abce certificate
middle east
Tuesday, 02 December, 2008, 22:10 GMT | more >>

Khamenei talks of gas cartel with Russia



By Upstream staff 

Iran and Russia could start up a gas exporting group like Opec based on their command of the world's largest natural gas reserves, Iranian Supreme Leader Ayatollah Ali Khamenei has been quoted as saying.

Forming a grouping of producers to control gas prices has been mooted in the past but officials in gas producers, including Russia, have tended to play down its prospects, partly because the gas market is dominated by long-term contracts.

"Iran and Russia can establish the structure for an organisation of gas co-operation like Opec as half of the world's gas reserves are in Russia and Iran," Khamenei was quoted by state television as saying.

He was commenting during talks on Sunday in Tehran with Russian Security Council Secretary Igor Ivanov.

Iran's gas reserves are estimated at 940 trillion cubic feet or more and Russia is estimated to hold between 1680 trillion to 2360 trillion cubic feet.

World reserves are estimated by industry experts at between 6100 trillion and 7000 trillion cubic feet.

The European Union, which relies on Russia for about a quarter its gas imports, last week expressed concern that Russia and Algeria, another major supplier of gas to the EU, may create a gas cartel that could hurt EU consumers.

EU Energy Commissioner Andris Piebalgs called on the two countries to clarify their co-operation plans.

Russian officials have repeatedly denied they have any plan to form a cartel, saying it is undesirable and impractical, while Russian gas monopoly Gazprom said its long-term contracts make such a suggestion implausible.

Despite its large gas reserves, Iran has been slow to develop exports, partly because US sanctions hinder Tehran's access to the most commonly used technology for making liquefied natural gas, Reuters reported.


Monday, 29 January, 2007, 14:15 GMT  | last updated: Monday, 29 January, 2007, 14:15 GMT

e-mail this article to a colleague


to email:  from:
comments: