After Russia, Indonesia has now declared that it is not interested in forming an OPEC-like liquefied natural gas (LNG) cartel. Iran has called for a global cartel, but Indonesia, having been burned in the past by OPEC, doesn’t seem interested.

Russian President Vladimir Putin rejected the creation of a cartel that would influence prices, but said the idea of cooperating to help secure supplies to customers was interesting. The globalisation of the natural gas market thanks to the growth of LNG and greater connectivity between gas grids make a cartel increasingly possible, although analysts say the dominant use of long-term contracts priced against oil weigh against it. Indonesia would be a key player in any gas group, as it has been for years the biggest shipper of LNG, accounting for about 17 per cent of all supplies of the super-cooled natural gas in 2005, while neither Russia nor Iran currently produces LNG.

(That last bit puzzles us: We thought Russia was the largest exporter—via pipeline—of LNG. Update: As a helpful comment points out, “Russia exports natural gas, not liquefied natural gas. Same but different. A difference without enormous distinction, globally.” Thanks!)

Here is some background on the Gas not-cartel from Slate.

The notion that Vladimir Putin, Mahmoud Ahmadinejad, and Muyammar Qaddafi would reliably stick to the terms of a cartel pact is laughable. What’s more, the natural-gas cartel would find its power limited by large producers who wouldn’t join. In 2004, the United States, Canada, the Netherlands, Norway, and the United Kingdom—democratic, liberal, Western countries all—collectively accounted for 35 percent of total global production.

There already exists the Gas Exporting Country Forum, which accounts for 40% output and 70% reserves, but it apparently does not fix prices. LNG is different from oil, of course, in that most of it is delivered by pipelines and not shipped. Reuters also reported earlier tensions:

“If I imagine that there is some agreement on limiting production or price, there is inevitably (an effect) on consumers,” EU Energy Commissioner Andris Piebalgs said at the time. In a further sign of tensions between European consumers and gas suppliers, Spain’s government this week proposed laws barring large producers like Russia and Algeria from selling directly to Spanish businesses.

The Antitrust Review deprecates cartels, especially beer cartels, and welcomes the news that there will not be another OPEC.

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