As a preliminary step to set up a “Gas Opec” out of the Gas Exporting Countries Forum, Russia is planning to create an organisation on the similar pattern within the Commonwealth of Independent States (CIS). With an aim to form a world “Gas Opec”, Russia will present a charter for the International Association of National Non-governmental Gas Organization (IANGGO) during the meeting of the commission of the Eurasian Economic Community in St Petersburg in early April. Although Russia has not yet officially approved the “Gas Opec” idea, which was originally proposed by Iran, the move is expected to strengthen its position within the future gas cartel. Vice-President of the Russian Gas Society Oleg Zhilin said the gas cartel would be based in Russia, since it has the largest natural gas reserves and most extensive transport network. The organisation will be governed by a Moscow-based secretariat headed by a general secretary appointed to a three-year term, Zhilin said.The purpose of the new organisation, as described in the charter, is “the creation of conditions for the fair distribution of income from gas exports among producing and transporting countries and the formation of common investment sources for the development of the natural gas sector, including maintenance of the existing system of gas trunk lines in the IANGGO member-states” and “development of recommendations for harmonisation of the legislation of IANGGO member-states in the areas of exploration, production, processing, transportation, etc”. The organisation can be founded with two or three member-states. Former Soviet republics of Kazakhstan and Tajikistan have agreed to discuss the charter and Belarus is examining it.Leading Russian business daily Kommersant reported that members of the Gas Exporting Countries Forum plan to set up an international organisation on its basis, around the same principles as Opec. The charter of the new structure might be submitted at the Forum’s seventh meeting in Moscow in June. However, experts said they did not believe that a “Gas Opec”will quickly become as influential as its oil counterpart, with opposition from the US and the EU”. The main question being discussed now is how to change an informal club with no central coordinating into a serious international organisation of natural gas suppliers.
