Moscow and Riyadh discuss the idea of ​​a gas alliance on the OPEC + model

Russian Deputy Prime Minister Alexandre Novak believes that regulating the gas market on the OPEC + model is a “rational” idea, but adds that it is necessary to “work on it in more detail”.

Russian Deputy Prime Minister Alexander Novak and Saudi Minister of Energy on Thursday discussed the idea of ​​creating a gas alliance on the model of OPEC + for oil, in the midst of soaring blue gold prices .

During an energy forum in Moscow, Mr. Novak considered that regulating the gas market on the OPEC + model was a “rational” idea, but added that it was necessary “to work on it in more detail”, according to reports. comments reported by the Russian agency Ria Novosti.

At the same forum, Saudi Minister Abdelaziz bin Salman said he had discussed this idea with Mr. Novak, a former Minister of Energy very involved in OPEC +.

OPEC + is an alliance between OPEC and oil-producing countries that are not members of this cartel, such as Russia, which aims to regulate the supply of oil and thus control prices.

“We discussed it (…) and we concluded that it would be good to reflect on this question. We will look into it, ”said the Saudi minister, quoted by Ria Novosti.

Gas exporters already meet regularly within the Forum of Gas Exporting Countries (FPEG), an organization of which Riyadh is not a member. Oil heavyweight Saudi Arabia is only the world’s ninth largest gas producer, according to data from the US Energy Information Agency.

Unlike OPEC, the FPEG does not set production quotas for its members.

With gas prices varying greatly from one country to another and in a market dependent on long-to-build gas pipelines that bind producers and importers for decades, a cartel seeking to control gas prices would have more difficulty operating. organize that for the globalized black gold market.

The price of European gas did not react appreciably to these remarks: the reference market, the Dutch TTF (Title Transfer Facility), took around 12:15 GMT 5.78% to 99.03 euros per megawatt hour (MWh).

It reached an all-time high on October 6 at 162.12 euros, before Russian President Vladimir Putin assured that he would meet European demand. The price nevertheless remains up more than 600% over one year.

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