Identifier
Created
Classification
Origin
07DOHA385
2007-04-10 13:56:00
CONFIDENTIAL
Embassy Doha
Cable title:
GAS EXPORTING COUNTRIES FORUM: NO GAS CARTEL
how-tonull sdohasntsc 05/17/2007 07:46:25 AM From DB/Inbox: APR07 Archive Cable Text: C O N F I D E N T I A L DOHA 00385 SIPDIS CXDOHA: ACTION: P/E INFO: PAO RAO RSO DAO DCM FCS AMB DISSEMINATION: P/E /2 CHARGE: PROG APPROVED: DCM:MRATNEY DRAFTED: P/E:GSTRANDEMO,PYOTT CLEARED: NONE VZCZCDOI723 OO RUEHC RUEHHH DE RUEHDO #0385 1001356 ZNY CCCCC ZZH O 101356Z APR 07 FM AMEMBASSY DOHA TO RUEHC/SECSTATE WASHDC IMMEDIATE 6481 INFO RUEHHH/OPEC COLLECTIVE PRIORITY
C O N F I D E N T I A L DOHA 000385
SIPDIS
E.O. 12958: DECL: 04/09/2017
TAGS: EPET PGOV RU IR QA
SUBJECT: GAS EXPORTING COUNTRIES FORUM: NO GAS CARTEL
Derived from: DSCG 05-1, B,D.
C O N F I D E N T I A L DOHA 000385
SIPDIS
E.O. 12958: DECL: 04/09/2017
TAGS: EPET PGOV RU IR QA
SUBJECT: GAS EXPORTING COUNTRIES FORUM: NO GAS CARTEL
Derived from: DSCG 05-1, B,D.
1. (U) Summary. Ministers at the Gas Exporting Countries
Forum (GECF),representing the world,s top gas producers,
rejected the idea of forming an OPEC-style gas cartel. The
decision came after member countries, which together hold
more than 70 per cent of natural gas reserves, discussed a
proposal to set up a gas cartel along the lines of OPEC. GECF
officials did agree to form an "experts committee" to examine
issues related to the gas industry, but delegates said that
the formation of a gas cartel was, at best, years away. End
Summary.
--------------
No Gas Cartel; Expert Committed Formed
--------------
2. (U) The 6th ministerial session of the GECF was held in
Doha, Qatar, on April 9. GECF ministers, representing the
world,s top gas producers, rejected the idea of forming an
OPEC-style gas cartel, but did agree to form an "experts
committee" to examine issues related to the gas industry. In
the final communique of the GECF, the ministers agreed to
form a high level committee chaired by Russia, as host of the
next ministerial meeting, to assess and evaluate the
performance of the GECF. At the meeting, Qatar took over the
presidency of the GECF from Trinidad and Tobago, and Bolivia
joined the group. The next GECF meeting is scheduled for
Moscow in 2008.
3. (U) Energy Minister Abdullah bin Hamad al-Attiyah said
that the expert panel would review issues such as pricing,
marketing, infrastructure and problems affecting both
producers and consumers. Al-Attiyah noted that rising power
costs, a shortage of expert engineering companies, and the
lack of an adequate labor supply were some of the biggest
challenges facing the gas industry.
4. (C) Econoff discussed the gas cartel idea March 29 with
ExxonMobil's country director, Alex Dodds; Qatargas CEO,
Faisal al-Soweidi; and Qatargas Public Relations Manager
Abdulla Hajji. Dodds called the idea "absolute rubbish. With
gas contracts stretched out over 25 years I don,t know what
they think such an organization would accomplish. Oil is
different from gas." Al-Suwaidi agreed. Qatargas Public
Relations director Abdullah Hajji later said quietly, "We all
know that this talk of a gas cartel is simply an effort by
Venezuela, Iran and Russia to agitate Europe and the U.S.
Nothing will come of it and Qatar does not support it."
-------------- --------------
Algeria: Price of Gas does not Reflect Its True Value
-------------- --------------
5. (U) Algerian Energy Minister Chakib Khelil told the press
April 9 that the establishment of a gas cartel was not
technically viable for at least 10 to 15 years. Khelil noted
that a liquid gas market was necessary to have an OPEC-style
gas cartel, and that right now only a small part of the gas
market was liquid. Khelil did note that the most important
issues facing the gas industry was pricing, as "the price of
gas does not reflect its real value."
-------------- --------------
Venezuela and Iran Leading the Charge for Gas OPEC
-------------- --------------
6. (U) Local English-language press characterized Venezuela
and Iran as leading the charge for a gas OPEC, saying this
would further the interests of producers. Iranian Oil
Minister Kazem Vaziri Hemaneh said that, as it was with OPEC,
the process of forming a gas cartel would be a lengthy one,
but that having such an organization would be beneficial to
all sides. This position is in stark contrast to the warning
this year from officials at the International Energy Agency,
who said that a gas cartel would reduce demand and hurt
producers.
UNTERMEYER
SIPDIS
E.O. 12958: DECL: 04/09/2017
TAGS: EPET PGOV RU IR QA
SUBJECT: GAS EXPORTING COUNTRIES FORUM: NO GAS CARTEL
Derived from: DSCG 05-1, B,D.
1. (U) Summary. Ministers at the Gas Exporting Countries
Forum (GECF),representing the world,s top gas producers,
rejected the idea of forming an OPEC-style gas cartel. The
decision came after member countries, which together hold
more than 70 per cent of natural gas reserves, discussed a
proposal to set up a gas cartel along the lines of OPEC. GECF
officials did agree to form an "experts committee" to examine
issues related to the gas industry, but delegates said that
the formation of a gas cartel was, at best, years away. End
Summary.
--------------
No Gas Cartel; Expert Committed Formed
--------------
2. (U) The 6th ministerial session of the GECF was held in
Doha, Qatar, on April 9. GECF ministers, representing the
world,s top gas producers, rejected the idea of forming an
OPEC-style gas cartel, but did agree to form an "experts
committee" to examine issues related to the gas industry. In
the final communique of the GECF, the ministers agreed to
form a high level committee chaired by Russia, as host of the
next ministerial meeting, to assess and evaluate the
performance of the GECF. At the meeting, Qatar took over the
presidency of the GECF from Trinidad and Tobago, and Bolivia
joined the group. The next GECF meeting is scheduled for
Moscow in 2008.
3. (U) Energy Minister Abdullah bin Hamad al-Attiyah said
that the expert panel would review issues such as pricing,
marketing, infrastructure and problems affecting both
producers and consumers. Al-Attiyah noted that rising power
costs, a shortage of expert engineering companies, and the
lack of an adequate labor supply were some of the biggest
challenges facing the gas industry.
4. (C) Econoff discussed the gas cartel idea March 29 with
ExxonMobil's country director, Alex Dodds; Qatargas CEO,
Faisal al-Soweidi; and Qatargas Public Relations Manager
Abdulla Hajji. Dodds called the idea "absolute rubbish. With
gas contracts stretched out over 25 years I don,t know what
they think such an organization would accomplish. Oil is
different from gas." Al-Suwaidi agreed. Qatargas Public
Relations director Abdullah Hajji later said quietly, "We all
know that this talk of a gas cartel is simply an effort by
Venezuela, Iran and Russia to agitate Europe and the U.S.
Nothing will come of it and Qatar does not support it."
-------------- --------------
Algeria: Price of Gas does not Reflect Its True Value
-------------- --------------
5. (U) Algerian Energy Minister Chakib Khelil told the press
April 9 that the establishment of a gas cartel was not
technically viable for at least 10 to 15 years. Khelil noted
that a liquid gas market was necessary to have an OPEC-style
gas cartel, and that right now only a small part of the gas
market was liquid. Khelil did note that the most important
issues facing the gas industry was pricing, as "the price of
gas does not reflect its real value."
-------------- --------------
Venezuela and Iran Leading the Charge for Gas OPEC
-------------- --------------
6. (U) Local English-language press characterized Venezuela
and Iran as leading the charge for a gas OPEC, saying this
would further the interests of producers. Iranian Oil
Minister Kazem Vaziri Hemaneh said that, as it was with OPEC,
the process of forming a gas cartel would be a lengthy one,
but that having such an organization would be beneficial to
all sides. This position is in stark contrast to the warning
this year from officials at the International Energy Agency,
who said that a gas cartel would reduce demand and hurt
producers.
UNTERMEYER