‘Gas Opec’ premature

Two of top European gas suppliers, Russia and Algeria, sought to calm fears among their consumers yesterday that they plan to set up an Opec-like group for the gas industry.

Last year Russian gas monopoly Gazprom, holder of the world’s largest gas reserves, upset the European Union by agreeing a cooperation deal with Algeria’s Sonatrach, raising fears that two of Europe’s top gas suppliers might fix prices.

But Algeria’s Energy and Mines Minister Chakib Khelil said after talks with his Russian counterpart Viktor Khristenko that such a project was premature.
“It is too early and too complicated to talk about the creation of a ‘gas Opec’, because the oil market is different from the gas market,” Khelil said.

“Possibly, in 20 or 30 years when swap and LNG markets are created, the market will become dynamic and maybe it’ll have the same features as the oil market.” Russian officials have repeatedly denied they have any plan to form a cartel, saying it is undesirable and impractical, while Gazprom says its long-term contracts make such a suggestion implausible.

Gulf Daily News