PHOTO
By Sachin Kumar
Minister of Energy and Industry H E Dr Mohammed bin Saleh Al Sada said yesterday that the demand for natural gas is likely to grow next year although with lower pace compared to previous year.
The Minister was speaking at the 18th Ministerial Meeting of the Gas Exporting Countries Forum (GECF) held here at Four Seasons Hotel. Gas demand for 2014 was 0.8 percent and will be 1.6 percent in 2016.
“Today, we are meeting at the time of transitional changes in the energy market in general and in gas market in particular. The changes that are bringing both opportunities and challenges for all of us as gas exporting countries.
"The good news of course is the demand for natural gas grew in 2015 by 1.9 percent, more than double of that of 2014 and is expected to continue to grow during the next year albeit with lower pace,” said the Minister, who is also President of 18th Ministerial Meeting of GECF, addressing the Forum.
GECF is an international, governmental organisation which provides the framework for exchanging experience and information among member countries. It is a group of the world’s leading gas producers with a membership of 19 countries.
“The supply side developments, however, are shaping new dynamics and trends in the markets and, as a result, is set to create a new environment of competitiveness. It is indeed a time to encourage closer exchange of views and experiences among us in order to explore ways of possible cooperation and coordination as core value of the Forum’s strategy,” he added.
He added that global commitment to fight climate change presents growth opportunity for natural gas exporting countries. “COP22 is taking place in Marrakesh. The global commitment to fight climate change is gaining momentum even more and faster than expected. The COP21 targets became legally binding early this month,” he added. “However, more nations have yet to join and more efforts have to be made to reach the target of keeping the global warming within 2 degrees Celsius above pre-industrial levels and make every effort to limit average temperature increase to 1.5 degrees Celsius,” he added.
He said the gas exporting countries should take the opportunity to present the case of gas as the fuel of choice and as a source of energy that can contribute to the above cause, the most.
“We believe that gas with its clean premium is to play a major role if it is well appreciated and not discriminated by regulations and policies,” he said.
“I am of the opinion that gas will benefit from the global environmental movement and will help lower CO2 emissions and create cleaner air with much less pollution as it is the only practical and available bridge today to a low carbon future. We should take it seriously and plan for it,” he added.
He said the 18th Ministerial meeting, is a special one for two reasons: Firstly, because of the conditions of the market we are facing now and in the near future that require us to address it as appropriately and as early as we can and secondly because of two important documents that have been made ready for members attention, namely, the GECF Long Term strategy and the GECF Global Gas Outlook 2040.
© The Peninsula 2016
