Iran, Qatar and Russia have agreed to form an OPEC-style organization for gas exporting countries, the Islamic Republic's oil minister said Tuesday after a trilateral meeting in Tehran.
The move would give Russia a greater say in international sales of natural gas and comes on the same day that OPEC Secretary General Abdalla Salem El-Badri arrived in Moscow to meet government officials.
Observers are watching those talks closely for signs of exactly what Russia wants from closer ties with the cartel, although there is no suggestion at this stage that Moscow is seeking full membership or would participate in an expected supply cut to be discussed Friday.
"The meetings went well and big decisions were made, and the groundwork was laid for the creation of a technical committee," Gholam Hossein Nozari said after Tuesday's meeting with Qatar's oil minister, Abdullah bin Hamad Al-Attiyah, and the head of Russian energy giant Gazprom, Alexei Miller.
The results of today's meeting will serve as a basis for cooperation so that other countries may join the association of gas exporting countries, Nozari said.
Gas producers such as Russia, Iran, Qatar and Venezuela have been talking for some time about a 'gas OPEC', mirroring the 13-member Organization of Petroleum Exporting Countries, which meet more than 40% of the world's crude oil demand.
Consumers in Europe and the U.S. are opposing producing nations' moves to create a gas cartel due to concerns over pricing fixing and security of supplies.
Miller told reporters after the meeting that the committee's activities would lead to ventures in exploration, refining and the sale of natural gas.
"Demand for gas worldwide is increasing and it is natural that we should increase our skills" in the development of gas fields, Miller said.
"We want to create a just market for both gas consumers and producers," he added.
Miller said the group's next meeting would be held in three to four months in Doha, followed by another meeting in Moscow.
"The next meeting will be held at the ministerial level," Miller said, adding that "Gazprom will have a fixed presence at upcoming meetings."
Miller said in a statement later that the three countries should meet every quarter.
Qatari oil minister Al-Attiyah said during the press conference that he was happy the world's three largest gas producers had gathered together, and expressed hope that the gas organization would be set up in the near future.
"God willing, in the upcoming meeting of ministers of these countries, we will confirm the establishment of the organization," he said.
Analysts have questioned the ability of gas exporters to influence prices since, unlike oil, it's tricky to switch natural gas supplies at short notice since most of it is transported through pipelines.
"But liquified natural gas is becoming a larger component on a global scale, which means local markets will get more integrated. In a decade this could have a material impact on the price of gas," said Ron Smith, head of research at Alfa Bank in Moscow.