Is Russia the Saudi Arabia of gas?

MOSCOW, Dec. 29 (UPI) -- Emerging liquefied natural gas technology and the formation of an international gas cartel may place Moscow at the top of the world energy sector, analysts say.

Russia recently heralded continued oil production at its eastern Sakhalin-2 oil and gas facility, the largest in the world. Meanwhile, Moscow last week hosted the formalization of the Gas Exporting Countries Forum, establishing a cabal of gas producers similar to the Organization of Petroleum Exporting Countries.

The majority of the world's natural gas travels through an expanding network of pipelines. But with Sakhalin scheduled to produce LNG by next year, exports and production from Russia could expand exponentially as LNG can reach broader markets through tankers, as does crude oil, Britain's Daily Telegraph said.

The "gas OPEC" sent fears through Western capitals as Russia has expressed its willingness to use its influence in the energy sector as a tool of foreign policy.

Though disputes had simmered for months, the August conflict between Russia and Georgia spilled over to the regional energy sector as Georgia hosts several major energy arteries, notably the Baku-Tbilisi-Ceyhan route.

New developments in LNG facilities and pipeline diplomacy may therefore put Russia at the helm of an increasingly coordinate gas sector, the Telegraph said.