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Secretary General of Gas Exporting Countries Forum: Situation in Middle East regarding gas is critical due to Strait of Hormuz

St. Petersburg, June 04 /QNA/ Philippe Michelilla, Secretary General of the Gas Exporting Countries Forum, confirmed that the situation in the Middle East regarding gas is critical, as about 20 percent of liquefied natural gas supplies have been withdrawn due to the closure of the Strait of Hormuz.

He added, during his speech at the St. Petersburg International Economic Forum (SPIEF) today, that the overall situation during this year depends on the timing of the reopening of the Strait of Hormuz, noting that he expects a decline in supplies by between 1.7 percent and 4.1 percent by the end of this year, depending on the date of the strait's reopening.

He pointed out that the impact is not limited to liquefied natural gas and gas in general, but also includes supplies of helium and fertilizers, affecting developing countries, adding that this year will be particularly difficult for many countries due to low agricultural production, so the economic repercussions will be wide-ranging.

He explained that over the past six years, geopolitical events and other types of crises have been occurring almost annually, which is a new reality that must be adapted to.

He continued: 'I think that coming to terms with this means the need to redesign the entire energy system based on this reality, namely that these shocks will inevitably occur, and we may not know their location, timing, or type.'

For his part, Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz said during his speech at the St. Petersburg International Economic Forum that the world needs every atom of energy, indicating that as producers of energy, oil, or gas, they will continue production and export as long as it is economically viable.

He added: 'We must challenge this reality and continue to pursue our ambitions, because we cannot sacrifice the future of coming generations, and we have the ability to prove to the entire world and to everyone that we will remain a reliable supplier of energy in all circumstances.'

For his part, OPEC Secretary General Haitham Al Ghais forecast continued demand for energy, noting that OPEC, based on its data, expects global oil demand to continue at about 1.2 million barrels per day during 2026.

Al Ghais added that despite the geopolitical tensions in the region, the organization has not changed its positive estimates for energy demand, noting that the slowdown seen in some economies over the past two months has not significantly affected global oil consumption, and that the flow of people to cities to live in the coming years will boost energy demand due to the need to build more facilities and services such as airports, schools, and hospitals, which increases oil demand.

In the same context, Russian Deputy Prime Minister Alexander Novak stressed the need to reassess the global energy market as a whole.

Novak pointed out that the market suffers from a shortfall of about 12 million barrels per day, and that there are pressures on supplies due to geopolitical crises and low investment in the energy sector.

Gas Exporting Countries Forum

Strait of Hormuz