PREVIEW-Algerian visit to Russia to talk gas OPEC, weapons

By Amie Ferris-Rotman

MOSCOW, Feb 18 (Reuters) - OPEC president Chakib Khelil arrived in Moscow on Monday with Algeria's president Abdelaziz Bouteflika for a two-day state visit, a trip expected to further talks on creating a gas group similar to oil exporters OPEC.

Bouteflika and Khelil, who is also Algeria's minister of energy and mines, will speak with Russian President Vladimir Putin on Tuesday, but the collapse of a recent energy deal and a report over the return of Russian arms could taint the meeting.

A cooperation deal set up last year between Russian gas export monopoly Gazprom (GAZP.MM: Quote, Profile, Research) and Algeria's state-owned energy firm Sonatrach fell apart at the end of last year when both sides backed out, declining to give a reason.

The proposed partnership, in which Sonatrach would participate in gas exploration deals in Russia, further raised a long-held fear in the European Union over potential fixed prices by two of Europe's top gas suppliers.

Market talk and media reports in recent months have pointed to the possible creation of an OPEC-style gas charter, which would make the informal club of major gas exporters official.

Russia, the world's largest gas exporter, and Iran, Qatar, Venezuela, Nigeria and Algeria have said its annual gas forum aims at increasing cooperation between key producers.

"The forum is one thing, an OPEC-style grouping is another, which we are not commenting on," said Kirill Fyodorov, spokesman for Russia's Energy Ministry.

The group's seventh forum will be held in Moscow this summer. While Europe and the United States oppose a plan which they say would pose a danger to global energy security, experts believe it could happen, but only in the distant future.