Gas Exporting Countries Forum: What Is GECF and What Is Its Objective? 

The Gas Exporting Countries Forum (GECF) was established in 2001, with the objective of generating “tangible cooperation among gas producing and exporting countries.”^a In May 2001, 10 countries attended the first Ministerial Meeting of the GECF in Tehran, Iran,^band since then it has held ministerial-level meetings almost every year. The membership has fluctuated from year to year, because the forum has had no formal structure, no membership requirements, and no dues.^c Topics discussed under the auspices of the GECF have included the structure of the organization, new regulatory policies in consuming countries, development of a natural gas supply and demand model, and various studies to be conducted for the benefit of the membership.^d 

At the Sixth Ministerial Meeting of GECF, Russia agreed to conduct a study of current and possible future pricing regimes for natural gas, fueling fears in consuming countries that the organization could become a producers’ cartel similar to OPEC. Indeed, since its creation, concerns have been raised in the natural gas importing countries that GECF could become a “Gas OPEC” that would restrict natural gas production in order to increase prices; however, representatives of many of GECF’s most important members in terms of their current involvement in the global natural gas trade have stated publicly that they do not think the GECF should be anything like OPEC, nor do they believe that OPEC-style controls are even possible in the natural gas market. Iran and Venezuela, on the other hand, have repeatedly made comparisons between the GECF and OPEC.^e The importance of statements from those two countries on the subject of GECF’s role is not clear, however, in that neither country is a major exporter of natural gas. In fact, Iran currently imports almost as much natural gas as it exports (although it is a major holder of natural gas reserves). Venezuela exports no natural gas but does import small volumes from Colombia. 

The most significant development for GECF in 2008 was its adoption of a formal charter at its Seventh Ministerial Meeting in Russia in December. Representatives from 17 countries attended the meeting.^f The Forum agreed to establish permanent headquarters in Doha, Qatar, and adopted a charter formalizing its goals: “to foster mutual interests by favouring dialogue between producers, consumers, government and industry, and to promote a stable and transparent energy market.”^g According to the Islamic Republic of Iran News Network (IRINN), the newly formed Executive Committee of the GECF is to hold its first meeting in Doha, Qatar, in March 2009, at which it will discuss candidates to serve as GECF Secretary General, approve a budget for the organization, and discuss “membership fees, the establishment of the secretariat, and financial issues.”^h 

Another significant development in 2008 was a cooperation agreement formed between Russia, Iran, and Qatar in October in Tehran, Iran. The Oil Minister of Iran, Gholamhossein Nozari, subsequently announced that the three countries had agreed to establish a “Gas OPEC”; however, the chief executive of Russia’s  Gazprom, Alexei Miller, referred to the agreement as a “Gas Troika,”ⁱ which is how the group generally has been characterized since its initial meeting. The purposes of the Gas Troika are unclear. One that has been stated is to examine possible joint projects for natural gas development among the three nations. Another seems to be to push the GECF forward. For example, Alexei Miller has been quoted as saying that he expected the Gas Troika to be a “locomotive” for the GECF.^j 

^aH. Hallouche, “The Gas Exporting Countries Forum: Is It Really a Gas OPEC in the Making?” (Oxford, UK: Oxford, Institute for Energy Studies, June 2006), p. 12, web site www.oxfordenergy.org/pdfs/NG13.pdf. 

^bH. Hallouche, “The Gas Exporting Countries Forum: Is It Really a Gas OPEC in the Making?”, p. 17. The 10 countries included Algeria, Brunei, Indonesia, Iran, Malaysia, Nigeria, Oman, Qatar, Russia, and Turkmenistan. Norway also attended as an observer. 

^cAccording to the GECF web site (www.gecforum.org), in 2009 there were 14 members of GECF: Algeria, Bolivia, Brunei, Egypt, Indonesia, Iran, Libya, Malaysia, Nigeria, Qatar, Russia, Trinidad and Tobago, the United Arab Emirates, and Venezuela. Equatorial Guinea and Norway are listed as observers. 

^dSee the GECF website (www.gecforum.org) for official statements released after the third, fourth, and fifth Ministerial Meetings. 

^eDeputy head of Gazprom, Alexander Medvedev; Russian Energy Minister, Sergei Shmatko; Qatari Oil Minister, Abdullah al-Attiyah; Algerian Oil Minister, Chakib Khelil; President of Indonesia’s Pertamina, Ari Soemarno; and Chairman of Libya’s National Oil Company, Shokri Ghanem all have been quoted in recent publications, speaking against the prospect of a gas OPEC. See A. Glazov and C. Tellinghuisen, “World’s Top Gas Holders Launch ‘Gas OPEC,’” Oil Daily, Vol. 58, No. 205 (October 22, 2008), pp. 1-2, web site www.energyintel.com (subscription site); “Gas Troika Talks, But Gas Forum Stumbles,” World Gas Intelligence, Vol. 19, No. 44 (October 29, 2008), pp. 1-2, web site www.energyintel.com (subscription site); “Russia, Iran and Qatar Form Gas OPEC’s Core,” International Gas Report, No. 610 (November 3, 2008), pp. 7-8, web site www.platts.com (subscription site); “Gas Exporters Agree Charter” and “Gas Exporters ‘Pose No Threat,’” International Gas Report, No. 612 (December 1, 2008), pp. 31-32; and L. Palti, “Gas Exporters Set Up Formal Organization,” Oil Daily, Vol. 58, No. 248 (December 24, 2008), pp. 1-2. 

^fAlgeria, Bolivia, Brunei, Egypt, Indonesia, Iran, Libya, Malaysia, Nigeria, Qatar, Russia, Trinidad and Tobago, the United Arab Emirates, and Venezuela attended as member countries. Norway and Equatorial Guinea attended as observer countries (during the meeting, Equatorial Guinea applied for membership). Kazakhstan attended as a guest and was granted observer status. 

^g“GECF Signs Charter; Formalises Association,” IHS Global Insight (December 24, 2008), web site www.globalinsight.com/SDA/ SDADetail15418.htm. 

^h“‘Gas OPEC’ To Hold Landmark Meeting in Doha,” The Tehran Times (March 7, 2009), web site www.tehrantimes.com/index_View. asp?code=190541.

ⁱA. Glazov and C. Tellinghuisen, “World’s Top Gas Holders Launch ‘Gas OPEC,’” Oil Daily, Vol. 58, No. 205 (October 22, 2008), pp. 1-2, web site www.energyintel.com (subscription site). 

^j“Gas Troika Ambitions,” World Gas Intelligence, Vol. 19, No. 44 (October 29, 2008), pp. 1-2, web site www.energyintel.com (subscription site).