OPEC-Style Natural Gas Cartel?
Russia, Qatar and, at one time Iran, who together own close to 60% of the world’s natural gas reserves, proposed the creation of an OPEC-style natural gas cartel. This is only enabled by the on-going increase in LNG trading in recent years. While there was much discussion of this at CERAWeek in Houston, the International Energy Association’s deputy executive director, William Ramsay, suggested this would not work as the majority of the LNG contracts are long term contracts and are not subject to price movement by cartels (or the market).
