Iran Sees Consensus for "Natural Gas OPEC"

Iran's oil minister said on Tuesday there was a consensus to set up a "gas OPEC," after talks with his Qatari counterpart and the head of Russia's Gazprom.

"We have made major decisions," Iran Oil Minister Gholamhossein Nozari told a news conference, saying the three sides would form a committee of senior officials. "There is a demand to form this gas OPEC and there is a consensus to set up gas OPEC," he said.

Europe and the United States have warned against such a grouping, saying it could pose a danger to global energy security and create room for price manipulation.

Gazprom Chief Executive Alexei Miller told the same news conference: "We have decided to be in close contact and we can say that today a major gas troika was formed." Russia, Iran and Qatar are ranked the first, second and third biggest holders of natural gas reserves in the world.

"Surely this gathering of gas exporting countries is to give assurances over gas supply to the world," Miller said.

Some analysts say any gas OPEC could be expected to share insights on upstream contract terms with investments rather than act on restricting gas supply as the oil cartel OPEC does.

Major gas exporters have met informally for several years at the annual Gas Exporting Countries Forum.

Iran wants to turn the forum into a more formal organisation akin to OPEC, the 13-member grouping which makes output decisions that can sway the global oil price.

"This conference is a turning point to expand cooperation between Iran, Qatar and Russia," Nozari said. "A committee will be formed from senior officials from the three countries."

Miller said the committee would "review projects and implement joint projects. This will range from exploration, refining and selling gas." He said gas officials from the three countries would meet in Moscow, Tehran, Doha.

Qatar Energy Minister Abdullah al-Attiyah said: "God willing, in the next meeting of the gas exporting countries, they will affirm the establishment of the organisation." Russia, the world's largest gas exporter, has hinted at its interest in the creation of an OPEC-style gas group, working with Iran, Qatar, Venezuela, Nigeria, Algeria, Egypt, Indonesia and Libya.

Russia's former president and current prime minister, Vladimir Putin, has said the "gas OPEC" idea is interesting, but requires deep analysis.

Copyright 2008 Reuters. Click for restrictions.