December 2014 saw the reemergence of competition between rival pipeline projects in Eurasia—similar to the earlier competition between the Nabucco natural gas pipeline, proposed by a consortium of European companies, and Russia’s South Stream. Currently, Russia’s new proposed pipeline project—Turkish Stream—is challenging the Azerbaijani-initiated Southern Gas Corridor, which will carry Caspian-basin gas to Europe via the South Caucasus, Turkey and then across Southeastern Europe.
Turkey is already signed on to the Southern Gas Corridor—the Corridor’s longest pipeline segment, the Trans-Anatolian Pipeline (TANAP), will cross Turkey from east to west—but it is also being strongly courted by Moscow to host Turkish Stream (see EDM, December 17, 2014; February 20, 2015). This growing significance of Turkey in competing large-scale energy transit projects across Europe and Eurasia has also opened up a discussion domestically regarding which prospective energy union the country should become part of—European or Eurasian. Continue reading
A Russian newspaper has published an article suggesting that the Kremlin-favoured South Stream gas pipeline could drop Bulgaria, Serbia, Hungary, and Slovenia for its route, and instead reach its final destinations, Italy and Austria, through Turkey and Greece.
On Monday (18 August), Russian business newspaper Vzglyad published an article by journalist Oleg Makarenko, claiming that Gazprom has a “plan B” in case Bulgaria continues to obstruct the construction of the South Stream pipeline.
A caretaker government in Sofia, which took office on 6 August, has frozen the construction of South Stream, following clear indications from Brussels that the EU executive would impose infringements on Bulgaria, unless the country re-negotiates its bilateral agreement with Russia for the construction of the pipeline, which is in breach of EU law.
Key policy ties in with the Maltese government’s prospective energy shift to gas, supplied by Azeri state corporation SOCAR
The European Union is looking southwards to develop a “southern gas corridor” for natural gas from Azerbaijan to fuel the European mainland.
The European Commission released an EU energy security strategy earlier this week, in response to the political crisis in Ukraine which is threatening gas supplies from Russia, after Russian President Vladimir Putin warned that Russia could cut off supplies to Ukraine unless the latter starts to pay off its gas debt, which Russia’s Gazprom says stands at €2.5 billion. Continue reading
Europe’s grand plan for the gas pipeline from the Caspian Sea was derailed with the 2008 Soviet invasion of Georgia. That was the true intention behind the war and not a handful of unruly politicians or military provocations from a nation not much bigger than Israel, with half the capability. Putin himself said the war was pre-planned (Additional source here). Create the crisis and provide the solution — energy dependancy on Russia in this case. That was (and still is) the aim.
- Europe, U.S. support for Nabucco weakened
- Azeri consortium expected to pick winner in June
- Gas due to flow to European Union from 2019
VIENNA/BRUSSELS, May 28 (Reuters) – Europe’s grand plan for a gas pipeline from the Caspian Sea that would make its eastern states less reliant on Russia may have been fatally undermined by Russia’s even bigger project.
As Azerbaijan nears a decision on which pipeline to choose for its future exports, the Nabucco plan that was long the European Union favourite could lose out to the more modest Trans Adriatic Pipeline (TAP) across Greece to southern Italy. Continue reading