In the 5th IEF - IGU Ministerial Gas Forum held in New Delhi, MoS (I/C) for Petroleum and Natural Gas, Dharmendra Pradhan said that it provided an opportunity on deepening the dialogue on the role of Gas to enable an orderly energy transition that strengthens energy security, stimulates economic growth and enhances healthy energy market functioning, prosperity and well being globally. "On one hand the future of gas is bright but on the other hand established policies and business models require closer consideration in light of current energy market projections," he added. Pradhan expressed commitment to the IEF Producer - Consumer dialogue and welcomed initiatives to ensure the Gas can make an optimal contribution to a healthy energy future through a rolling dialogue and also enhances Gas market transparency.
Minister of State of the Ministry of Petroleum and Natural Gas of the Republic of India, Ministers, industry leaders, heads of international organizations, and energy market stakeholders of the member countries of the International Energy Forum (IEF), and the International Gas Union (IGU) gathered at the fifth Bienniel IEF-IGU Ministerial Gas Forum, hosted by the Government of the Republic of India.
Under the theme "Gas for Growth: Improving economic prosperity and living standards" ministers deepened their dialogue, while engaging with industry representatives as well as energy thought leaders on the role of gas to enable an orderly energy transition that strengthens energy security, stimulates economic growth and enhances healthy energy market functioning, prosperity and wellbeing globally.
Ministers discussed global market developments that are characterised by more abundant gas supplies, weaker than expected demand growth, and the global spread of new technologies that enables more diverse gas trade between global gas and demand centers in which Asia and liquefied Natural Gas (lNG) flows are rapidly increasing market share. They noted that this has made gas markets more competitive, and the terms of trade more short-term and flexible between a broader range of gas producers and consumers that stand to further benefit both.
They also acknowledged that increasing supplies on a more competitive global gas market creates new opportunities for gas importing countries to lock in supplies on more favorable terms. On the other hand enduring gas market supply abundance reduces investment incentives in the development of upstream gas resources. Growing gas trade volumes and opportunities may expose global gas markets to new risks and price fluctuations, as shifts in regional markets can propagate with greater ease across a better interconnected system. Delegates noted the importance of strengthening dialogue on a rolling basis, and that bilateral producer-consumer relations built up over the past decades remain critical for longer term gas market security.
Delegates recognised that a denser global midstream sector with more diverse pipeline and flexible lNG trade capacity should encourage governments to consider market reforms that reduce price, regulatory, infrastructure and other hurdles, and industry to consider more cost efficient operations and innovate on business models. For all stakeholders it would be important to seize the opportunity of more abundant gas supplies and trade in shaping healthier energy matrices that increase economic prosperity and living standards in both consuming and producing countries while delivering on globally agreed goals.
Noting that gas can be a driving force to help achieve an orderly energy transition, and is projected to make the largest contribution to societies across the world, when compared to other energy technologies in energy outlooks, delegates acknowledged that an enhanced producers-consumer dialogue on the evolution of gas markets is necessary for both governments and industry to seize on these opportunities arising on the medium term, and maintain longer term gas market security.