Top Gas Exporters to Ramp Up Gas Supply

19 April 2010 (Last Updated April 19th, 2010 18:30)

The Gas Exporting Countries Forum (GECF) has agreed that pipeline and liquefied natural gas (LNG) suppliers should not compete with each other and should work to raise gas prices on a par with oil. The GECF met yesterday in Algeria to plan an escape from a gas glut that has pitted LNG

The Gas Exporting Countries Forum (GECF) has agreed that pipeline and liquefied natural gas (LNG) suppliers should not compete with each other and should work to raise gas prices on a par with oil.

The GECF met yesterday in Algeria to plan an escape from a gas glut that has pitted LNG and pipeline gas suppliers against each other, driving down prices and profits over the last year.

The group did not, however, agree to coordinated output cuts, Reuters reports.

"All ministers agreed that our aim is to continue to support the linking of gas to oil parity ... We also believe that there should not be competition between different types of gas," Russian Energy Minister Sergei Shmatko told Reuters.

Russia, the world's largest pipeline gas exporter, has seen its sales to Europe fall due to competition from LNG sellers who have been forced to find markets for fuel earmarked for North America before a surge in US shale gas production.