Putin Calls Russia One of Key Players in Global Gas Market

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vladimir putin, gas exporting countries forum (gecf), russia, liquefied natural gas (lng), gas, natural gas, russian gas, gas supplies

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"Russia is one of the key players in the global gas market. We rank first in the world in terms of natural gas reserves and second in terms of its production," Putin said at the Gas Exporting Countries Forum (GECF) summit in Moscow.

Any attempts to exclude Russia from the global gas market have serious consequences, including rising costs for other countries, Putin explained.

"We have created a unique production complex that allows us to diversify gas supplies, develop its processing and gas chemistry. We use this powerful resource, scientific, and industrial base to grow the national economy and at the same time act as a responsible supplier of gas abroad, a reliable, predictable partner," Putin said.

Europe is dealing a blow to its own industry and the social sector by shunning Russian gas, Putin added.

Vladimir Putin called for strengthening cooperation among gas-exporting countries, with a focus on relying on sovereign technologies.

"To address the challenges facing the global gas industry, we must not erect barriers; on the contrary, we need to strengthen cooperation, first and foremost among gas-exporting nations. This should be done by leveraging our own capabilities and sovereign technologies, while fostering open, trust-based collaboration rooted in the principles of mutual benefit and respect for each other's interests," Putin said.

The main problem in the global gas market today is related to supply disruptions, as large volumes of supply have been lost from the market, the Russian president added.

"It is necessary to work on optimizing transport routes, taking into account the geographical location of the forum's member countries," Putin said.

Global gas prices have risen sharply, but they could just as sharply fall back, Putin said.

"Prices have risen sharply, but we understand that they could just as sharply fall back, returning to their previous levels," Putin said.

The global gas industry is currently experiencing upheavals, the Russian president added.

The Gas Exporting Countries Forum member countries account for 70% of global gas reserves, Vladimir Putin said.

"Collectively, the forum participant accounts for 70% of the world's natural gas reserves and about 40% of its global exports," Putin said.

Dialogue among GECF member countries is developing without behind-the-scenes intrigues or attempts to manipulate the market, Putin underscored.

GECF countries make a significant contribution to ensuring global energy security, Putin added.

"Each country determines for itself which type of generation to develop: hydrocarbon, nuclear, hydropower or renewable energy sources. However, today a quarter of the energy balance of the planet is accounted for by gas," Putin said.

The role of natural gas as a pillar of global energy in international trade will only strengthen, Putin concluded.

The global gas demand will grow to 5.5 trillion cubic meters per year by mid century, while international supplies will amount to 1.7 trillion cubic meters, Vladimir Putin said.

"It is expected that such trends will continue, and by the middle of this century, global gas demand will increase to 5.5 trillion cubic meters per year. International supplies will increase by about 1.5 times and amount to 1.7 trillion cubic meters," Putin said.

About half of the world's gas trade now consists of LNG, Putin said on.

"LNG now accounts for about half of the global gas trade," Putin said at the Gas Exporting Countries Forum summit in Moscow.

The joint actions of the OPEC+ ensure predictable oil market conditions, as well as stable supply volumes, Vladimir Putin said.

"There is a successful multilateral experience in balancing another key hydrocarbon market — oil, where joint actions in the OPEC+ format have ensured market predictability and stable supply volumes," Putin said.

Investments in the gas industry must be long-term, Vladimir Putin said.

"Clearly, we are talking about large-scale, long-term investments, and one cannot rely solely on the current high-price environment. Such investments should, first and foremost, be based on long-term contracts, arrangements where a gas buyer plans energy supplies for the economy, the social sector, and development of the territory, etc. over the long term, while the gas supplier gains certainty regarding sales, allowing them to invest in new projects with a guaranteed return," Putin said.

Vladimir Putin proposed to expand consultations in the Gas Exporting Countries Forumformat on crisis situations in the global gas market.

"In the gas sector, it is necessary to build our own effective mechanisms of interaction. In this regard, we propose to expand consultations within our forum on crisis situations in the gas market in order to timely assess risks, including physical threats to the gas infrastructure, and coordinate supply approaches," Putin said.

Global demand for gas will continue to grow, and it is necessary to increase its supply, Putin added.

"The Gas Exporting Countries Forum, its participants and observers, have the resources and capabilities to solve the most difficult tasks in the gas industry and in the entire global energy sector," Putin said.

Russia, for its part, is ready to make a significant contribution to this work, Putin added.