World gas powers Russia, Iran and Qatar
pledged (Oct. 21) to strengthen cooperation and Tehran said there was a
consensus to form an OPEC-style grouping, comments likely to worry Western
consumer nations.
Iran’s Oil Minister Gholamhossein Nozari
said he and Qatar’s Energy Minister Abdullah al-Attiyah and Chief Executive
Alexei Miller of Russian gas export monopoly Gazprom agreed to establish a
high-ranking natural gas committee.
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Europe and the United States have
warned against such a gas export body, saying it could pose a danger to
global energy security and create room for price manipulation. |
Miller at a joint news conference said
the three sides had set up a “major gas troika” that would help implement
joint projects.
Russia, Iran and Qatar are ranked the
first, second and third biggest holders of natural gas reserves in the world
and together boast more than half of the global total.
“We have made major decisions,” Nozari
said after talks in the Iranian capital. “There is a demand to form this gas
OPEC and there is a consensus to set up gas OPEC.”
Nozari and al-Attiya confirmed that the
three parties agreed to prepare the organization’s constitution to be
discussed at the next meeting of the Gas Exporting Countries Forum (GECF), due
to be held in Moscow on November 17.
Major gas exporters have met informally
for several years at the annual Gas Exporting Countries Forum. The GECF, which
was established in Tehran in 2001, has neither an official charter nor a fixed
membership structure. The countries which take part in its meetings include
Algeria, Bolivia, Brunei, Egypt, Equatorial Guinea, Indonesia, Iran, Malaysia,
Nigeria, Qatar, Russia, Trinidad & Tobago, the UAE and Venezuela. Norway has
observer status.
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Nozari hailed the talks as a
“turning point” in expanding cooperation between Iran, Qatar and Russia
and said senior officials from the three states would form the
committee. |
“Surely this gathering of gas exporting
countries is to give assurances over gas supply to the world,” said Miller.
“We have agreed to create a technical committee, and one of its missions will
be to review projects that can be implemented in a trilateral way,’’ he said,
adding that the committee would hold its first meeting in Qatar’s capital Doha
in a few days time.
Iran wants to turn it into a more formal
organization akin to the Organization of the Petroleum Exporting Countries,
the 13-member grouping which makes output decisions that can sway the oil
price.
Qatar’s Attiyah said: “God willing, in
the next meeting of the gas exporting countries, they will affirm the
establishment of the organization.”
Europe and the United States have warned
against such a gas export body, saying it could pose a danger to global energy
security and create room for price manipulation.
Miller said: “We have decided to be in
close contact and we can say that today a major gas troika was formed.”
Some analysts say any gas OPEC could be
expected to share insights on upstream contract terms with investors rather
than act on restricting gas supply as the oil OPEC does.
“Surely this gathering of gas exporting
countries is to give assurances over gas supply to the world,” said Miller,
whose country is the world’s largest natural gas exporter.
Iran is still a relatively small
exporter, with U.S sanctions over Tehran’s nuclear activities slowing
development of its gas sector. Major European companies have shelved or
scrapped multi-billion-dollar projects in the Islamic Republic.
Russia has been a reluctant backer of
U.N. sanctions imposed on Iran over its nuclear program, which Tehran says is
to generate electricity.
Nozari hailed the talks as a “turning
point” in expanding cooperation between Iran, Qatar and Russia and said senior
officials from the three states would form the committee.
Miller said the new body would “review
projects and implement joint projects. This will range from exploration,
refining and selling gas.”
The Tehran meeting supported the
initiative for creating an international Club of Experts and Journalists
specializing in the energy sector. The aim is to facilitate the receipt by the
most recognized specialists of first-hand information concerning the urgent
issues of the oil and gas sector. At the forthcoming meeting of the Gas
Exporting Countries Forum in Moscow other Forum participants will be offered
to join the establishment of this Club, which is planned to be named the
“Energy Pole.”
The parties also touched upon issues on
the current condition of the hydrocarbon market. As Alexey Miller underscored,
“We share the opinion that oil price fluctuations don’t question the
fundamental thesis that the era of cheap hydrocarbons has come to an end, and
the parties will proceed from this standpoint in their work.”
Meantime, the Russian Foreign Minister,
Sergei Lavrov, has also defended the formation of an organization of
gas-exporting countries similar to OPEC. Lavrov told journalists one day after
the Tehran meeting that expansion of natural gas cooperation between Doha,
Moscow and Tehran was a ‘healthy phenomenon’. He added that the current
fluctuations in oil prices were a negative factor which would affect gas
prices as well.
Such an alliance would have little
direct impact on the United States, which imports virtually no natural gas
from Russia or the other nations. But Washington and Western allies worry that
closer strategic ties between Russia and Iran could hinder efforts to isolate
Tehran over its nuclear ambitions. In addition, the United States opposes a
proposed Iranian gas pipeline to Pakistan and India, key allies.
In Europe — which counts on Russia for
nearly half of its natural gas imports — any cartel controlled by Moscow poses
a threat to supply and pricing.
Russia, which most recently came into
confrontation with the West over its five-day war with Georgia in August, has
been accused of using its hold on energy supplies to bully its neighbors,
particularly Ukraine.
Moscow cut natural gas exports to the
former Soviet republic over a price dispute during the dead of winter in 2006
— a cutoff that caused disruptions to European nations further down the
pipeline.
The 27-nation European Union expressed
strong opposition to any natural gas cartel, with an EU spokesman, Ferran
Tarradellas Espuny, saying: “The European Commission feels that energy
supplies have to be sold in a free market.”
The gathering in Tehran appeared to be
the most significant step toward the formation of such a group since Iran’s
supreme leader, Ayatollah Ali Khamenei, first raised the idea in January 2007.