Saudi Arabia Proposes to Create OPEC+ Analogue For Gas Market

Saudi Arabia Proposes to Create OPEC+ Analogue For Gas Market
The Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud

The gas market needs a similar regulatory mechanism as OPEC+, the Saudi Energy Minister said during his speech the Russian Energy Week International Forum in Moscow on Thursday.

During the panel discussions, Prince Abdulaziz bin Salman Al Saud said the situation in the markets for natural gas, liquefied natural gas (LNG) and coal, which are experiencing a period of price peaks, is caused by insufficient investments in these industries and a lack of regulation like OPEC+, the Moscow-based TASS news agency reports.

“We are already seeing a 500% rise in gas prices, very high coal prices and a 200% rise in LNG prices,” Abdulaziz bin Salman Al Saud said, adding that if these markets received the same level of attention as the oil market received from OPEC+, then the situation there now would be much better.

"If we look at the gas and coal market, we will see that they need this type of regulator. Perhaps they should just copy-paste and repeat what we are doing on the oil market," the Saudi Energy Minister suggested.

He said OPEC+ would be adding 400,000 barrels per day (bpd) in November, and then again in the following months.

In early October, OPEC + revised its forecast for oil demand in 2022, saying that it expects an increase of 4.2 million barrels per day (bpd), up 0.9 million bpd from the previous estimate. As a result, global oil demand in 2022 could reach 100.8 million bpd versus 96.7 million bpd in 2021.