Producing nations try to place pure gasoline as sustainable vitality for the transition | Economy | EUROtoday

Stabilizing the value of pure gasoline, which has fluctuated between January 2023 and February 2024 between $30 and $50 per megawatt hour, after having exceeded $200 two years in the past initially of the Russian invasion of Ukraine, has been one of many central goals of the Forum of Gas Exporting Countries (FPEG), concluded this Saturday in Algiers, whose members personal 70% of the world's confirmed reserves and management half of world exports. The primary producers have additionally fought on the summit held within the Algerian capital to place pure gasoline as sustainable vitality for the ecological transition

This week the Forum introduced collectively representatives from Russia, Venezuela and Iran, whose delegation was led within the remaining session on Saturday by President Ebrahim Raisí, together with leaders such because the Emir of Qatar, Tamim bin Hamad al Thani, and the President of Bolivia, Luis Arce. In the conclusions of the so-called Algiers Declaration, a dozen nations have dedicated to selling dialogue between consumers and producers to revitalize their advertising and marketing.

The remaining textual content has included reproaches for the sanctions imposed by the West on Venezuela, Iran and Russia, the president of Iran warned that his nation is keen to “become the energy center of the region and a safe route for the distribution and transit of gas”. The Algiers Declaration has also rejected “unilateral economic restrictions without prior approval of the United Nations Security Council.”

Former Algerian minister Abdelatif Rahabi specifies that the gas conclave meeting in his country does not represent “just another organization from the global south.” “The EGPF is above all an economic organization, and we must not forget that the United States and Norway [no integrados en el foro] “They are among the many primary gasoline exporters on the earth,” highlights this veteran diplomat, who participated four decades ago in the negotiation of gas supply agreements from Algeria to Spain. “At this summit it has been considered that gas is a relatively clean raw material with a future,” he points out, “while Western countries, which had marked this energy as polluting, have changed their minds when world production has been altered. for the war in Ukraine.”

The meeting of producing countries in Algiers has emphasized establishing long-term agreements. “Gas has become a geostrategic issue,” concludes Rahabi. “For example, relations between Algeria and Spain have withstood all bilateral diplomatic crises. The presence of Iran or Venezuela at this summit does not condition Algeria's foreign policy, since geography imposes a commercial agenda with Italy (which covers 40% of its gas needs) and Spain (30%).”

The Spanish energy company Naturgy and the Algerian state gas company Sonatrach have had a sales and purchase agreement for two decades for the natural gas that travels through the Medgaz, which enters Spain through the Almeria coast and which, after closing in 2021, by decision of Algiers , Maghreb-Europe, which connected both countries via Morocco, is the only asset between Africa and the Iberian Peninsula. This contract guarantees supply until 2030, but price negotiations are carried out year by year, almost always in an expired year. In October of last year, both companies reached an agreement for 2022, with a substantial – although not quantified – upward revision. This year, the price negotiation – which runs parallel to a complex diplomatic relationship – has not yet concluded.

Gas as a “sustainable solution”

“Gas is a solution,” proclaimed the Algerian Minister of Energy, Mohamed Arkab, when presenting the final declaration, which highlights the importance of gas to achieve a “just, equitable, orderly, inclusive and sustainable energy transition.” Established in 2001, the EGPF is made up of a dozen permanent members (Algeria, Russia, Venezuela, Bolivia, Trinidad and Tobago, Egypt, Equatorial Guinea, Libya, Nigeria, Iran, the United Arab Emirates and Qatar) and seven observer countries (Peru , Iraq, Azerbaijan, Malaysia, Mauritania, Angola and Mozambique), to which Senegal and Mauritania now plan to join

Abderramán Mebtul, former director of studies at the Algerian Ministry of Energy and one of the main gas experts in the Maghreb country, points out that the Algiers summit aimed to “favor the inclusion of gas as a sustainable raw material in the energy transition aimed at combating global warming”. He estimates that between 2035 and 2050, between 65% and 70% of vitality might be made up of a mixture of pure gasoline and renewable vitality.

In Algiers, exporting nations have sought to revive belief with buying nations to make sure market stability, within the midst of European sanctions in opposition to Russia for the War in Ukraine and the battle pressure that impacts maritime transport within the Red Sea.

They additionally search to enhance the effectivity of their manufacturing. Thus, Algeria consumes half of the gasoline it produces, in an inside distribution that’s sponsored. In addition, it should reinject as much as 20% of the gasoline it extracts to stop the wells from drying out. The Maghreb nation additionally faces the problem of growing the so-called trans-Saharan gasoline pipeline, with a size of greater than 4,000 kilometers, to Nigeria, and at a price of 20 billion {dollars}, over a interval of 5 years of works all through Niger. This main pipeline comes into competitors with the Nigeria-Morocco undertaking, with a price of 30,000 million {dollars} and an execution interval of about 10 years, throughout 5,600 kilometers alongside the coasts of northwest Africa and crossing a number of nations. , together with the territory of Western Sahara.

Follow all the knowledge Economy y Business in Facebook y Xor in our publication semanal

_