00:07The second day of St. Petersburg International Economic Forum focuses on the global economy, in particular the energy sector.
00:16And joining us now from St. Petersburg is our Business Lead Editor, Najib Aruf.
00:24All right, at St. Petersburg International Economic Forum 226, SPF 226, of course, there's a huge presence of GCCC countries,
00:31and of course, one of the main topics being discussed here is about the energy sectors.
00:35How is it facing the geographical tensions and uncertainties, given that the current situation is happening in the Hormuz Street
00:42currently?
00:43We would like to dig further on this issue and the current situation facing the market.
00:49Joining me is Mehmet Dowen, Managing Director of Gas Day. Mehmet, thank you so much for joining us.
00:53How do you see the energy sector, especially in the GCC region, is facing the uncertainty, geographical uncertainty currently?
01:01Yes, actually, the uncertainty started with the pandemic, as you know.
01:05In 2020, we experienced a very low prices at the market because of the demand was so low.
01:13Later on, demand was okay. I mean, it was fine.
01:16And the prices went up. But in 2022, we experienced a different crisis between Russia and Ukraine.
01:25It was a kind of conflict. And the price again went up, especially in Europe.
01:30And also, the LNG market in Far East also highly impacted on that.
01:39Then on, European demand also decreased. Actually, demand destruction. It was a demand destruction.
01:48And China switched coal from the LNG. And that really helped the market.
01:54But now we have a different crisis. And I think it's the biggest crisis.
01:58We cannot compare the crisis with the Russian-Ukraine conflict because it has an impact on every type of commodity.
02:05Not only, you know, not only gas, but also, you know, liquid form of every type of petroleum product, including
02:14fertilizer.
02:14So that crisis is not going to end. I hope that they are going to, I mean, all the states
02:23will think once more about their action.
02:28Because if it continues in that manner, it will have a really big and deep impact.
02:34And that impact will be permanent one.
02:36You are dealing with a lot of oil and gas services company in that sense. How do they maneuver this
02:41situation?
02:41So it's difficult to handle this situation, to be quite frank with you.
02:46Because already, you know, Qatar LNG facilities hit by the drone attack.
02:54And that is not an easy situation. Train 4 and 6 has been impacted.
02:59And this will, you know, the delivery time of the call box and the other critical equipment probably will take
03:07five years to recover.
03:09And it's difficult. I mean, the idea, I mean, here, what is the difficulty we'll have on our head?
03:20How, who is going to be, who is going to afford to procure the commodity? That's the critical one.
03:27Because it's sure that we will have a lack of energy.
03:32So the key word is risk for impact for most of the countries in the world?
03:35Yes, yes, yes.
03:37All right. Mehmed, thank you so much. There's a very short answer to that.
03:41Of course, the discussion might be long in regards to energy sector. Thank you so much for joining us.
03:46Thank you so much.
03:48You
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