Russia hosts gas exporters summit

Ministers from the world's major gas-exporting countries have gathered in Moscow to discuss closer co-operation.

Countries represented include Iran and Libya, as well as Russia - all members of the Gas Exporting Countries Forum.

The gathering has led to suggestions that they want to set up an organisation similar to the oil producers' cartel, Opec.

It will be closely watched by consumer nations who fear such a move could push up energy prices.

Fears over energy security mean a formal organisation of gas exporting countries would be deeply unpopular in Europe and the US.

It is feared that such an organisation could hold a monopoly on world supply and set prices to suit its own needs.

The meeting also comes amid growing concern that a long-running row between Russia and Ukraine could disrupt supplies to Europe this winter.

'Protecting producers'

Russian Prime Minister Vladimir Putin will attend the forum, while President Dmitry Medvedev will host a dinner for delegates at the Kremlin.

Russian officials said delegates would agree on a charter that would make the GECF a more formal organisation headquartered in St Petersburg.

Issues including possible future cuts in gas production and the effect of lower oil prices are also likely to be on the agenda, says the BBC's James Rodgers, in Moscow.

There are concerns among gas-importing nations that the GECF could eventually set quotas for gas in the same way as Opec does for oil.

But industry analysts say technical differences between the oil and gas markets make that unlikely for now.

At the weekend, Russian Deputy Prime Minister Igor Sechin said the forum was "not about any collusion".

"We are talking about protecting the interests of (gas) producing countries, about co-ordinating their work," he said.

Ukraine row

At the moment Russia remains locked in a dispute with Ukraine over non-payment of debts.

The Russian gas company, Gazprom, says Ukraine owes it $2bn (£1.4bn) and has warned it may cut off gas supplies next month if the dispute remains unresolved.

Russia supplies about a quarter of Europe's gas needs, and about 80% of Russian gas exports to Europe flow through Ukraine.

On Monday, Gazprom said it had warned European customers about possible disruption linked to the Ukraine dispute.

"It is not ruled out that the current position of the Ukrainian side and some of its actions could lead to disruptions in the stability of gas supplies to Europe," Gazprom Chairman and First Deputy Prime Minister Viktor Zubkov said in a statement.

A similar dispute three years ago saw Russia briefly cutting gas deliveries to its neighbour, action that also affected supplies to several western European countries.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/europe/7796806.stm

Published: 2008/12/23 09:19:42 GMT