•  
  •  
  •  
  •  
  •  
  • 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.’
     

    Most Popular

    Related Articles

    Nasdaq launching energy futures market

    08/07/2015

    Exchange will provide market participants access to new suite of energy products

    Azure makes $83 million drop-down transaction to Azure Midstream Partners

    08/07/2015 Azure Midstream Energy LLC, a midstream natural gas gathering and processing company based in Dallas, Texas, and the 100% owner of the general partner of Azure Midstream Partners LP, has confirmed ...

    ETP begins binding open season for Texas/New Mexico pipeline

    08/06/2015 Energy Transfer Partners LP’s affiliate, ETP Crude LLC, will begin a binding open season for a new pipeline, the Delaware Basin Crude Gathering Pipeline, which will have the capacity to accept appr...

    NextEra to acquire seven natural gas pipelines in Texas

    08/04/2015

    NextEra Energy Partners LP has agreed to buy seven natural gas pipelines in Texas for $2.1 billion.

    IEnova to acquire Pemex's equity interest in JV

    08/03/2015 Sempra Energy's Mexican subsidiary, Infraestructura Energética Nova, SAB de CV (IEnova), has agreed to purchase Pemex's 50% equity interest in the Gasoductos de Chihuahua joint venture for $1....

    Phillips 66, ETP, and Sunoco Logistics form JV to construct crude oil pipeline

    07/31/2015 Phillips 66, Energy Transfer Partners LP, and Sunoco Logistics Partners LP have formed a joint venture to construct the Bayou Bridge pipeline that will deliver crude oil from the Phillips 66 and Su...

    More Oil & Gas Financial Articles

    Nasdaq launching energy futures market

    Fri, Aug 7, 2015

    Exchange will provide market participants access to new suite of energy products

    Azure makes $83 million drop-down transaction to Azure Midstream Partners

    Fri, Aug 7, 2015

    Azure Midstream Energy LLC, a midstream natural gas gathering and processing company based in Dallas, Texas, and the 100% owner of the general partner of Azure Midstream Partners LP, has confirmed the contribution of the equity interests of Azure ETG LLC.

    ETP begins binding open season for Texas/New Mexico pipeline

    Thu, Aug 6, 2015

    Energy Transfer Partners LP’s affiliate, ETP Crude LLC, will begin a binding open season for a new pipeline, the Delaware Basin Crude Gathering Pipeline, which will have the capacity to accept approximately 120,000 barrels per day of crude oil from receipt points located in Reeves County, Texas, and Lea County, New Mexico, for transportation to delivery points in Loving County, Texas, and Lea County, New Mexico. The open season began Aug. 6 and will end on Sept. 4.

    NextEra to acquire seven natural gas pipelines in Texas

    Tue, Aug 4, 2015

    NextEra Energy Partners LP has agreed to buy seven natural gas pipelines in Texas for $2.1 billion.

    IEnova to acquire Pemex's equity interest in JV

    Mon, Aug 3, 2015

    Sempra Energy's Mexican subsidiary, Infraestructura Energética Nova, SAB de CV (IEnova), has agreed to purchase Pemex's 50% equity interest in the Gasoductos de Chihuahua joint venture for $1.325 billion, plus the assumption of approximately $170 million in net debt. 

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ