Thursday, 24 May 2012

DOHA: The gas exporting countries would set up a Joint Organizations Data Initiative (JODI) for gas sector  in line with JODI- Oil. The establishment of world gas data mechanism would bring in better transparency in the pricing system,  Aldo Flores-Quiroga, Secretary General, International Energy Forum (IEF) said  on the concluding day of the 2nd Gas Data Transparency Conference here yesterday.

The implementation of a JODI-Gas database takes a further step towards increased transparency in gas markets, and contributes to the reduction of uncertainties. The database would improve predictability and facilitate project planning. Improvement in the quality of information and data that are freely available would increase the market transparency. 

Aldo said the data, available in public domain, would cover the five key categories- supply, demand, storage, import and export of natural gas.

A total of 52 countries are presently participating in the gas data collection exercise, and they account for up to 66 percent of the global natural gas supply and 72 percent of the world's natural gas demand. The UN has voluntarily offered its expertise to coordinate the JODI- Gas.

The existing data system is quite diverse. We want to consolidate, integrate and standardise it. JODI Gas could harmonise the diverse data in a better way to help the market forces. The Doha meet reflected strong interests of the stakeholders in establishing the JODI Gas. The participants wanted to create a really credible data base, he said.

"The JODI- Gas would promote transparency and will help better decision in investment and    offer better energy services for everyone. It would be true reflection of w hat is going on in the market and foster market stability".

The increasing globalisation of the gas market is resulting from more global LNG and increase price volatility underpinning the growing need for more market information on natural gas. Improving transparency in the gas market will contribute to the reduction of uncertainties, improve predictability, facilitate project planning and satisfy demands for better information from market participants worldwide.

Hedge Fund market would be one of the key markets that would be benefitting from the JODI- Gas. Once the consolidated data is in place, the investors, companies and the governments would have sound analytical foundations upon which to build a better understanding of expectations for the future business environment. Strategic planners, supported by analysis of market fundamentals, play a crucial role in this activity. Natural gas industry analysts worldwide are faced with an exceptionally difficult task as monthly or quarterly data are in short supply. Apec, Eurostat, IEA, OLADE, Opec and UNSD are the JODI partner organizations

© The Peninsula 2012