Iran official hopes gas group to match OPEC
The Gas Exporting Countries Forum (GECF) has been seen a talking shop that cannot emulate the power of the Organization of the Petroleum Exporting Countries.
December 1, 2010 2:18 by Reuters
Iran’s OPEC governor Mohammad Ali Khatibi hopes the influence of a group of gas exporting nations will rise over the next 10 years to match that of OPEC, according to an interview published in Hamshahri daily.
The Gas Exporting Countries Forum (GECF), which is due to meet on Thursday in Doha, has been seen a talking shop that cannot emulate the power of the Organization of the Petroleum Exporting Countries.
But Khatibi said he hoped that would change in a few years.
“We should see how the (Gas Exporting Countries Forum) can start influencing the gas market. When OPEC was formed it took more than 10 years for it to be influential in the oil market,” he said.
“I see the success of the forum in being influential in thein a shorter time than it took for OPEC to become influential in the oil market and another factor (for judging its success is that) it can manage the gas market and maximise the interests of member states,” he said.
He also said he saw a glut in gas supply ending over the next five to 10 years and the gas price rising. “Considering the growth of gas consumption in the world and its advantages I think in future the gas price should be around the same as the oil price.”
“Unfortunately right now in the gas market there is negative competition between producers, I think that in the next five to 10 years this gas surplus will end.”
“If the gas surplus and the negative competition among producers ends there is no reason that the gas price is less than the oil price, it could even be more than the oil price.”
(Reporting by Ramin Mostafavi; Writing by Robin Pomeroy)