Gas-Producing Nations Take First Step Toward OPEC-Style Group

Tuesday, April 10, 2007
The world's biggest gas producers agreed to set up a committee to look into pricing, in what could be the first step toward setting up an OPEC-style group to control supplies. Energy ministers from Russia, Iran and Qatar, holders of the world's biggest gas reserves, and envoys from 10 other nations, met today in Doha, the capital of Qatar, for the Gas Exporting Countries Forum. They agreed to set up a working committee that will examine the relationship between producers and consumers as well as pricing. Asked if this could pave the way to an eventual cartel similar to OPEC, Algerian Energy

The European Union, which relies on Russia for a quarter of its gas, has warned that a group modeled on the Organization of Petroleum Exporting Countries may spur consumers to switch to alternative sources of energy. Natural gas consumption worldwide will rise to 182 trillion cubic feet in 2030 from 95 trillion cubic feet in 2003, according to the U.S. Energy Information Administration. Russia, the world's biggest energy supplier, will chair the working group and host the next meeting of the gas forum, Energy Minister Viktor Khristenko said.

Qatar's oil minister earlier attempted to play down concerns over the future direction of the group.

Exxon Mobil Corp's plans for a gas-to-liquids export project in Qatar were scrapped because of high costs and domestic gas needs, the minister said in an interview on April 6. Exxon unexpectedly said Feb. 20 it had called off plans to build a multibillion-dollar facility with state-run Qatar Petroleum that would convert gas to diesel, citing high costs.

A natural gas cartel will only succeed when liquefied natural gas accounts for the majority of internationally traded gas, allowing producers to ship the fuel in tankers and sell it on the spot market, like oil, said Joseph Stanislaw, an energy adviser to Deloitte & Touche. Currently only about 23 percent of gas exports move on tankers. By comparison, about 60 percent of internationally traded oil is shipped on tankers, according to the International Energy Association. Most gas is currently shipped through pipelines, locking producers and consumers into long-term contracts on either end of the pipe. Source: Bloomberg

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Damen Outfitting First of Nine Bahamas Patrol Boats

The first of nine Damen Stan Patrol 3007s ordered by the Royal Bahamas Defense Force has arrived at Damen Shipyards Gorinchem in the Netherlands for outfitting.

Liquefaction Terminals to Dominate LNG Capital Expenditure

Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger

New Chinese Shipyard Launches First Ship

The new shipyard facility of Honghua Offshore Oil & Gas Equipment Company in Jiangsu, China, has launched its first ship, an IMT982 Platform Supply Vessel. The vessel,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pipelines Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1317 sec (8 req/sec)