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UPDATE 1-Gas exporters plan Nov Moscow meet to discuss group

Fri Aug 8, 2008 9:19am EDT

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(Adds details, quotes, background)

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By Vladimir Soldatkin

MOSCOW, Aug 8 (Reuters) - The world's top gas exporting nations will send ministers to a high-level forum in Moscow on Nov. 17 to discuss the possible creation of a gas charter, a source in Russia's Energy Ministry told Reuters on Friday.

"The main issue of the forum is to steadily turn it (the forum) into an organisation," the source said on condition of anonymity.

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, who will meet at the 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.

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.

While the Energy Ministry source said a gas charter was in the works, he dismissed an OPEC-style grouping.

"We're not talking about a cartel. This is not part of the picture," he said.

Experts have said a "gas OPEC" could be a reality, with the forming of a charter being the first step, but would have to wait at least 10 years before coming to market, once the gas market changes its management and supply structure, and when gas becomes commoditised.

Russia's former president and current prime minister, Vladimir Putin, has said the "gas OPEC" idea is interesting, but requires deep analysis. Russian gas export monopoly Gazprom (GAZP.MM) has repeatedly played down the idea, saying it is not feasible.

In early June, Russia hosted a working group from the major gas exporting nations, a meeting largely seen as a talking shop. (Writing by Amie Ferris-Rotman)



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