Gaddafi says libya supports gas OPEC idea

Libya welcomes the idea of creating an OPEC-like group of gas-exporting countries, Libyan leader Muammar Gaddafi told Russian President Vladmir Putin, the official Jana news agency has reported.

"We support the idea of establishing an organisation of gas producing and exporting countries modelled on the Organisation of the Petroleum Exporting Countries (OPEC)," said Gadaffi.

"I think gas producing countries have begun to respond to this idea, this call, and consultations will start between us to realise it," he said in a speech at a dinner hosted in honour of Putin, who is on a visit to the north African country.

Turning to oil, Gaddafi added that oil producing countries had a duty "to do something to help countries affected by the price hikes, particularly the African countries."

Some gas exporting countries are exploring the idea of turning an informal club of major gas exporting nations into a more formal organisation with an OPEC-like charter.

To date, there is no consensus about the idea, especially since gas is sold on long-term contracts rather than the spot system by which much crude oil is traded.

The United States and the European Union have repeatedly warned that turning the Gas Exporting Countries Forum into an OPEC-style gas group would pose a serious danger to global energy security and create room for price manipulation.

Russia, the world's largest gas exporter, as well as other members of the informal club, such as Iran, Qatar, Venezuela, Nigeria and Algeria, have said the gas forum aims at increasing cooperation between key producers so they better understand market needs. The forum next meets in June in Moscow.

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