Major gas-producing states have agreed to band together in a bid to stabilize gas prices by establishing the informal Gas Exporting Countries Forum (GECF), which is to be based in Doha.

With many analysts likening the new group to the Organization of the Petroleum Exporting Countries (Opec), it will face pricing obstacles not experienced by the crude cartel, chiefly because the majority of the world's gas is sent via pipeline and there is no benchmark tariff for exchange.

The idea of establishing a gas cartel has often long been opposed by consumer nations, many of which fear a disintegration of competition.

However, Russian energy minister Sergei Shmatko insisted that the cartel would pursue competitive pricing.

"I believe exporters can find the balance between competition and the harmonization of their energy policies," he said.

"Our most important task is the synchronization of our investment plans so that oversupply doesn't emerge."

In its latest bid to support crude prices, Opec earlier this month ruled on a supply cut of 2.2 million barrels a day, which will come into effect in January.


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