Baku, Azerbaijan, Dec.27
By Leman Zeynalova – Trend:
Gas demand is significantly affected by unclear and unstable policies, Gas Exporting Countries Forum (GECF) told Trend.
The organization said that oil and gas majors are faced with a number of challenges related to energy policies, technology shifts, slow pace of natural gas demand growth and of course price level and price volatility.
“For natural gas exporters they faced additional challenges due to limited visibility in gas demand in key gas consuming region(s). Gas demand is significantly affected by unclear and unstable policies that often do not recognize the crucial role of natural gas as a leading fuel in the transition to a clean and sustainable energy future,” said GECF.
Countries in Asia and Europe still supporting coal despite its high carbon intensity as well unclear policies on the future role of nuclear energy in some countries, according to the organization.
“On the other hand, price volatility and instability of the gas market is exposing investment in gas projects with risks and uncertainty that impact gas/LNG projects and thus gas/LNG supplies,” said GECF.
GECF said it strongly believes that the security of gas demand and stability of market are prerequisites to secure funding and investment for capital-intensive projects and security of supply.
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