President Vladimir Putin : Gas coalition is interesting

President Vladimir Putin

Gas coalition is interesting

El Khabar, 6 février 2007

European countries’s fear is growing eager as gas coalition project comes true especially after Russian President Viadimir Putin’s last statements. During annual press conference held last week in presidential palace in Moscow, Vladimir Putin widely estimated the idea of organising a coalition for gas producing and exporting countries.
Russian president spoke for the first time without naming project concerned countries, on great opportunities available to set up “gas Opec” similar to oil Opec. Putin declared before journalists “the idea is worth interest and we are devoted to make it concrete “rectifying Moscow isn’t willing to organise the coalition of gas producing countries in order to cause damage to consuming countries’ interests, it rather works to avoid more troubles in the relations with its neighbours in Europe, the most important market of Russian gas.
Russian president’s statements come after Algerian Energy Minister Chakib Khelil set aside possibility of setting gas organisation. Gazprom officials had also denied any cartel project though Algeria-Russian coordination do exist through a gas forum that comprehend a number of gas producers. In addition to Russian statements, Iran suggested last week the creation of gas organisation similar to OPEC.
>From his part, Putin says “we agree with Iranian experts and other hydrocarbons producing and exporting countries; we are trying together to cooperate in international markets, and coordinate our activities to assure enough energy supply to our clients, in consuming countries. Russia owns 30% of world reserves and 20% of gas production whereas Iran comes in the second position as concern world gas reserves.
Algeria provides 20% of European Union needs against 40% for Russia. Both Algiers and Moscow raised concern among European countries after having signed a memorandum of understanding, in August 2006.The second gas protocol agreement between the two countries was concluded last January 21st, it comprehended reinforcement of their energy relationships in exterior markets, which provoked European reactions. Energy European Commissioner, Andris Pielbags, said then Europe was feeling deep concern as regard Russia and Algeria gas agreement.

2007-02-06
Djalal Bouati