- GIIGNL is an international association of 84 companies involved in more than 90 per cent of the world’s LNG trade.
- The potential reduction or disruption of Russian natural gas supplies to Europe and the growing volatility of energy prices have become major issues that could jeopardize economic stability in Europe.
- In order to preserve LNG’s affordability, it is therefore critical to invest in all stages of the LNG supply chain.
As per reports by offshore energy GIIGNL, an international association of 84 companies is in efforts to secure Europe’s LNG supply.
About GIIGNL and its statement
GIIGNL is an international association of 84 companies involved in more than 90 per cent of the world’s LNG trade. Its first introduction was more than 50 years ago.
Specifically, GIIGNL is promoting:
- Activities to improve safety and efficiency of LNG import by encouraging the sharing of experience between operators across the LNG chain;
- Dialogue to address contractual and logistical obstacles to LNG trade;
- Initiatives to enhance sustainability and drive transparency on GHG emissions from the LNG chain.
As energy security is of increasing concern in the world, GIIGNL, issued its statement on the topic.
The potential reduction or disruption of Russian natural gas supplies to Europe and the growing volatility of energy prices have become major issues that could jeopardize economic stability in Europe.
Without supportive policy and regulatory frameworks, many countries will be at risk of energy shortages. Therefore, they will be forced to burn increasing amounts of coal and oil, compromising the attainment of net-zero ambitions.
Commercial LNG trade and potential economic growth
Commercial LNG trade has expanded to involve 44 importing markets and 20 exporting countries at the end of 2021, with a fleet of 640 LNG vessels. LNG now accounts for more than half of the international natural gas trade.
In the future, economic growth will nevertheless continue to generate additional demand for natural gas imports, resulting in the near term in a tight global LNG market.
In order to preserve LNG’s affordability, it is therefore critical to invest in all stages of the LNG supply chain; from production to liquefaction, shipping, receiving terminals, and storage.
Given the times required to develop new LNG projects, the combination of efforts from importers, governments, producers, and financial institutions is urgent to enhance energy security around the world. It is also to support economic stability while enabling decarbonization.
Jean Abiteboul, president of GIIGNL, said: “The recent Russia-Ukraine conflict is highlighting the importance of energy supply security and diversification. The LNG market is growing quickly and the recent price hikes indicate a structural imbalance between demand and supply growth. On the pathway to a decarbonized world and in the face of looming energy shortages, cooperation between importers, governments and producers is urgent in order to fast-track investments in all stages of the LNG supply chain and to implement all possible measures to guarantee reliable LNG supplies.”
GIIGNL feels now is the time for the relevant stakeholders to join forces in order to enable energy security, economic stability, and emission reduction by facilitating new investments in LNG. Its members are ready to work closely with all stakeholders in order to guarantee stable, affordable, and flexible access to LNG imports, it said.
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Source: Off-Shore Energy
