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Gas Cartel Looms

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The Associated Press

Published: October 22, 2008

TEHRAN, Iran - Russia, Iran and Qatar made the first serious moves Tuesday toward forming an OPEC-style cartel on natural gas, raising concerns that Moscow could boost its influence over energy markets spanning from Europe to South Asia.

Such an alliance would have little direct impact on the United States, which imports virtually no natural gas from Russia or the other nations.

But Washington and Western allies worry that closer strategic ties between Russia and Iran could hinder efforts to isolate Tehran over its nuclear ambitions. In addition, the United States opposes a proposed Iranian gas pipeline to Pakistan and India, key allies.

In Europe - which counts on Russia for nearly half of its natural gas imports - any cartel controlled by Moscow poses a threat to supply and pricing.

Together Russia, Qatar and Iran account for nearly a third of world natural gas exports - the vast majority supplied by Russia - according to U.S. government statistics. The three hold some 60 percent of world gas reserves, according to Russia's state-controlled energy company, Gazprom.

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