Energy

Posted: Tuesday, December 8, 2009
Author: Melanie Dominski

Bulgaria, long considered one of Russia’s most dependable energy consumers, is reevaluating its energy dependence on Russia. Bulgaria’s energy minister recently compared the Bulgarian energy sector to “the way English football used to be played – ‘with lots of energy, lots of running around the field, and comparatively little efficiency in achieving its goals.’” Bulgaria’s energy sector has long been inefficient since it was developed based on Bulgaria’s bonds with Russia, instead of on national utility.

Posted: Monday, November 30, 2009
Author: Melanie Dominski

Russian Prime Minister Vladimir Putin and Ukrainian Prime Minister Yulia Tymoshenko came to a compromise regarding existing gas contracts between their governments earlier this month. They agreed to lower the amount of Russian gas that Ukraine is required to purchase next year. This compromise is meant to reduce the pressure placed on Ukraine to fulfill monthly gas payments to Russia, which Tymoshenko admitted have been difficult for Ukraine this year due to a decreased energy demand resulting from the economic recession. Additionally, Putin has stated that Ukraine will not be fined for using less Russian gas this year than was required by contract.

Posted: Monday, November 16, 2009
Author: Melanie Dominski

On Monday, Russia and the European Union agreed to develop and implement an early warning system to protect Europe from potential energy supply cuts, such as the energy supply cut last winter that stopped gas flow to 20 European countries due to a gas dispute between Russia and Ukraine. The agreement would require parties on both sides to notify the other of any probable disruptions in the transit of gas, oil and electricity and to work together to find a solution. “This agreement gives a legal basis to and strengthens existing mechanisms,” says Denis Daniilidis, a spokesman for the European Commission’s delegation to Russia. The agreement also allows third parties to assist in negotiations.

Posted: Monday, November 9, 2009
Author: Melanie Dominski

After years of refusal, both Sweden and Finland approved the construction of the Nord Stream natural gas pipeline on Thursday, November 5. The pipeline will run from Russia to Germany through Russian, Finnish, Swedish, Danish and German waters within the Baltic Sea. The pipeline, owned by a Russian-German consortium, will help to diversify Russian gas transit countries.

Posted: Monday, November 2, 2009
Author: Melanie Dominski

Iran claims that the Nabucco pipeline, a project meant to diversify Europe’s natural gas suppliers away from Russia, will not be effective without the export of Iranian gas to the pipeline. Iran has the world’s second largest natural gas reserves after Russia, and is considered by many experts to be the most economical gas route to Europe. However, due to US opposition and trade sanctions on Iran related to their nuclear program, Iran has been blocked from involvement in the Nabucco pipeline project.

Posted: Monday, October 19, 2009
Author: Melanie Dominski

As Russia moves forward with plans to construct two natural gas pipelines that will connect Russia directly with Western Europe, Eastern European countries worry that this isolation from Western Europe will make them more susceptible to political intimidation regarding energy supply from Russia. Russia is currently developing the Nord Stream pipeline, a 750-mile pipeline that will run under the Baltic Sea from Russia to Germany, and the South Stream pipeline, intended to run under the Black Sea from Russia to Bulgaria.

Posted: Monday, October 5, 2009
Author: Melanie Dominski

For a long time it appeared possible that the Nabucco consortium would not be able to secure enough gas to make the pipeline viable. However, now it appears that the once considered impossible pipeline now has a surplus of options. Azerbaijan has agreed to supply Romania with 7.3 billion cubic meters of natural gas for the EU-backed Nabucco pipeline. However, this agreement is contingent on the fact that construction of the Nabucco pipeline be finished before the completion of its Russian counterpart, the South Stream pipeline. This deal was signed late last week during discussions between Romanian President Traian Basescu and Azerbaijani President Ilham Aliyev. Both presidents acknowledged the benefits of strategic partnership between the two countries, specifically concerning cooperation on the Nabucco pipeline, the Pan European Oil Pipeline, a proposed pipeline that will run from Romania through Serbia and into Croatia, and natural gas fields in Constanta, Romania. However, SOCAR, Azerbaijan’s state oil company, has yet to sign an official agreement with the Nabucco consortium regarding the export of gas, but has acknowledged its intention to do so as long as construction on the pipeline goes as planned.

Posted: Monday, September 28, 2009
Author: Melanie Dominski

Both Turkey and Romania, partners in the EU-backed Nabucco pipeline project, are showing interest in involvement in Russia’s South Stream pipeline project, reports RIA Novosti, a Russian state-owned news agency. The South Stream pipeline is Russia’s response to the Nabucco pipeline and an attempt at maintaining Russian energy dominance in the region. The South Stream pipeline will transport natural gas from Central Asia and Russia through the bed of the Black Sea into Europe.

Posted: Monday, September 21, 2009
Author: Melanie Dominski

Currently, Ukraine is attempting to broker agreements that would allow Turkmenistan’s gas to flow to Europe through Ukrainian gas pipelines. In the past, Russia has bought natural gas from Turkmenistan and sold it to Ukraine for national consumption and transport to Europe. This arrangement was halted in April following a pipeline explosion and a price dispute between Russia and Turkmenistan. By working directly with Turkmenistan, it appears that Ukraine is attempting to break away from Russian dominance over its gas market.

Posted: Friday, September 18, 2009
Author: Melanie Dominski

Presently, there are several plans underway for the development of pipelines that will deliver gas to Europe. Turkey’s geographical position makes it a central component to the majority of these projects. Therefore, Turkey has a unique opportunity to gain regional influence and improve its position with Europe, an objective Turkey deeply wishes to achieve. In the recent past, Russia has been the main gas supplier to Europe by way of Ukraine. However, Russia’s strained relations with Ukraine caused gas supply to be stopped late last year and early this year, causing several Eastern European countries to suffer from a gas shortage during the cold winter months.