EU to agree on joint energy policy plans: “Nabucco Pipeline” resurrected (Jan 9, 2007)

Jan 9, 2007 (Romania Report)

The European Commission is to lay out on Wednesday broad plans to cut greenhouse gases and reduce the EU's dependence on foreign energy while boosting competition in the market. Amid Russia’s aggressive energy offensive, EU revives the “Nabucco” pipeline project.

The European Union's executive has high hopes that the plans will lead to nothing less than a "new industrial revolution" that would make Europe energy-efficient without hurting economic growth and jobs.

The plans call for the 27-nation bloc to forge a common EU energy policy by stepping up regulation of the market, diplomatic efforts towards suppliers and the development of renewable sources.

"A common European response is necessary to deliver sustainable, secure and competitive energy," the commission said in a draft of its plans seen by AFP.

After oil price spikes and disruptions of Russian gas deliveries, energy policy has often received top billing at summits of EU leaders, who have called on the commission to draw up plans for a joint EU energy policy.

Brussels' answer has been to focus on beefing up competition, speaking with a single EU voice towards suppliers such as Russia and boosting support for renewable energies and the bloc's innovative emissions trading scheme.

Despite leaders' backing for a joint EU approach to energy challenges, many members have dragged their feet about opening energy markets to competition, sought individual deals with Russian gas giant Gazprom and have flouted their obligations towards the emissions trading scheme.

But now, as Mr. Putin said in Dec. 2006, Russia is even looking to acquire stakes in oil and gas distribution operators from some important EU member states.

The oil delivery disruption staged by Russia yesterday, made the EU states understand that Moscow (which owns 1/3 of the world gas reserves) really plays hard. The EC President Barroso said today that it is not acceptable from a supplier to cut oil delivery without consulting with its partners.

Recently, Gazprom signed a MoU with Serbia in order to build a natural gas pipeline based on the underused ‘Blue Stream’. The projected pipeline was to cross Bulgaria, Serbia, Croatia and Slovenia in order to reach North Italy (see the red line in the picture).

EU now seems more resolute in reviving the “Nabucco” project – which, by 2012, will bring Azerbaijani gas to EU. The “Nabucco” pipeline will cross Turkey, Bulgaria, Romania, and Hungary in order to end at the Baumgarten hub in Austria (see the dark blue line in the picture).



Romania Report