(OAPEC) warns of a crisis threatening the global gas market with the approach of winter amid tight supplies
The General Secretariat of the Organization of Arab Petroleum Exporting Countries (OAPEC) warned today, 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.
And (OAPEC) explained in a press statement 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 rises in spot prices according to the main centers, such as the (TTF) index in Europe, which in mid-September exceeded the barrier of $21 per million British thermal units, compared to $7 per million British thermal units. British thermal early 2021.
She stated that it is the first time that the (TTF) index has reached this record level, surpassing the spot LNG 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 than any other region in the world.
She stressed the keenness of Arab countries exporting natural gas, especially liquefied natural gas, to provide gas supplies to their customers, as gas liquefaction stations in most Arab exporting countries are operating at almost full capacity to meet about 30% of global demand.
She stressed the importance of the pricing system based on linking oil prices (linkage with Brent crude) and on 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 importing markets, stressing the need to continue pumping investments into the natural gas sector to raise production levels to ensure a balance of supply and demand in the medium and long term, which is what Arab countries are working on despite challenges. Corona Virus (Covid-19) 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, and renewed her call to pay attention to this aspect and allocate the necessary investments in order to achieve a sustainable energy future.