Russia, Algeria talk energy, mum on gas OPEC

By Oleg Shchedrov

MOSCOW, Feb 19 (Reuters) - Energy was high on the agenda of Russian President Vladimir Putin's meeting with Algerian leader Abdelaziz Bouteflika on Tuesday, but both men avoided mentioning the sensitive issue of an OPEC-style gas cartel.

"Algeria is the world's fourth gas exporter, Russia is also a major exporter," Putin told Bouteflika after a welcome hug ahead of the Kremlin talks.

"It is very important for us to be in contact on energy issues, especially now that Algeria is heading the OPEC."

Bouteflika flew to Moscow for the two-day visit with a group of ministers including current OPEC president Chakib Khelil, also Algeria's minister of energy and mines.

A growing warmth in ties between Algeria and Russia in the past few years has fuelled market and media speculation that the creation of an OPEC-style gas charter is in the pipeline.

President Vladimir Putin last year described the concept of a "gas OPEC" as an "interesting idea." Analysts have ruled out the possibility that such a grouping could move world prices to the same degree as OPEC because gas is much harder to transport and a world market in gas does not exist.

But the prospect of a "gas OPEC" has alarmed the European Union and the United States, which believe such an organisation will threaten global energy security.

Russia, the world's largest gas exporter, and Iran, Qatar, Venezuela, Nigeria and Algeria have said their annual gas forum -- which meets this year in Moscow in June -- aims to increase cooperation between key producers.