Moscow Times: Putin Targets Global Gas Trade

Moscow Times: Putin Targets Global Gas Trade

By Anatoly Medetsky

Prime Minister Vladimir Putin stressed the need to coordinate the global gas trade on Wednesday after a meeting with his counterpart from Qatar, a country that has badly dented Gazprom's market share in Europe in recent months.

"It is in the interests of both Russia and Qatar to have a close coordination on global markets," Putin said. "First of all, this, of course, concerns the gas area."

He added that he hoped the Gas Exporting Countries Forum, which will convene next month, would act as an "efficient" tool to steer major gas-rich countries toward joint policies.

Qatar, an exporter of liquefied natural gas, or LNG, rerouted much of its deliveries from the United States to Europe, starting last year, as many other suppliers did.

They reacted to a contraction of demand for outside gas in the biggest energy consumer because U.S. companies — using a new technology — began producing large amounts of shale gas, which was previously too expensive to extract.

European spot prices collapsed, making Gazprom's exports less competitive.

Qatari Prime Minister Sheikh Hamad Bin Jassim Jabr Al-Thani simply acknowledged the fact that he discussed the gas trade with Putin. He did not elaborate on the issue as the two leaders came out for a statement for the press. They did not take questions.

Al-Thani held separate talks with Gazprom chief executive Alexei Miller earlier in the day, expressing interest in joining forces with Gazprom in developing the huge reserves on the Yamal Peninsula, an effort that would involve construction of an LNG plant there, the company said in a statement.

If it takes a stake in the Yamal development project, Qatar could possibly take more care to safeguard Russia's exports. Qatar holds the world's third-largest gas reserves, after Russia and Iran.

Miller and Al-Thani also discussed the Gas Exporters Countries Forum, the statement said. The Qatar-based forum, whose executive director is Russian, will meet in the Algerian city of Oran on April 19 with an agenda of stabilizing global gas markets and preventing price rivalry among producers, the Kremlin said in a statement Wednesday.

The forum — dubbed the Gas OPEC by the media — has failed to live up to early fears among gas consumers that it would attempt to move prices in the same fashion as the Organization of the Petroleum Exporting Countries.

Alexander Nazarov, an analyst at investment company Metropol, said Gazprom would continue to cede its market share to Qatar because the country has a more flexible pricing policy, despite whatever discussions are had at the forum.

"I don't see how this organization will achieve a significant and positive decision," he said. "It's a project that was born dead."

In other news from the talks, the government said Gazprom was evaluating Block D of Qatar's North Field, which the country is going to sell at a tender. Gazprom could bid for the right to develop the gas reserves as part of a consortium, according to press materials that the Cabinet press officials distributed before the prime ministers met. The papers gave no further details on the possible deal.

Gazprom maintains its interest in working with Qatar in other Middle Eastern countries to explore and develop reserves, build pipelines and process gas, including liquefying it to transport by tankers.

RIA: Foreign ministers of post-Soviet security group to meet in Moscow

The council of ministers of a post-Soviet security group, the Collective Security Treaty Organization (CSTO), will gather in Moscow on Thursday to coordinate foreign policy.

The top diplomats of seven ex-Soviet states are also expected to sign joint statements on Russian President Dmitry Medvedev's European security initiative.

Russian President Dmitry Medvedev proposed drawing up a new pan-European security pact in June 2008, and Russia published a draft of the treaty in late November 2009, sending copies to heads of state and international organizations, including NATO.

The ministers will also adopt a joint statement on the 2010 Review Conference of the Parties to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), to be held in May 2010 at UN Headquarters in New York.

The CSTO comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Uzbekistan and Tajikistan. Russia's security strategy until 2020 approved by Medvedev envisions the CSTO as "a key mechanism to counter regional military challenges and threats."

MOSCOW, March 25 (RIA Novosti)

RIA: Russian warship to take part in Blackseafor naval drills

The Caesar Kunikov large amphibious landing ship from Russia's Black Sea Fleet will take part in regular Blackseafor naval drills in April, the fleet's press office said on Thursday.

Blackseafor was formally established in 2001 on Turkey's initiative and comprises Turkey, Bulgaria, Ukraine, Romania, Georgia and Russia. It conducts search and rescue operations and environmental monitoring, and organizes goodwill visits to Black Sea countries.

Its charter says Blackseafor can also be deployed for peacekeeping operations under a UN or OSCE mandate.

This year's drills will be conducted under the command of the Bulgarian Navy.

The Blackseafor warships will practice tactical maneuvers, the conduct of combat operations against surface ships, air defense and communications, the press office said.

The warships will also practice assisting distressed ships, naval isolation, ship inspection and provision replenishing at sea. Special attention will be paid to anti-terror exercises.

Georgian warships have not participated in the Blackseafor exercises for a number of years.

Russia has said it will not take part in any naval exercises involving Georgian warships.

Diplomatic ties were cut off between Russia and Georgia in August 2008 after a five-day war over the former Georgian republic of South Ossetia.

The Caesar Kunikov is a Ropucha-I class large landing ship. It was involved in the conflict between Russia and Georgia in August 2008.

MOSCOW, March 25 (RIA Novosti)