World's Energy

21 October 2008 - Upstream OnLine - World gas powers Russia, Iran and Qatar pledged today to strengthen co-operation, as Tehran said there was a consensus to form an Opec-style gas grouping. Iran's Oil Minister Gholamhossein Nozari said he and Qatar's Energy Minister Abdullah al-Attiyah and Gazprom boss Alexei Miller agreed to establish a high-ranking natural gas committee. Unlike Nozari, Miller did not refer to a "gas Opec" at a joint news conference but said the three sides had set up a "major gas troika" that would help implement joint projects. Russia, Iran and Qatar are ranked the first, second and third biggest holders of natural gas reserves in the world and together boast more than half of the global total. "We have made major decisions," Nozari told Reuters after talks in the Iranian capital. "There is a demand to form this gas Opec and there is a consensus to set up gas Opec." Major gas exporters have met informally for several years at the annual Gas Exporting Countries Forum, a grouping including also Venezuela, Nigeria, Algeria, Egypt, Indonesia and Libya. Iran wants to turn it into a more formal organisation akin to Opec. Qatar's Attiyah said: "God willing, in the next meeting of the gas exporting countries, they will affirm the establishment of the organisation." Europe and the US have warned against such a gas export body, saying it could pose a danger to global energy security and create room for price manipulation. Russian gas giant Gazprom has previously played down the idea of a gas Opec, saying it was not feasible. But Miller told today's news conference: "We have decided to be in close contact and we can say that today a major gas troika was formed." Some analysts have said gas Opec could be expected to share insights on upstream contract terms with investors rather than act on restricting gas supply. "Surely this gathering of gas exporting countries is to give assurances over gas supply to the world," the news agency quoted Miller as saying. Nozari hailed today's talks as a "turning point" in expanding co-operation between Iran, Qatar and Russia and said senior officials from the three states would form the committee. Miller said the new body would "review projects and implement joint projects. This will range from exploration, refining and selling gas". It would hold its first meeting in Qatar's capital Doha in a few days time, he said.