Algeria expects LNG market to revive in 2013, Russia backs LNG-oil price peg

Algeria, April 19 (KUNA) — Algerian Minister of Energy and Mining Chakib Khalil predicted here on Monday that the world demand for gas would grew in 2013, while his Russian counterpart Sergey Ivanovich Shmatco said the gas exporting countries were unanimous in supporting the pegging of gas and oil prices.

• In his address to the opening session of the 10th Forum of Gas Exporting Countries (FGEC) in this northwestern Algerian city, Khalil, the current FGEC chairman, said the challenging conditions facing the world gas market would continue in the coming three years before the market starts to revive in 2013.
• The world demand for gas will restore the levels of 2007 after three year, he said noting that the market had seen remarkable boom in the period between 2005 and 2010.
• This is the second time for Algeria to play host to the FGEC after the 2002 forum, the minister pointed out.
• “The current FGEC provides a platform for the major gas producers to debate the major concerns over the world market. The debates will focus on a study conducted by Algeria on the outlook of gas supply and demand in the medium run, ” he revealed.
• All efforts focus on how to set a fair LNG price after the recent sharp decline mainly due to oversupply the tendency of the United States, the major consumer of gas, to tap into new technologies to achieve self-sufficiency in fossil fuels, he noted.
• Khalil had previously called for cutting down the gas output in order to reverse the downward trend of prices, linking the prospects of the market growth to the global economic growth.
• The LNG prices nosedived from USD 12 to USD four per mBtu (million British thermal units).
• Algeria called on the countries, represented at the forum to reach consensus on practical measures to set fair prices for both gas exporters and importers and develop a strategy for the global gas market.
• Meanwhile, Shmatco said all the FGEC member states were unanimous in backing the pegging of the LNG and oil prices.
• The ministers attending the forum agreed to pursue and double the efforts aiming to stabilize the LNG market, he told reporters in Algiers after taking part in the Oran gathering.
• They also agreed to keep the gas byproducts away from competition and solve the commercial disputes relating to LNG long-, and medium-, term contracts, he added.
• The FGEC gathered ministers of energy and representatives of over 200 LNG producing firms from some 62 countries which account for 73 percent of the world gas reserves and 42 percent of the total output.