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25 Aug, 2022 10:05

Russia and Iran move to create global gas cartel – media

The OPEC-style organization will allow control over prices for the fuel in the coming years, Oilprice reports
Russia and Iran move to create global gas cartel – media

Moscow and Tehran are taking serious steps toward forming an OPEC-style cartel for natural gas that would allow them to coordinate an ‘extraordinary’ proportion of reserves and control over prices, OilPrice reported on Tuesday.

“Occupying the number one and number two positions in the world’s largest gas reserves table, respectively – Russia with just under 48 trillion cubic meters (tcm) and Iran with nearly 34 tcm – the two countries are in an ideal position to do this,” the report stated.

It described the $40 billion memorandum of understanding (MoU) signed last month between Russia’s Gazprom and the National Iranian Oil Company (NIOC) as “a stepping stone to enabling Russia and Iran to implement their long-held plan to be the core participants in a global cartel for gas suppliers in the same mold as the Organization of the Petroleum Exporting Countries (OPEC) for oil suppliers.”

The chairman of Iran’s Oil, Gas, and Petrochemical Products Exporters’ Union, Hamid Hosseini, reportedly said after the MoU had been signed: “Now the Russians have come to the conclusion that the consumption of gas in the world will increase and the tendency towards consumption of LNG has increased and they alone are not able to meet the world’s demand, so there is no room left for gas competition [between Russia and Iran].”

According to OilPrice, major global LNG supplier Qatar – which has the third-largest gas reserves of just under 24 tcm – could be a prime candidate to join the Russia-Iran gas cartel.

Together, Russia, Iran and Qatar account for just under 60% of the world’s gas reserves, the report pointed out. The three countries were instrumental in the founding of the Gas Exporting Countries Forum (GECF), whose 11 members control over 71% of global gas reserves, 44% of its marketed production, 53% of its gas pipelines, and 57% of its LNG exports, it said.

For more stories on economy & finance visit RT's business section

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