Gas OPEC Forum Should Boost Stability - Putin

July 10, 2013

Russian President Vladimir Putin said today that gas exporting countries should focus on decreasing price volatility and ensuring long term supply stability. Putin was commenting on the new "Gas Exporting Countries Forum".

Putin said that “The forum’s key task is to develop a consolidated position on pricing, create conditions for reducing excessive price volatility and increase the sector’s transparency, which should contribute to gas transport infrastructure development and more reliable deliveries.”

The Gas Exporting Countries Forum functions like a gas equivalent of the oil cartel OPEC. Founded in Tehran in 2001, it controls over 70% of the world's natural gas reserves and over 80% of liquefied natural gas production.

It currently comprises Algeria, Bolivia, Venezuela, Egypt, Iran, Qatar, Libya, Nigeria, Russia, Equatorial Guinea, Trinidad and Tobago, Oman and the United Arab Emirates.

He said that the importance of long term supply stability to gas exporting countries, and added that the global demand for natural gas already outstrips that for oil.

According to International Energy Agency figures, this market is expected to grow by more than 16% by 2018 to reach 4 trillion cubic meters each year.

Source: Steel Guru, 2013.