Gas Exporting Countries Forum

The Gas Exporting Countries Forum (GECF) is an organization of world's leading gas producers, which was established in Tehran in 2001. The aims of the GECF are:
* to foster the concept of mutuality of interests by favouring dialogue between producers, between producers and consumers and between governments and energy-related industries;
* to provide a platform to promote study and exchange of views;
* to promote a stable and transparent energy market.

The GECF has not yet an official statute or charter, but there are hints that a charter is in the making. [ [http://www.presstv.ir/detail.aspx?id=64715&sectionid=351020602 'OPEC gas' still under review] , July 25, 2008]

Membership

The forum doesn't have fixed membership structure, however Algeria, Bolivia, Brunei, Egypt, Equatorial Guinea, Indonesia, Iran, Malaysia, Nigeria, Qatar, Russia, Trinidad & Tobago, the UAE and Venezuela could be identified as current members. Turkmenistan, Bolivia, Indonesia, Libya and Oman have participated at different ministerial meetings. Norway has status of observer.

Ministerial meetings

GECF has had 6 Ministerial meetings

The 6th Ministerial Meeting was scheduled to take a place in 2006 in Caracas, Venezuela, but was later postponed and changed to be met in Doha. The meeting was held on 9 April 2007. The 7th Ministerial Meeting will take a place in Moscow in 2008.

Gas OPEC

Since the establishment of the GECF in 2001, there has always been speculation, particularly in Europe, that the world's largest producers of natural gas, in particular Russia and Iran, intend to create a gas cartel equivalent to OPEC which would set quotas and prices. The idea of a gas OPEC was first floated by Russian President Vladimir Putin and backed by Kazakh President Nursultan Nazarbaev in 2002. In May 2006 Gazprom deputy chairman Alexander Medvedev threatened that Russia would create "an alliance of gas suppliers that will be more influential than OPEC" if Russia did not get its way in energy negotiations with Europe. [http://www.rferl.org/featuresarticle/2006/08/fe02cc18-3382-464f-b2bc-58a140e035ef.html Russia: Algeria Deal Revives Talk Of Gas Cartel] , by Roman Kupchinsky, RFE/RL, 14 August 2006] Iranian officials have explicitly expressed strong support for a gas cartel and held official talks with Russia. [ [http://money.cnn.com/2007/02/02/news/international/natural_gas/index.htm? Russia, Iran in talks to create natural gas organization] , February 2, 2007 EST] [ [http://users1.wsj.com/lmda/do/checkLogin?mg=wsj-users1&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB117037819504695589.html%3Fmod%3Dhome_whats_news_us Russia and Iran Discuss A Cartel For Natural Gas] , February 2, 2007]

Cartel speculation was again raised when the ministers met on April 9th, 2007. [cite web | url = http://news.bbc.co.uk/2/hi/middle_east/6538127.stm | title = Gas producers 'to discuss cartel' | publisher = BBC | date = 9 April 2007 | accessdate = 2007-04-10] The 6th Ministerial Meeting of the GECF established an expert group, chaired by Russia, to study how to strengthen the GECF. The group will look at factors including pricing, infrastructure, and the relationship between producers and consumers. According to the Algerian Energy and Mines Minister Chakib Khelil, this mean that in the long term the GECF will move toward becoming a gas OPEC.cite web | url = http://www.reuters.com/article/businessNews/idUSL0920522920070409 | title = Gas club seeks more clout, but not yet an OPEC, by Barbara Lewis and Simon Webb | publisher = Reuters | date = 9 April 2007 | accessdate = 2007-04-09]

However, given the insecurity of European gas supplies from Russia, Putin has no option but to downplay the prospect of such a cartel at this time. The formation of a Gas OPEC is problematic for three reasons. First, gas is far more widely distributed than oil. Second, the spot market for gas is non existent as liquefied gas cannot be stored cost-effectively. Third, gas producers do not have surplus capacity which can be tapped on demand (as opposed to the situation in the world oil market where OPEC countries such as Saudi Arabia can act as a buffer to stabilize or otherwise influence prices).Fact|date=February 2007 The overwhelmingly large percentage of gas is supplied via pipelines which physically lock in consumer and producer.

ee also

*Energy superpower
*Energy security

External links

* [http://www.oxfordenergy.org/pdfs/NG13.pdf The Gas Exporting Countries Forum: Is it really a Gas OPEC in the Making?] , by Hadi Hallouche, Oxford Institute for Energy Studies June 2006 ISBN 978-1-901795-50-9
* [http://www.energy.gov.tt/applicationloader.asp?app=newsarticles&cmd=view&articleid=165 Communique from 5th Gas Exporting Countries Forum (GECF)] 5th Ministerial Meeting, Port of Spain, Trinidad and Tobago, April 26th, 2005

References and notes