Russia, Iran and Qatar announce cartel to control 60% of world’s gas supplies

Western concerns about global energy markets hit new heights last night when Russia, Iran and Qatar said they were forming an Opec-style gas cartel.

The move by the three countries, which control 60% of the world’s gas reserves, was met with immediate opposition from the European commission, which fears the group could drive up prices.

Alexey Miller, chairman of Russia’s Gazprom, said they were forming a “big gas troika” and warned that the era of cheap hydrocarbons had come to an end.
“We are united by the world’s largest gas reserves, common strategic interests and, which is of great importance, high cooperation potential in tripartite projects,” he explained. “We have agreed to hold regular – three to four times a year – meetings of the gas G3 to discuss the crucial issues of mutual interest.”

Miller’s comments, likely to increase pressure on the west to accelerate developments in wind and other renewable energy alternatives, followed a meeting in Tehran with Gholamhossein Nozari, Iran’s petroleum minister, and Abdullah bin Hamad al-Attiyah, Qatar’s deputy prime minister and oil and energy minister.

Miller said the group was establishing a technical committee comprised of specialists and experts to discuss the implementation of joint projects embracing the entire value chain from geological exploration to marketing.

The Russians avoided the word cartel but the Iranians spelled it out clearly. “There is a demand to form this gas Opec and there is a consensus to set up gas Opec,” Nozari told a news conference.

With Opec due to meet on Friday to look at ways of driving up oil prices, Miller said fossil fuels were going to cost more. “We share the opinion that oil price fluctuations don’t put in question the fundamental thesis stating that the era of cheap hydrocarbons has come to an end.”

Guardian