The General Secretariat of the Organization of Arab Petroleum Exporting Countries (OAPEC) warned Thursday of a crisis that could threaten the stability of the global gas market, especially with the approaching winter season, which witnesses a peak in demand.
In a press statement, OAPEC explained that this comes in light of the continued scarcity of supplies from some exporting countries, and the decline in gas stocks in the European market to their lowest level in this usual period of the year.
And it indicated that it is following with great interest the current developments in the global natural gas markets, which have witnessed unprecedented increases in spot prices according to major centers such as the "TTF" index in Europe, which, in mid-September, exceeded the barrier of $21 per million British thermal units, compared to at $7 per million British thermal units in early 2021.
"OAPEC" stated that it is the first time that the "TTF" index has reached this record level, surpassing the spot liquefied natural gas prices in the Asian market, in a precedent that is the first in the history of the industry, as gas prices in the Asian market are always higher compared to any other region in the world. the scientist.
She stressed the keenness of the Arab countries exporting natural gas, especially liquefied natural gas, to provide gas supplies to their customers, as gas liquefaction plants in most Arab exporting countries operate almost at their full capacities. To meet about 30% of global demand.
OAPEC stressed the importance of the pricing system based on linking oil prices (linkage with Brent crude), with long-term contracts, which Arab LNG exporting countries follow in most of their contracts.
She pointed out that this system ensures the stability of natural gas prices, reduces their fluctuations, and provides safe, reliable and sustainable supplies to imported markets, stressing the need to continue pumping investments in the natural gas sector; To raise production levels to ensure the balance of supply and demand in the medium and long term; This is what Arab countries are working on despite the challenges of the Corona pandemic.
OAPEC praised Qatar's move last February to take the final investment decision in the project to expand the production of liquefied natural gas from the eastern sector of the North Field to raise the production capacity of the State of Qatar from 77 million tons per year to 110 million tons per year by 2026.
She stressed the importance of stabilizing the global market for natural gas, which has become one of the main drivers of the global economy, and a key element in the process of energy transformation, renewing her call to pay attention to this aspect, and to allocate the necessary investments in order to achieve a sustainable energy future.
OAPEC is an organization of Arab oil-exporting countries, established in 1968, and includes in its membership the countries of Kuwait, Saudi Arabia, Libya, Qatar, Bahrain, the United Arab Emirates, Algeria, Iraq, Syria and Egypt.
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