Algiers Declaration condemns economic restrictions affecting gas development

Published at: 02/03/2024 09:22 PM

The absolute condemnation of unilateral coercive measures that negatively impact the development and commercialization of natural gas is one of the resolutions adopted in the Algiers Declaration, the final document of the 7th Summit of Heads of State and Government of the Forum of Gas Exporting Countries (FPEG). In this regard, member countries and observers agree that economic restrictions “endanger the security of natural gas supply”, a situation that Venezuela previously exposed through the Minister of People's Power for Petroleum, Pedro Rafael Tellechea.

Below are the commitments signed at the 7th Summit of Heads of State and Government of the Forum of Gas Exporting Countries (FPEG):

We, the Heads of State and Government of the member countries of the Forum of Gas Exporting Countries (GECF), at the invitation of His Excellency Mr. Abdelmadjid Tebboune, President of the Democratic and Popular Republic of Algeria, met in the historic city of Algiers on the 2nd day of March 2024 for the 7th FPEG Summit, in a spirit of solidarity and cooperation,

i) Remembering:

The Statements of the FPEG Summits held in Doha, State of Qatar, in 2011; Moscow, Russian Federation), in 2013; Tehran, Islamic Republic of Iran, in 2015; Santa Cruz de la Sierra, Plurinational State of Bolivia, in 2017; Malabo, Republic of Equatorial Guinea, in 2019; and Doha, State of Qatar, in 2022;

ii) Reaffirming:

a. The absolute and permanent sovereign rights of Member Countries over their natural gas resources;

b. Our commitment to the objectives of the FPEG and our determination to strengthen the role of the Forum, while emphasizing its contribution to global energy security, equity and sustainability;

c. Our efforts to efficiently manage and promote the use of natural resources, the gas resources of Member Countries, with the objective of promoting sustainable development that benefits both producers and consumers;

d. The importance of cooperation and coordination among Member Countries for the development of research, innovation, the transfer of knowledge and technologies related to natural gas, as well as for the exchange of best practices and the promotion of capacity development; and

and. Our support for a strong and meaningful dialogue between producers, consumers, and other relevant stakeholders, with a view to ensuring security of both demand and supply, promoting market stability and advocating for open, transparent, unhindered and non-discriminatory natural gas markets.

(iii) Recognizing:

a. The fundamental role of natural gas in achieving the United Nations Sustainable Development Goals, meeting growing global energy needs and ensuring universal access to affordable, reliable, sustainable and modern energy for all;

b. The contributions of green natural gas to address climate change challenges and its importance for achieving just, equitable, orderly, inclusive and sustainable energy transitions, while taking into account national circumstances, capacities and priorities, and that economic growth, social progress and environmental protection are the three intertwined and mutually supporting pillars of sustainable development;

c. The risks and challenges for the natural gas market derived from the geopolitical situation and economic situation, especially in terms of physical flows, market functioning, contractual agreements, sustainable investment flows and the integrity of critical natural gas infrastructure;

d. The paramount importance of security of demand for natural gas, transparency and discriminatory legal and regulatory frameworks, and predictable energy, trade, fiscal and environmental policies in natural gas importing and transit countries;

and. The need to adopt innovation-driven practices and scientifically guided research to enhance the important role of natural gas in improving access to energy and reducing energy poverty;

f. The important role of natural gas in the value chain of the petrochemical industry and the chemical industry in general, with a wide range of key end markets for achieving the United Nations Sustainable Development Goals, including the production of fertilizers to ensure global food security and eradicate hunger; and

g. The crucial need for security of demand and supply, and for open space and transparent international collaboration to protect critical natural gas infrastructure and improve resilience to natural disasters, technological incidents and man-made threats, including, but not limited to, the malicious use of information and communication technologies.

iv) Reiterating:

a. Our support to all countries in their relentless fight against energy poverty and in their efforts to bring prosperity to their people, as well as in the exercise of their fundamental rights to develop their energy resources;

b. Our condemnation of all unilateral economic restrictions undertaken without the prior approval of the United Nations Security Council, and any extraterritorial application of national laws and regulations against GECF Member Countries that negatively impact the development and trade of natural gas and endanger the security of natural gas supply;

c. Our concern about the recurring volatility in demand for natural gas that hurts global economic performance and our determination to work with all parties to achieve balanced and reliable natural gas markets; and

d. The importance of medium and long-term natural gas contracts, equitable and stable natural gas prices and sustained investments in natural gas to improve energy security and support the development of resilient energy systems.

v) Expressing:

a. Our determination to strengthen our collaboration to maintain the reliability and resilience of natural gas systems, provide efficient and reliable natural gas supplies, and expand the use of natural gas for sustainable development and mitigation and adaptation to climate change;

b. Our call for timely investment for market stability and the unimpeded flow of financial resources, access to technology and knowledge transfer in a non-discriminatory manner;

c. Our warm welcome to the signing of the GECF Gas Research Agreement, based at the Institute, based in Algiers;

d. Our determination to promote innovative technologies for natural gas and connected industries, through the Gas Research Institute, for the benefit of GECF member countries;

and. Our rejection of any use of climate change as a justification for implementing measures that hinder investment in natural gas projects and create any means of arbitrary discrimination or disguised restriction in direct contravention of international trade rules;

f. Our strong support for African countries in their aspirations and commendable efforts to address energy poverty, address challenges related to access to energy and promote sustainable, equitable and inclusive socio-economic development, while protecting the environment, in line with the United Nations 2030 Development Agenda and Agenda 2063 of the African Union;

g. Our rejection of any artificial intervention in natural gas markets, including attempts to alter the pricing and risk management functions of markets, as well as the imposition of politically driven price caps, which can only aggravate market rigidity and discourage the investments needed to meet growing global energy demand; and

h. Our disapproval of the unilateral implementation of unprecedented actions and fiscal measures, which are supposedly justified by guaranteeing energy supply security for some, at the expense of natural gas market regulations, and with the risk of accentuating imbalances to the detriment of people in vulnerable situations.

Resolve our common determination to:

1. Promote natural gas as an abundant, affordable, flexible and reliable energy to obtain, exploit and develop more environmentally friendly, efficient and sustainable natural gas technologies;

2. Advocate for greater use of natural gas in domestic and international markets, especially as a strategic measure to address energy poverty and pursue the United Nations Sustainable Development Goals. This includes defending natural gas as a fundamental source of energy for a just, inclusive and prosperous future, ensuring that no one is left behind;

3. Contribute to the inclusion of natural gas as an environmentally sustainable natural resource in climate, investment and fiscal regulations, international banking and global trade;

4. Encourage the increased use of natural gas in maritime and land transport, and develop the necessary infrastructure to provide it efficiently and cost-effectively to all consumers;

5. Support the fundamental role of long-term natural gas contracts, as well as the price of gas based on the indexation of oil and its petroleum products, to ensure constant investments in the development of natural gas resources;

6. Strengthen the position of the FPEG by increasing its international visibility, attracting new members, fostering partnerships, facilitating dialogue between producers and consumers, and expanding cooperation with relevant international organizations and entities;

7. Support the further development of the experience and mechanisms of the FPEG for joint commitments, in order to take advantage of the role of the FPEG as a leading platform for dialogue and cooperation on natural gas;

8. Take advantage of the GECF Gas Research Institute to expand cooperation, among other things, in natural gas technologies, scientifically guided research and capacity building based on innovations; and

9. Highlight the crucial importance of safeguarding critical natural gas infrastructure, including cross-border infrastructure, to ensure its reliability and resilience, as well as strengthening international cooperation in risk reduction, prevention and protection against natural disasters, technological misfortunes and man-made threats, including deliberate attacks and malicious use of information and communication technologies, as appropriate.

The Heads of State and Government welcomed the accession of the Republic of Mozambique, the Islamic Republic of Mauritania and the Republic of Senegal to the Forum, reaffirming the collective quest of the FPEG to promote cooperation and dialogue in the field of energy.

The Heads of State and Government of the member countries of the Forum of Gas Exporting Countries express their gratitude to His Excellency Mr. Abdelmadjid Tebboune, President of the Democratic and People's Republic of Algeria, for his excellent leadership of the seventh GECF Summit, as well as to the Government and people of the Democratic and People's Republic of Algeria for their warm hospitality and excellent arrangements.

Mazo News Team