US energy chief warns ministers over gas cartel

18 July 2007 20:20  [Source: ICIS news]

WASHINGTON (ICIS news)--US Energy Secretary Samuel Bodman said on Wednesday he has cautioned other energy ministers about a possible international natural gas cartel and that he remains concerned by the prospect.

 

Speaking at a press conference following a meeting of the National Petroleum Council (NPC), Bodman said that he has not learned much more about the intentions of the Gas Exporting Countries Forum (GECF) since the group decided in April this year to study the possibility of forming an OPEC-like cartel to control production and pricing of natural gas.

 

“I simply don’t know a lot more about it, other than they said they are going to study it, and I presume they are conducting that study,” Bodman said.

 

However, he added, “I have made my views known through various energy ministers around the world that we are not encouraging development of a cartel in natural gas”.  He did not specify which energy ministers he has contacted on the matter.

 

US chemicals producers are almost wholly dependent on natural gas as a feedstock, and chemical and other manufacturers expect they will have to rely on increasing imports of liquefied natural gas (LNG) to supplement domestic gas production.

 

Some in industry worry that a natgas cartel could affect both the availability and pricing of LNG imports, and Bodman has earlier expressed concern about the possibility of a natgas cartel.

 

The 16-nation GECF includes Russia, Qatar, Algeria, Indonesia, Nigeria, Iran and Venezuela, among others.  Relations between the US the latter two nations at times have been hostile over the last several years.

By: Joe Kamalick
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