ALGERIA, March 2Countries participating in the Gas Exporting Countries Forum (GECF) expressed their rejection of any artificial interference in the operation of gas markets, including the introduction of “price ceilings” that cause shortages in the market, follows from the Algerian declaration adopted by the organization.
The extraordinary meeting of ministers and the seventh summit of heads of state and government of the countries — members of the Gas Exporting Countries Forum are being held in Algeria on March 1 and 2. During the forum events, the Algerian Declaration was adopted.
«Our opposition to any artificial interference in natural gas markets, including attempts to change pricing and risk management functions, as well as the introduction of politically motivated «price ceilings» that could will only worsen supply shortages in the market and discourage investment needed to meet growing global energy demand,» the document says.
GECF countries also condemn unilateral, unprecedented actions and tax measures that are justified “allegedly to ensure security of energy supply for some at the expense of gas market rules and at the risk of widening imbalances to the detriment of the most vulnerable.”
Since February 2023, the European Union has launched a temporary mechanism for correcting the gas market with a floating price limit — a gas price ceiling. It will be automatically launched when the monthly futures price in Europe's largest gas hub TTF exceeds 180 euros per megawatt-hour for three working days and at the same time when this price is 35 euros higher than the indicative price of LNG on world markets. The instrument was valid for a year, but the European Commission may propose its extension.