•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Russia uses South Stream gas pipeline to widen EU division

    Geopolitical Information Service

    Plans for tougher economic sanctions against Russia are adding to a rift among European Union countries at the same time as there is division over Russia’s South Stream gas pipeline project, says GIS consultant Dr Frank Umbach, Senior Associate at the Centre for European Security Strategies (CESS) GmbH, Munich, Germany.
     
    Some EU-member states and their national corporate energy champions have sided with Moscow over the pipeline dispute when the EU’s authority and common political will is already being questioned by internal disagreement over sanctions.
     
    It is no coincidence that countries backing the South Stream project - Austria, Bulgaria, Italy and Hungary - are also opposing harsher sanctions,’ he says. ‘These countries do not want to risk their energy and trade ties with Russia. They prefer bilateral relations with Moscow at the expense of common EU energy security policies.’
     
    Bulgaria has annual gas consumption of 3 bcm, but is almost entirely dependent on Gazprom gas supplies. Russia’s bilateral relationship is such that it was able to directly influence Bulgaria’s energy legislation in Bulgaria.
     
    Hungary’s Prime Minister Viktor Orban has said that Russia’s South Stream pipeline is ‘a must’ for Hungary. The government does not want to rely on the outcome of the Ukraine crisis to decide its course of action.
     
    Rome, which currently holds the EU’s six-months presidency, has emerged as the biggest obstacle to imposing harsher sanctions on Russia after Moscow intensified its pressure and leverage on Italy as Russia’s second-largest EU trading partner.
     
    Austria is a key natural gas hub in Europe. Half its natural gas imports arrive from Russia via Ukraine and Slovakia, and are transported to Italy, France, Hungary, Germany, Slovenia and Croatia. A third of all Russian gas exports to Western Europe pass through the Austrian gas hub in Baumgarten which explains its close energy dependence on Russia and its major importance to Gazprom and the Kremlin.
     
    Disregard of the common policies has prompted Poland to demand the direct involvement of the European Commission in all inter-governmental agreements and negotiations to ensure EU law is followed,’ says Dr Umbach.  
     
    The EU is again standing at another strategic crossroads to live up to its long-term defined common strategic energy security interests.’
     

    Did You Like This Article?

    Get a free subscription to Oil & Gas Financial Journal.

    Related Articles

    Blueknight Energy Partners begins public offering of common units

    09/17/2014

    Blueknight Energy Partners LP has begun an underwritten public offering of 8,500,000 common units representing limited partner interests of the Partnership.  

    Pemex to spend $5.5B on plant upgrades and pipeline

    09/12/2014 Pemex plans to invest nearly $5.5 billion in expanding Mexico’s largest natural gas pipeline, building a fertilizer plant, and boosting output of cleaner-burning gasoline and diesel, according to R...

    Rimrock Midstream and NGL begin Grand Mesa Pipeline open season

    09/12/2014 Rimrock Midstream LLC and NGL Energy Partners LP have begun a binding open season starting Sept. 15 for their joint venture Grand Mesa Pipeline LLC crude oil pipeline. The open season will close on...

    Alon USA receives approval for Bakersfield rail and refinery project

    09/11/2014 Alon USA Energy Inc. has received the necessary approval from the Kern County board of supervisors to construct a new rail facility at the Bakersfield refinery and to make modifications to the...

    Gulf South holds open season for natural gas transportation project

    09/11/2014 Gulf South Pipeline Co. LP, a subsidiary of Boardwalk Pipeline Partners LP, has entered into 20-year firm precedent agreements with foundation shippers to transport 1.4 billion cubic feet per day o...

    More Oil & Gas Financial Articles

    Blueknight Energy Partners begins public offering of common units

    Wed, Sep 17, 2014

    Blueknight Energy Partners LP has begun an underwritten public offering of 8,500,000 common units representing limited partner interests of the Partnership.  

    Pemex to spend $5.5B on plant upgrades and pipeline

    Fri, Sep 12, 2014

    Pemex plans to invest nearly $5.5 billion in expanding Mexico’s largest natural gas pipeline, building a fertilizer plant, and boosting output of cleaner-burning gasoline and diesel, according to Reuters.

    Rimrock Midstream and NGL begin Grand Mesa Pipeline open season

    Fri, Sep 12, 2014

    Rimrock Midstream LLC and NGL Energy Partners LP have begun a binding open season starting Sept. 15 for their joint venture Grand Mesa Pipeline LLC crude oil pipeline. The open season will close on Oct. 3.

    Alon USA receives approval for Bakersfield rail and refinery project

    Thu, Sep 11, 2014

    Alon USA Energy Inc. has received the necessary approval from the Kern County board of supervisors to construct a new rail facility at the Bakersfield refinery and to make modifications to the refinery that will allow it to process light crude.

    Gulf South holds open season for natural gas transportation project

    Thu, Sep 11, 2014

    Gulf South Pipeline Co. LP, a subsidiary of Boardwalk Pipeline Partners LP, has entered into 20-year firm precedent agreements with foundation shippers to transport 1.4 billion cubic feet per day of natural gas to serve the first two trains of the planned liquefaction terminal, announced by Freeport LNG Development LP, near Freeport, Texas.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ