Dec 17, 2017, 2:05 PM
News Code: 82766434
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Oil ministry official urges the need to preserve gas market security

Tehran, Dec 17, IRNA – A senior official at Iran's Ministry of Petroleum has urged gas consumers and major gas companies to 'fulfill their obligations towards gas market security.'

Director General of the Ministry's Public Relations Kasra Nouri made the remarks in an article appeared on the latest issue of Iran Petroleum monthly, a magazine affiliated to the Ministry of Petroluem.

The full text of his article follows:

Sustainable energy supply continues to remain a major cause of concern in the world. Given the difficulty and complexity of oil extraction and high costs of energy production from renewable energies on one side, and environmental challenges stemming from crude oil and coal burning on the other, have made natural gas the top clean fuel of choice and the most favorable source of energy in global markets.

Add to this the necessity of striking a balance between growing demand for gas and its supply. That could not materialize without new investment in this sector.

Having these issues in mind, member states of the Gas Exporting Countries Forum (GECF) held a summit during 23-24 November in Bolivia. Attraction of investment in the natural gas supply chain and implementing convergent policies with the objective of financing gas projects were among the issues raised as grounds for their cooperation.

GECF member states hold 67% of world's total natural gas reserves. They produce 44% of global gas and account for 66% of liquefied natural gas (LNG) trading. They maintained in their summit that enhanced cooperation in the gas industry would be the main factor in the balance between supply and demand. For them, working out mechanisms to counter factors that disturb the supply and demand security would rest with both producers and consumers. That is the most important message of the GECF summit to the industrialized and developing countries.

Gas producers and consumers are mutually responsible for the future of gas industry. Even it could be argued that market instability and lack of supply-demand balance would threaten the economic resources of producers, energy supply as well as development and social plans in consumer countries.

Gas supply security and enhanced production require long-term investment, and consuming countries have to assume their part of responsibility.

Addressing the GECF summit in Bolivia, Iran's First Vice President Es'haq Jahangir told the audience that Iran had paved the ground for attracting investment and facilitating the partnership of international companies.

Gas consumers and international gas companies are expected to abide by their commitments vis-à-vis the market and fulfil their obligations towards gas market security and stability through joint investment, exchange of technical knowhow and transfer of technological savvy. That would allow their own people benefit from the advantages of this low-cost and clean source of energy.

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