MOSCOW, April 20 (UPI) -- Delegates from the Gas Exporting Countries Forum made the unanimous decision to peg the price of natural gas to crude oil, officials in Moscow said.
Members of the 15-member GECF at their regular meeting in Algeria discussed falling prices of natural gas. Algerian Energy Minister Chakib Khelil said increased gas production and subsequent liquefied natural gas volumes pushed gas prices down.
The price of natural gas has plummeted due in part to declines in demand from the global economic recession and an increase in natural gas production in the United States.
Khelil said during the meeting that market expectations for natural gas over the next five years were "rather worrying."
Russia, Iran and other leading natural gas producers had their first ministerial meetings for the GECF in Tehran in 2001. It was established as a forum to boost cooperation among member states similar to its oil counterpart, the Organization of the Petroleum Exporting Countries.
Russian Energy Minister Sergei Shmatko said the delegates at the Algerian meeting agreed to peg gas prices to crude oil, Russia's state-run news agency RIA Novosti reports.
"The joint statement was adopted unanimously," he said. "It aims to maintain gas prices and ensure parity of gas and oil prices."
