Gas: Algeria Prepares to Host the GECF Summit, Shaping the Future of the Global Gas Market
BY: Hana Saada
Algiers, August 8, 2023 – The global energy stage is set for a pivotal moment as Algeria, a cornerstone member of the Gas Exporting Countries Forum (GECF), gears up to host the 7th GECF Summit in March 2024. The summit is expected to draw the Heads of State and Government from 19 gas exporting nations, including 12 GECF member countries and 7 observer members, who will convene in Algiers to deliberate on the future of the gas market and mechanisms to enhance stability and collaboration between producers and consumers.
In the Midst of Transformation
The world gas market has undergone significant transformations in recent years, from shifts in market dynamics to investment trends in the gas industry. This landmark event is taking place at a time when global energy policies are being redefined to align with evolving market realities, making the Algiers summit a momentous occasion for shaping the future of energy trade.
The preparatory work for the summit has already commenced, underscored by the recent meeting between Mohamed Hamel, the Secretary General of the GECF, and Algerian officials including Minister of Energy and Mines Mohamed Arkab and Minister of Foreign Affairs Ahmed Attaf. The summit gains particular significance as it brings together the foremost gas-producing nations, collectively controlling a staggering 73% of the world’s gas reserves and 42% of production.
Charting the Future of Gas Markets
The agenda of the Algiers summit is poised to cover a wide range of critical discussions, prominently including the trajectory of the global gas market and strategies to ensure consistent, reliable supplies while fostering deeper engagement between gas-producing countries and consumers. Against the backdrop of geopolitical tensions and economic sanctions, the energy landscape has been marked by a race for diversification and attempts to influence gas prices.
A recent report by the GECF highlights a projected 5% increase in global demand for natural gas and 4.5% for LPG in 2024. This growth is particularly driven by the activation of several regasification units in Europe, notably in Germany, Italy, and Spain. Thus, the challenges before gas-producing nations are twofold: meeting the needs of existing customers and exploring avenues to engage new markets.
Algeria’s Leadership in the Gas Sector
Algeria, a major stakeholder in the global gas arena, has set its sights on ambitious goals. The nation aims to not only increase gas production to cater to a growing market but also significantly expand its exports, targeting a milestone of 100 billion cubic meters in the years to come. This reflects Algeria’s commitment to contributing to market stability and meeting the demands of consumers around the world.
Dialogue and cooperation between gas producers and consumers are crucial to achieve this stability. While Europe’s energy policies offer new opportunities, the practice of capping gas prices remains a substantial hindrance to investment. Algerian officials and other member countries have consistently emphasized the necessity for market stability, highlighting the interdependence of producers and consumers in shaping the trajectory of the gas sector.
Forging a Path of Collaboration
In essence, the Algiers summit presents a unique opportunity to foster collaboration between gas-producing and consuming nations, ensuring that market stability is a collective endeavor. The Algerian-Italian energy cooperation model stands as a testament to successful partnership between producers and consumers, setting an example for other nations to follow suit.
As the global energy landscape continues to evolve, the Algiers summit assumes paramount importance in determining the course of the gas market. Amidst challenges and opportunities, it is through shared commitment, dialogues, and cooperative efforts that the stability and growth of the gas industry will be secured for the benefit of nations and economies worldwide.
