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Russia rules out OPEC-like gas deal to be inked in Qatar
POSTED: 9:27 a.m. EDT, April 10,2007

Russia has ruled out any agreement on forging a "gas OPEC" to be inked in the sixth Gas Exporting Countries Forum (GECF), which starts in Doha, Qatar, on Monday, Russia's Industry and Energy Minister Viktor Khristenko said.

"No cartel agreement on gas price policy will be signed at the forum," the Itar-Tass news agency quoted Khristenko as saying, who leads the Russian delegation to attend the forum.

However, the establishment of a natural gas cartel, equivalent of oil producers' OPEC, will possibly be high on the forum's agenda, he added.

The forum members may "initiate some documents (on the gas cartel) for further analysis and consideration," Khristenko said before his departure. He also predicted last week that it is highly unlikely a gas organization like OPEC can be created within the next 10 to 15 years.

The Russian delegation plans to put forward four initiatives in Doha, said the minister, adding that he also suggests to enhance the role of the forum and to set up a coordination department to improve its efficiency.

Deputy Speaker Vladimir Pekhtin of the State Duma, lower house of the parliament, also rejected that such an agreement would be signed in the meeting.

"Our main task is to unconditionally and reliably supply key fuel consumers, not set up an alternative gas OPEC," the Interfax news agency quoted him as saying on Monday.

Earlier, there were media reports and speculations that the world's largest producers of natural gas, in particular Russia and Iran, plan to create a gas cartel like OPEC, which will set quotas and prices, and are due to discuss the issue at the Doha meeting.

Major gas consumers in the world, namely, the United States and the European Union, have voiced opposition toward a "gas OPEC".

As an organization of world's leading gas producers established in Iran in 2001, the GECF doesn't have a fixed membership structure. However, the identified members include Algeria, Bolivia, Brunei, Egypt, Equatorial Guinea, Indonesia, Iran, Libya, Malaysia, Nigeria, Oman, Qatar, Russia, Trinidad & Tobago, the UAE and Venezuela.

Turkmenistan, Bolivia, Indonesia, Libya and Oman have also participated at different GECF ministerial meetings. Norway has an observer status.

Russia, Iran, Qatar, Algeria and 10 other countries at the forum control some 42 percent of world gas productions.

Russia is now the world's biggest trader in natural gas. Gas extraction in Russia may increase to 740 billion cubic meters and exports to 290 billion cubic meters by 2015.

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