Gas producers agree to index gas prices to oil prices: Russian minister

09:25, April 20, 2010      

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Members of the Gas Exporting Countries Forum (GECF), a gas equivalent of OPEC oil cartel, agreed Monday in Algeria to index gas prices to that of oil, Algeria's official APS news agency reported.

"The final statement was unanimously approved. All ministers of the GECF member states agreed on meeting the objective of indexing gas prices to that of oil," Russian Energy Minister Sergei Shmatko was quoted by APS as saying following the 10th GECF meeting held in Oran, Algeria.

Algerian Minister of Energy and Mining Chakib Khelil told a press conference on Monday that his country wants the gas price indexed to that of oil.

"Now, gas unit price is set at 13 U.S. dollars per mBtu, i.e. a sixth of current oil prices, whereas it is a clear energy source that is less polluting and offers considerable comparative advantages for the development of renewable energy sources," he was quoted by state-run APS news agency as saying.

In late March, Algeria proposed that GECF countries reduce gas exports to restore balance in the global gas market.

Also on Monday, Shmatko said the meeting would "consider that gas prices should be fair, based on long-term contracts."

The GECF is made up of Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago and Venezuela. Its two observers Kazakhstan and Norway also attended the meeting.

Source: Xinhua


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