Energy powers Iran, Russia and Qatar will hold talks on Wednesday in Doha on gas cooperation, Iranian gas officials said on Monday.
Russia, Iran and Qatar -- which are respectively ranked first, second and third in the world in terms of gas reserves -- agreed to boost coordination at a meeting in Tehran last month.
After the meeting, Iran said there was consensus to set up a gas grouping like the Organization of the Petroleum Exporting Countries (OPEC), drawing criticism from the European Union which opposes any group that could act like a cartel.
Russia referred to a "big gas troika", which should become a permanent body holding regular meetings.
"The second round of negotiations between Iran, Qatar and Russia on expanding cooperation between the three sides will start on Wednesday, Nov. 12 in Qatar's capital Doha," the National Iranian Gas Export Company (NIGEC) said in a statement on its website.
Gas officials told Reuters NIGEC managing director, Reza Kasaeizadeh, would head the Iranian team.
Kasaeizadeh told Reuters last month that creating a group of exporting countries would help harmonise pricing formulas and bring security to the growing market for the fuel.
Analysts say a gas body would not be able to turn gas taps on and off as OPEC does with oil, but it could share insights on upstream contract terms when it deals with gas investors.
Gas consumers like the United States and European states have opposed the formation of any gas body like OPEC, arguing that the market should set prices.
Posts tonen met het label gas. Alle posts tonen
Posts tonen met het label gas. Alle posts tonen
maandag 10 november 2008
maandag 27 oktober 2008
Opec for gas?
Russia, Iran and Qatar, the three nations accounting for over 60 percent of global natural gas reserves, have agreed to set up a gas cartel on the line of the Organisation of the Petroleum Exporting Countries (Opec).
The three largest gas exporters want prices up, given their recent dramatic decline after the summer peak. Unfortunately, they have no power to change that now, as gas prices are regulated by the oil and petrochemicals markets since there is no such thing as an independent gas market. The new gas alliance established in Iran's capital Oct 21 is in fact a "big gas troika."
The Opec-style gas cartel will be finalized Nov 18 in Moscow with adoption of the group's charter, a document which has been in the works for two years ever since Iran initiated the idea. In fact, gas producing nations have had a discussion platform since 2001, the Gas Exporting Countries Forum (GECF) comprising 16 member states. But it has no charter, its decisions are not binding on its members and it is no more than a talking club. Adopting a single charter has been the long-standing stumbling block for a "gas Opec."
Iran wants the gas cartel to be modelled after the original Opec, setting quotas for gas production thus pushing prices up while further damaging the US economy. Moscow, in turn, is trying to avoid aggressive policies suggesting that the new organization should manage joint gas projects and gas transportation issues.
The latter is especially important for Russia and its gas export monopoly, Gazprom, whose chief Alexei Miller represented Russia at the Tehran meeting. It is crucial for Russia that central Asian gas goes through Russia on the way to Europe rather than bypass it via the Caspian seabed or go through Iran. Alongside these geopolitical factors, there are other practical issues for the proposed cartel to grapple with. Gazprom's gas supplies to Europe have been contracted for the next one decade to three. Iran's gas industry is so disorganized that, despite its huge reserves, the country has to export Turkmen gas under some of its export projects.
Turkmenistan, for its part, has shown a rather cool attitude toward the proposed gas cartel. Qatar is a new player on the global gas market. Most of its projects are still in the works and involve liquefied natural gas (LNG) deliveries also to Europe, and that too, under long-term contracts. If it tries to limit those deliveries, its niche will be immediately seized by rivals - Libya, Algeria and others. It follows from the above that there is no global gas market. There is not a European gas market either. There are no "global" gas prices - they are set individually for each contract (usually a long-term). As a result, the proposed gas cartel cannot influence gas prices through restrictive quotas. By restricting exports, gas-producing countries would only harm themselves by cutting their own incomes. Gas prices in Europe are based on the market value of crude oil and petrochemicals, which gas producers do not control.
The despair of the three countries richest in the commodity is easy to understand. Oil prices have plummeted to half their summer peak, and natural gas followed suit. Miller and his counterparts are getting desperate because they cannot influence the process. However, the very idea of establishing some sort of gas cartel is bound to raise concerns with European consumers, further complicating Gazprom's investments in Europe, as if European partners were not already wary of dealing with the Russian monopoly. The Russian government must certainly realize that a "gas Opec" is a harmful idea. Energy Minister Sergei Shmatko said earlier this month that the wording was inappropriate because Russia has no intention of regulating gas prices or production levels.
The three largest gas exporters want prices up, given their recent dramatic decline after the summer peak. Unfortunately, they have no power to change that now, as gas prices are regulated by the oil and petrochemicals markets since there is no such thing as an independent gas market. The new gas alliance established in Iran's capital Oct 21 is in fact a "big gas troika."
The Opec-style gas cartel will be finalized Nov 18 in Moscow with adoption of the group's charter, a document which has been in the works for two years ever since Iran initiated the idea. In fact, gas producing nations have had a discussion platform since 2001, the Gas Exporting Countries Forum (GECF) comprising 16 member states. But it has no charter, its decisions are not binding on its members and it is no more than a talking club. Adopting a single charter has been the long-standing stumbling block for a "gas Opec."
Iran wants the gas cartel to be modelled after the original Opec, setting quotas for gas production thus pushing prices up while further damaging the US economy. Moscow, in turn, is trying to avoid aggressive policies suggesting that the new organization should manage joint gas projects and gas transportation issues.
The latter is especially important for Russia and its gas export monopoly, Gazprom, whose chief Alexei Miller represented Russia at the Tehran meeting. It is crucial for Russia that central Asian gas goes through Russia on the way to Europe rather than bypass it via the Caspian seabed or go through Iran. Alongside these geopolitical factors, there are other practical issues for the proposed cartel to grapple with. Gazprom's gas supplies to Europe have been contracted for the next one decade to three. Iran's gas industry is so disorganized that, despite its huge reserves, the country has to export Turkmen gas under some of its export projects.
Turkmenistan, for its part, has shown a rather cool attitude toward the proposed gas cartel. Qatar is a new player on the global gas market. Most of its projects are still in the works and involve liquefied natural gas (LNG) deliveries also to Europe, and that too, under long-term contracts. If it tries to limit those deliveries, its niche will be immediately seized by rivals - Libya, Algeria and others. It follows from the above that there is no global gas market. There is not a European gas market either. There are no "global" gas prices - they are set individually for each contract (usually a long-term). As a result, the proposed gas cartel cannot influence gas prices through restrictive quotas. By restricting exports, gas-producing countries would only harm themselves by cutting their own incomes. Gas prices in Europe are based on the market value of crude oil and petrochemicals, which gas producers do not control.
The despair of the three countries richest in the commodity is easy to understand. Oil prices have plummeted to half their summer peak, and natural gas followed suit. Miller and his counterparts are getting desperate because they cannot influence the process. However, the very idea of establishing some sort of gas cartel is bound to raise concerns with European consumers, further complicating Gazprom's investments in Europe, as if European partners were not already wary of dealing with the Russian monopoly. The Russian government must certainly realize that a "gas Opec" is a harmful idea. Energy Minister Sergei Shmatko said earlier this month that the wording was inappropriate because Russia has no intention of regulating gas prices or production levels.
donderdag 16 oktober 2008
Russian businessmen invade Alaska
Russian Gazprom's top managers have visited Alaska to look into projects in the US state, Gazprom said Tuesday.
The Russian gas giant could share its expertise in Alaska as climatic conditions at its traditional gas production regions in northern Russia are similar to those in Alaska, it said in a statement.A Gazprom delegation consisting of CEO Alexei Miller, his deputies Valery Golubev and Alexander Medvedev and others, met with representatives of Alaska's natural resources department, management of Arctic Slope Regional Corporation, which represents local business interests, and ConocoPhillips CEO Jim Mulva.
"Gazprom is ready to provide its abilities and experience. I think in the future we could conduct joint scientific research," Miller said in televised comments broadcast by Russian Vesti news channel from Anchorage, Alaska.Miller in June 2008 disclosed his company's interest in joining a planned project to build a gas pipeline from Alaska to the Lower 48 US states."Our interests are not limited to the European continent only...Gazprom has unique experience, knowledge and modern technology and is the leading company in transporting gas by pipeline.
That is why we are interested in such a large-scale project as construction of the gas pipeline from Alaska," he said in a speech at the St Petersburg International Economic Forum.
Mulva said at the time that ConocoPhillips would study Gazprom's proposal.
There are two rival planned pipeline projects in Alaska, one led by TransCanada and the other by two North Slope producers, BP and ConocoPhillips.
Miller said Tuesday timeframes for both projects envisage implementation by around 2018. Gazprom said in a statement that besides the two planned pipeline projects in Alaska there should be opportunities considered for the construction of an LNG plant in Alaska.
Gazprom also suggested that a complex plan for gas production, transportation and supply system in Alaska would be "rational" for the development of the state's hydrocarbons. Gazprom is leading a similar unified plan in Russia, for the development of East Siberian and Far Eastern gas fields.
The Russian gas giant could share its expertise in Alaska as climatic conditions at its traditional gas production regions in northern Russia are similar to those in Alaska, it said in a statement.A Gazprom delegation consisting of CEO Alexei Miller, his deputies Valery Golubev and Alexander Medvedev and others, met with representatives of Alaska's natural resources department, management of Arctic Slope Regional Corporation, which represents local business interests, and ConocoPhillips CEO Jim Mulva.
"Gazprom is ready to provide its abilities and experience. I think in the future we could conduct joint scientific research," Miller said in televised comments broadcast by Russian Vesti news channel from Anchorage, Alaska.Miller in June 2008 disclosed his company's interest in joining a planned project to build a gas pipeline from Alaska to the Lower 48 US states."Our interests are not limited to the European continent only...Gazprom has unique experience, knowledge and modern technology and is the leading company in transporting gas by pipeline.
That is why we are interested in such a large-scale project as construction of the gas pipeline from Alaska," he said in a speech at the St Petersburg International Economic Forum.
Mulva said at the time that ConocoPhillips would study Gazprom's proposal.
There are two rival planned pipeline projects in Alaska, one led by TransCanada and the other by two North Slope producers, BP and ConocoPhillips.
Miller said Tuesday timeframes for both projects envisage implementation by around 2018. Gazprom said in a statement that besides the two planned pipeline projects in Alaska there should be opportunities considered for the construction of an LNG plant in Alaska.
Gazprom also suggested that a complex plan for gas production, transportation and supply system in Alaska would be "rational" for the development of the state's hydrocarbons. Gazprom is leading a similar unified plan in Russia, for the development of East Siberian and Far Eastern gas fields.
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