] Kazakhstan,[22] Netherlands, Iraq, Oman, Peru, Azerbaijan and Norway are observers.[23] Other countries like Turkmenistan,[23] Brunei, Indonesia, Malaysia, the United Arab Emirates, and Yemen have participated at different meetings.[4][24][25][26] Yemen and Angola are interested to become members of the organisation.[27][28] The full membership will be granted by the approval of at least three quarters of all members.[24]

Country Region Signed GECF
statute
 Algeria MENA 2008
 Bolivia South America 2008
 Egypt MENA 2008
 Equatorial Guinea Sub-Saharan Africa 2008
 Iran MENA 2008
 Libya MENA 2008
 Nigeria Sub-Saharan Africa 2008
 Qatar MENA 2008
 Russia Eurasia 2008
 Trinidad and Tobago South America 2008
 UAE MENA 2012[29]
 Venezuela South America 2008

Gas OPEC

Since the establishment of the GECF in 2001 there has always been speculation that some of the world's largest producers of natural gas, in particular Russia and Iran, intend to create a gas cartel equivalent to OPEC which would set quotas and prices. The idea of a gas OPEC was first floated by Russian President Vladimir Putin and backed by Kazakh President Nursultan Nazarbaev in 2002. In May 2006 Gazprom deputy chairman Alexander Medvedev threatened that Russia would create "an alliance of gas suppliers that will be more influential than OPEC" if Russia did not get its way in energy negotiations with Europe.[30] Iranian officials have explicitly expressed strong support for a gas cartel and held official talks with Russia.[31] Cartel speculation was again raised when the ministers met on 9 April 2007.[32] The 6th Ministerial Meeting of the GECF established an expert group, chaired by Russia, to study how to strengthen the GECF. According to the Algerian Energy and Mines Minister Chakib Khelil, this mean that in the long term the GECF will move toward becoming a gas OPEC.[32] On 11 December 2009, Russia's Energy Minister Sergey Shmatko stated: "Today we can speak about gas OPEC as a fully fledged international organization. By a unanimous decision a Russian national was elected its secretary general. This is to show that member countries expect Russia to use its political weight to promote it."

Creation of the "Gas OPEC" was one of the topics of the first GECF's summit. However, some GECF's members are concerned over the gas exports to be politicized.[33] GECF generally refrains from coordinating production rates.[34][35]

See also

References

  1. GECF Members & Observers Archived 2015-11-08 at the Wayback Machine GECF
  2. Marcel Dietsch (2009-12-10). "The Next Global Energy Cartel". Forbes. Archived from the original on 2014-02-02. Retrieved 2010-04-23.
  3. Katya Golubkova, Amie Ferris-Rotman (2008-12-23). "Russia hosts new gas body, faces OPEC ire over oil". Reuters. Archived from the original on 2009-01-11. Retrieved 2008-12-23.
  4. Kevin Baxter (2009-07-02). "Qatar energy chief says UAE to join gas forum". ArabianOilandGas.com. ITP Business Publishing Ltd. Archived from the original on 2009-07-25. Retrieved 2009-07-02.
  5. Ayesha Daya, Robert Tuttle (2009-06-30). "Gas Producers Count on Oil-Linked Contracts in Qatar". Bloomberg. Archived from the original on 2012-04-08. Retrieved 2009-07-02.
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  15. "GECF gas summit focuses on stable supplies, markets". Gulf Times. 2011-11-15. Archived from the original on 2011-11-15. Retrieved 2011-11-15.
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  18. John, Pratap (2011-11-16). "Doha summit urges fair price for gas". Gulf Times. Archived from the original on 2011-11-16. Retrieved 2011-11-18.
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  22. "World gas producers approve charter for Doha-based forum". Xinhua. 2008-12-24. Archived from the original on 2009-01-10. Retrieved 2008-12-26.
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  24. "Russia Says Gas Forum Will Not Be OPEC-Like Cartel". RFE/RL. 2008-12-23. Archived from the original on 2009-01-14. Retrieved 2008-12-23.
  25. Ahmed Rouaba (2010-04-19). "Yemen in Talks to Join Gas Exporting Countries Forum". Bloomberg. Retrieved 2010-04-22.
  26. "Angola may join Gas Exporting Countries Forum". MacauHub. 2010-04-20. Retrieved 2010-04-22.
  27. "Archived copy". Archived from the original on 2017-11-16. Retrieved 2017-11-15.CS1 maint: archived copy as title (link)
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  31. Fedoruk, Vladimir (2011-11-14). "A gas OPEC to dominate GECF summit in Doha, Russia not present". Voice of Russia. Archived from the original on 2011-11-16. Retrieved 2011-11-18.
  32. "Feature: Unfettered global natural gas market a sign of the times | Hellenic Shipping News Worldwide". www.hellenicshippingnews.com. 6 April 2020. Archived from the original on 9 April 2020. There is no history of coordinated action on production and the closest thing to a “Gas OPEC” — the Gas Exporting Countries Forum (GECF) — has repeatedly ruled out joint intervention in the market
  33. "Feature: Unfettered global natural gas market a sign of the times | S&P Global Platts". www.spglobal.com. 2 April 2020. Archived from the original on 12 April 2020.

Bibliography

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