CAIRO, Egypt — The Gas Exporting Countries Forum meeting next week will discuss ways of stabilizing gas prices, Qatar Oil Minister Abdullah bin Hamad al-Attiyah said Friday.
“Limiting the supplies in most of the contracts is impossible because they are long-term contracts,” al-Attiyah said. “But we are going to see and discuss how to stabilize the gas price. Gas should have a premium. It is a clean fuel, it’s a choice fuel.”
Utilities such as E.On and GDF Suez buy most of their gas under supply contracts linked to the cost of crude-oil products that are valid for as long as 30 years. The accords have take-or-pay clauses requiring them to take minimal volumes or pay a penalty.
Demand for gas in Europe dropped by a “record” 5 percent to 7 percent this year, Gazprom Deputy CEO Alexander Medvedev said last month. Gazprom is the world’s biggest gas producer and Europe is its main market.
A bloc of gas producers is a reality as Russia seeks to limit oversupply of the fuel, Herman Franssen, president of International Energy Associates, said at a conference.
Qatar will host a meeting of the Gas Exporting Countries Forum of 11 nations on Dec. 9 to discuss sagging world markets.
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