26 April 2007 19:42 [Source: ICIS news]
Chris Conway, chairman of the Natural Gas Supply Association (NGSA), told a press conference that there is no need for concern about prospects for a natgas pricing cartel.
“The gas market is quite different from the oil market,”
Some among US chemicals manufacturers - who are wholly dependent on gas as a feedstock - are concerned about even the remote prospect of a natgas pricing cartel.
Conway, who also is president of the gas and power division of ConocoPhillips, termed talks amid some major gas producing countries about an OPEC-like cartel “very preliminary, and I don’t see this as being something to be too concerned about.”
He was referring to the meeting in
In that early April meeting, the GECF countries voted to establish an expert group to study and report on pricing, infrastructure and relations between producers and consumers. The report is due at the group’s seventh annual meeting next year.
Most observers believe a natgas pricing cartel would not work because gas production is more widely spread across the globe, gas markets are still largely regional rather than global and most gas trading is done under long-term contracts with only small volumes in spot trading.
NGSA represents major
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