World's Energy

MOSCOW, Nov 12, 2008 (Reuters by Dmitry Zhdannikov) - Russia, Iran and Qatar are expected to discuss a joint venture to produce and sell Iranian gas at a meeting of top officials and executives from the three countries in Doha on Wednesday. Russian gas monopoly Gazprom said in a statement on Wednesday the three could team up to develop Iran's South Pars, the world's biggest gas field, which is being developed in multiple phases by Iran and global energy majors. "At the meeting in Doha, Qatar, the participants will focus on exploration, production, processing and deliveries of natural gas, including LNG (liquefied natural gas)," the statement said without giving details. Russia, Iran and Qatar -- respectively ranked first, second and third in the world in terms of gas reserves -- agreed to boost coordination at a meeting in Tehran last month. After the meeting, Iran said there was consensus to set up a gas grouping similar to the Organization of the Petroleum Exporting Countries (OPEC), drawing criticism from the European Union which opposes any group that could act like a cartel. Russia referred to a "big gas troika", which should become a permanent body, holding regular meetings. Business daily Kommersant reported on Wednesday that Gazprom, Qatar Liquefied Gas Company Ltd and National Iranian Oil Company may agree to build a pipeline from South Pars to Qatar, where gas will be liquefied. The deal could pave the way for Iran to supply greater volumes of gas to world markets despite U.S. sanctions. But Jonathan Stern, director of gas research and Gazprom expert at Oxford Institute of Energy Studies, said it seemed unlikely Russia or Qatar would invest heavily in Iran. "I think its all purely political posturing and I will wait until I see any real agreements signed and any money invested before I'm likely to believe otherwise," he said. Kommersant said the three partners would hold 30 percent each in the venture and reserve a 10 percent stake for a trading partner or a top customer, such as China's CNPC or Korea's KOGAS. Analysts say a gas body would not be able to turn gas taps on and off as OPEC does with oil, but it could share insights on upstream contract terms when it deals with gas investors. Gas consumers like the United States and European states have opposed the formation of any gas body like OPEC, arguing that the market should set prices.