Monday, April 21, 2008

NEWS: Energy: Russia floats gas OPEC idea

Rome, 21 April (AKI) - Russia on Monday proposed creating a group of gas-exporting countries along the lines of oil exporters' cartel OPEC.

The Russian proposal was circulated among delegates from gas producing countries attending the 11th International Energy Forum in Rome, Italy.

The document, believed to have been drafted by Russia's deputy energy minister, is said to read like the charter of a future gas OPEC.

It will be discussed later this month during a summit of the 15 gas producing countries taking place in the Iranian capital, Tehran, on 28 April.

Future gas pipelines and a joint pricing and production policy will be among the objectives of such a gas exporters' cartel.

Russia, the world's largest natural gas producer is counting on the support of Iran, which holds the world's second largest gas reserves. Not all gas producing countries are in favour of setting up a formal, OPEC-style cartel, however.

The United States and the European Union have repeatedly warned that creating a gas OPEC would pose a serious danger to global energy security and allow price manipulation.