Indonesia, a leading liquefied natural gas (LNG) exporter, is not interested in creating a cartel of gas producers that would attempt to control prices as Opec does, a senior energy ministry official said.
The idea of an Opec-style gas cartel has simmered for years, and was revived last week by Iran's Supreme Leader Ayatollah Ali Khamenei, although analysts give it long odds of happening.
'Indonesia prefers a non-binding gas exporters forum,' the official said.
Iran, holder of the world's second-biggest reserves, made overtures to top exporter Russia last week, suggesting the two establish the structure of a gas grouping like Opec. Together the two nations hold 40 per cent of the world's gas reserves.
Russian President Vladimir Putin rejected the creation of a cartel that would influence prices, but said the idea of co-operating to help secure supplies to customers was interesting.
The globalisation of the natural gas market thanks to the growth of LNG and greater connectivity between gas grids make a cartel increasingly possible, although analysts say the dominant use of long-term contracts priced against oil weigh against it.
Indonesia would be a key player in any gas group, as it has been for years the biggest shipper of LNG, accounting for about 17 per cent of all supplies of the super-cooled natural gas in 2005, while neither Russia nor Iran currently produces LNG.
But the Asian Opec member's output is falling as reserves dwindle, and it holds only 1.5 per cent of the world's total, according to BP's Statistical Review.
The oil minister of Qatar, which is overtaking Indonesia as the biggest LNG exporter, said last week that he also did not see the need for a natural gas suppliers' cartel.
Asked about the idea, Indonesian Mines and Energy Minister Purnomo Yusgiantoro said: 'There is no proposal on that issue so far. However, if there is any, we have to think of the costs and benefit.'
He did not elaborate. Indonesia's experience in Opec has been mixed, as its production has dropped sharply while domestic demand has risen, forcing it to spend more money importing increasing volumes of fuel and crude while the rest of Opec enjoys a revenue boom.
The Gas Exporting Country Forum (GECF) was formed in 2001. Member countries include Algeria, Bolivia, Brunei, Egypt, Indonesia, Iran, Libya, Malaysia, Norway (as an observer), Oman, Qatar, Russia, Trinidad and Tobago, the UAE and Venezuela.
The group accounts for around 40 percent of global gas output and 70 per cent of reserves.
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