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Gas producers 'to discuss cartel' Gas producers dismiss cartel talk
(about 2 hours later)
Ministers from major gas exporting countries are meeting in Doha, Qatar, amid speculation that they may be planning to set up a cartel. Ministers from major gas exporting countries have said they will form a committee to examine prices.
The informal grouping, called the Gas Exporting Countries Forum, includes Russia, Iran and Kazakhstan. However, meeting in the Qatari capital Doha, the informal grouping, called the Gas Exporting Countries Forum, said it had no plans to set up a cartel.
Some of its leaders have expressed interest in forming a cartel similar to Opec to control production and price. Russia, will head the committee with other members also including Iran and Kazakhstan, Algeria and Qatar.
Gas accounts for about 20% of the fuel used globally for heating, cooking and generating electricity.Gas accounts for about 20% of the fuel used globally for heating, cooking and generating electricity.
Played down
The forum is a relatively informal grouping with a variable membership but it accounts for something like 70% of known reserves.The forum is a relatively informal grouping with a variable membership but it accounts for something like 70% of known reserves.
'We are not a cartel' Some of its leaders had expressed interest in forming a cartel similar to Opec to control production and price.
Qatar's Minister of Petroleum denied that the group was planning to set up a cartel. But the Russian energy minister Viktor Khristenko said he felt that the forum should remain unchanged.
"I hate the name cartel - we are not a cartel, we're just here to consider our interests," he told reporters in Doha. "It should continue existing as such and should keep up its transparent and coordinated position towards consuming countries," the minister said.
Kate Dourian from the energy information group Platts expects the outcome will be something less formal than a cartel. He added that the forum would launch a joint study to examine prices, with Russia, the world's largest gas supplier, organising the process.
She predicts, "A kind of permanent secretariat to look at relations between the gas producers themselves and exchange technology - an attempt to create a more unified market". Mr Khristenko had earlier played down talk that the group was looking to set up a cartel similar to Opec.
Scepticism
Venezuela and Iran have led calls for such a scheme, saying this would be in the best interests of producers.
"Having such an organisation for the gas exporting countries is beneficial to all sides," Iranian Oil Minister Kazem Vaziri Hamaneh said, but added the process would be a lengthy one.
Mr Hamaneh dismissed opposition from the US and other Western nations.
Many analysts are sceptical about whether a gas cartel could work.Many analysts are sceptical about whether a gas cartel could work.
Most gas trade is through regional pipelines so there is not the same kind of global market that a cartel could seek to control as there is for oil.Most gas trade is through regional pipelines so there is not the same kind of global market that a cartel could seek to control as there is for oil.
Gas contracts also tend to be long-term, covering periods as long as 30 years, which makes it difficult to cut production to raise prices.Gas contracts also tend to be long-term, covering periods as long as 30 years, which makes it difficult to cut production to raise prices.