In 2010, the GECF held two Ministerial Meetings - in Oran, Algeria in April and in Doha in December. The 10th Ministerial Meeting was an opportunity to exchange views on the latest and mid-term developments in the natural gas market, assess their impact on the GECF countries and provide guidelines for the newly established Secretariat.
The ministers agreed that ensuring adequate and reliable supplies of gas at prices reflecting parity with oil prices is a challenge, considering that natural gas is an essential part of the fuel mix and plays an important role in satisfying the global need for an environmentally friendly energy source.
They also supported the increase of energy security by means of cross investments and technological exchange without unjustified barriers (especially those related to carbon taxation) between consumers and producers based on their growing mutual interdependence; therefore, the Ministers encouraged a model in which a gas consumer may participate in upstream and gas infrastructure development projects in a producer-exporter country, while a gas exporter may invest in mid and downstream networks and other gas facilities on a consumer side.
The acknowledgement of the relevant results of the report on the "International Gas Market Outlook to 2015" presented by Algeria, the assessment of the possibility of organizing a future Gas Summit of the GECF and the invitation to other gas exporting states that support the GECF Statute to become part of the organization as Members and Observer Members were part of the decisions of the 10th Ministerial Meeting.
One of the main conclusions of the 11th meeting of the GECF Ministers in Qatar was to hold the 1st Gas Summit of the Forum in 2011 in Doha and the creation of a High Level Ad Hoc Group to prepare this event.
Furthermore, the 11th Ministerial Meeting agreed on the creation of a Steering Committee to study the Evolution of the gas market and the outcomes of the global gas model; followed up the status of the studies requested on important aspects of the gas industry. Additionally they overviewed the latest developments in the international gas market and their impact on the Member Countries; discussed the most effective ways and means of enhancing cooperation among the members of the Forum as a prerequisite for developing a stable and transparent gas market; expressed concern about the current gas prices threatening investments in new fields and gas infrastructures; stressed that the gas prices should reflect the parity with oil considering the advantages of natural gas; made reference to the European Union's plans to introduce new gas-market related legislation, and confirmed the authorities of the GECF for the following year (Egypt as President of the Ministerial Meeting and Trinidad and Tobago as Alternate President; the respective Trinidadian and Egyptian EB Members as Chairman and Alternate Chairman of the Executive Board).
During the 12th Ministerial Meeting held in June in Cairo, the Ministers emphasized the importance of dialogue between producers and consumers for the purpose of achieving stable gas market; the timeliness of a mechanism to achieve balanced and fair gas prices for both parties, and the necessary cooperation between producers and consumers to support and sustain the required investments to develop the gas reserves in the producing countries and exchange of know-how and technologies in that regard,at the same time taking into account that meeting local demand for natural gas in the producing countries is a priority. The Ministerial Meeting recognized the growing consolidation of the organization and its importance as a space for the exchange of views and coordination and, considering the short-term gas market developments and the challenges facing the natural gas industry, as well as the current economic and political world scenarios, underlined the role of the GECF as a factor of stability and cooperation among Member Countries of the Forum and consumer countries. The Ministers stressed the importance of long-term contracts and fair pricing for natural gas, at levels reflecting market fundamentals and parity with oil prices.
First GECF Gas Summit
Preparations for holding of the First Gas Summit of Heads of State and Government of the GECF Member Countries stayed as one of the main topics of discussions for the 13th Ministerial Meeting held in Doha in November 2011. During this meeting the Ministers approved the Program of Work and Budget of the GECF for year 2012 and the appointment as per the Statute of the authorities for 2012 (President and Alternate President of the Ministerial Meeting: Equatorial Guinea and Russia; Chairman and Alternate Chairman of the Executive Board: the Russian and Equatorial Guinea EB members, respectively). The Ministers welcomed Oman as new Member of the GECF, highlighting the reinforced position of the Forum in the international energy community and re-elected HE Leonid Bokhanovskiy as the GECF Secretary General for the years 2012-2013.
The 1st GECF Gas Summit was held in Doha on December 15th 2011 and was unprecedented for the meeting of the organization in terms of level of participants and the scope of its concerns. The Summit was attended by the Sovereigns, Presidents, Heads of State of Algeria, Iran, Nigeria, Equatorial Guinea, Bolivia, Russia, and Oman. Kazakhstan, Norway, the Netherlands and Venezuela were represented by the Ministers of Energy. The Summit participants stressed that the Gas Exporting Countries Forum is nowadays actively working towards elaborating best ways to meet the actual challenges of the regional and global gas markets, harmonizing in the long run the relations between gas producers and consumers, launching an adequate dialog between them.
One other main issue under discussion was the definition of the place and role of natural gas in the construction of the low carbon economy, the pairing of gas with the development of alternative energy and the promotion of its environmental advantages. The outcome document of the Summit underscored the common desire of the GECF Member Countries to constructively contribute towards development of transparent, efficient and competitive regional and global gas markets able to withstand current and future risks and challenges.
Between 2009 and 2012 the Executive Board has met 10 times with concrete and fruitful results related to the development of the internal structure of the Forum and the strengthening of its capabilities. Additionally, several meetings of Working Groups or Specialized Bodies created in accordance with the Statute have contributed in fulfilling the mandates of the Ministers in such areas as Long-Term Strategy, 5-Year Working Plan for the Secretariat, Data Reporting Mechanism, and Gas Summit.
Fostering dialogue
2012 was marked by the Forum full-frame engagement in research and gas market modelling activity. The Secretariat prepared forecasts for the market developments for the short term on regular basis and conducted several studies and research projects. Completion of the first phase of the GECF Global Gas Model development was a significant contribution to in-house research activity and long term scenario development. Also, a lot of effort was made to establish data exchange between the GECF Member Countries to improve the quality of data available.
The 2nd Gas Summit of the Gas Exporting Countries Forum convened in Moscow, the Russian Federation on July 1st, 2013. Hosted by HE Vladimir Putin, President of the Russian Federation, the Summit was attended by Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Oman, Qatar, Russia, Trinidad and Tobago, United Arab Emirates and Venezuela as well as Iraq, the Netherlands, and Norway as Observers and IEA, IEF and OPEC as guest international organizations.
The Summit reinforced the commitment of the GECF to its mission and objectives. The outcome of the Summit is the 'Moscow Declaration' in which Member Countries unanimously affirmed to strengthen GECF, enhance global scale coordination to protect the interest of GECF, preserve principles of international trade as well as uphold the fundamental role of long-term gas contracts and continue to support gas pricing based on oil/oil products indexation.
The Heads of State and Government also committed to foster the consistent growth of natural gas usage, promote the expansion of natural gas utilization in different sectors, and encourage GECF dialogue with all market players and stakeholders, to promote gas as a driver for environmentally friendly economic growth and social development.