Fujairah: The head of the Gas Exporting Countries Forum (GECF), a group of 12 gas producing nations, does not believe that the United States shale gas will have a significant impact on market supply.
“The shale revolution is confined to the United States,” Seyed Mohammad Hussain Adeli, GECF Secretary General, told reporters in Fujairah last week.
The United States has trimmed its reliance on Qatar, which holds the world’s third largest gas reserves. Qatari gas exports to the US were just 7,320 million cubic feet (mcf) last year, significantly lower than the 90,972 mcf exported in 2011, according to data from the US Energy Information Agency.
Asked if Qatar, one of the GECF members, would be likely to lower its production output in a bid to prop up prices as US shale is sold to new markets, Adeli said “No, I don’t think so” insisting there will still be demand Qatari gas in the market.
Qatar has dropped its prices as US demand on energy imports decreases. In 2011, Qatar sold its liquefied gas (LNG) to the US for $5.82 (Dh21.35) per thousand cubic feet, last year it sold for $3.45.
Adeli instead shifted focus to Iran, which has been holding negotiations with the United States, Russia, China, United Kingdom, France and Germany since last year to remove sanctions on the Islamic nation’s economy.
Adeli, who was speaking at the Gulf Intelligence Markets Forum, said that the lifting of sanctions on Iran would be a “game changer” for gas markets. Iran has the second largest gas reserves in the world; however, it is unclear if sanctions will be lifted.
