Russia-led gas forum may one day emulate OPEC

MOSCOW – The Russia-led group of gas powers controlling nearly 70 per cent of proven world reserves could eventually become the gas industry’s answer to OPEC when it matures, the organisation’s first leader said on Tuesday.

The 11-member Gas Exporting Countries Forum (GECF) would also consider inviting new members to swell its ranks, including Canada, Australia and the Netherlands, Russian officials said.Leonid Bokhanovsky, the Russian official elected this month as the GECF’s inaugural secretary-general, stopped short of proposing managed production cuts to tackle a global gas supply glut. But he did not rule out ‘co-ordinated’ action in future.’Transforming the organisation into a gas cartel is not yet on the agenda,’ Bokhanovsky told a news briefing.’When the leading players listen to our recommendations, it will be possible to talk about co-ordinated activities. We’re still very young yet.’Russia, by far the world’s biggest exporter, and other GECF members are facing the first global drop in gas demand in 2009. Most industry observers expect the market to be oversupplied for the next few years, largely due to a surge in US production.Analysts say the GECF, with Moscow at its helm, is betting on the Kremlin’s power to steer it through potentially difficult times. Russia exports over four times more gas each year than Algeria, the next biggest supplier within the GECF grouping. The group does not co-ordinate output or make policy decisions on supply, but some Western consumers are concerned it may begin to do so. Iran, though still a net importer of gas, has been a vociferous backer of the group.’We don’t make any analogies between the forum and OPEC at present,’ Bokhanovsky said.Russian officials said Western exporters could also potentially join a group that also includes Bolivia, Equatorial Guinea, Egypt, Libya, Nigeria, Trinidad and Tobago, Venezuela and host country Qatar.Bokhanovsky, the 51-year-old first vice-president of Russian energy engineering and construction group Stroytransgaz, said Canada and Australia could also join the GECF in future.’Dialogue will grow in relation to Canada, Australia,’ he said. Canada ranks second among the world’s gas exporters and Australia 12th, US Energy Information Administration data based on 2008 natural gas exports shows.’The Netherlands has expressed its desire to participate,’ Russian Energy Minister Sergei Shmatko told the same briefing.Bokhanovsky, when elected on Dec. 9, said the GECF would co-ordinate efforts by governments, big gas companies and international organisations to develop the gas market through research, technology sharing, output monitoring and promotion of the fuel’s use. – Nampa-Reuters

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