29 Mar 2024
Tuesday 5 November 2013 - 13:17
Story Code : 62408

Iranian Oil Minister: Energy producers face demand security requirement

TEHRAN (FNA)- Irans Oil Minister Bijan Namdar Zanganeh said security of energy demand is one of the most significant criteria for energy producers to meet in a bid to guarantee investment in their energy sectors.


Energy is the focus of talks in all international bodies and energy poverty and uneasy access to energy has made energy security the most important issue for the countries, Zanganeh told the fifteenth ministerial meeting of Gas Exporting Countries Forum in Tehran on Sunday.

He estimated that the gas share of countries energy mix will be up 26 percent by 2035.

Important economic and environmental advantages of natural gas has made this clean fuel an important element which will be able to meets the requirements for sustainable development in the 21st century, Zanganeh said.

Organized competition and cooperation among gas producing countries, while respecting regional markets is a pillar of energy security which will open the way for optimal and economic production from the resources and reserves, the Iranian minister said.

Zanganeh said: Since gas projects are [defined for] the long term, the producers and the consumers understanding of energy supply and demand security could boost mutual confidence.

The Iranian minister, who is presiding over the GECF ministerial meeting, referred to some problems faced by gas producers, saying: One the one hand, a sharp fall in the market prices threaten the profitability of projects, causing projects risk to increase and consequently more doubts and ambiguities will be cast on long-term gas supply.

On the other, sharp price hikes has caused unconventional gas production to grow, giving rise to challenges to the interests of conventional gas producers, he added.

Zanganeh said gas producers may rival in development, capacity building, market share and using modern technologies, but they share interests.

Supporting our sovereignty on gas reserves, increasing the share of gas in the world energy mix, access to fair revenues and protecting the interests of all generations are the common interests of producers, he added.

Zanganeh noted that gas is facing such challenges as hard financial conditions and exorbitant costs of acquiring new technologies.

Currently, GECF is an intergovernmental institute comprised of 17 member states...from across the world and seeks to increase its share and influence in the world energy market, said the minister.

GECF members account for 42 percent of the worlds gas production, 70 percent of the worlds gas reserves, 38percentof pipeline gas transmission and 85 percent of liquefied natural gas (LNG) trade.

Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, Venezuela, the United Arab Emirates and Oman constitute the 13 member states of GECF. The Netherlands, Kazakhstan and Norway have observer status and Iraq has recently joined the forum.

Zanganeh said GECF must draw up a roadmap based on a new approach in a bid to promote its status in the international energy market.

To that end, such issues as development of cooperation among member states, exchange of experience and technology, promotion of cooperation for adopting common politics in production regions and development of market must be taken into consideration, he added.

Zanganeh also said the GECF must interact further with international bodies like the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC).

By Fars News Agency

 

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