European Union energy chief Maros Sefcovic will seek clarification from Russia this week on the South Stream natural-gas project, which Russian President Vladimir Putin declared cancelled last month.
Sefcovic, the European Commission’s vice president for energy union, is scheduled to meet Russian Energy Minister Alexander Novak, Deputy Prime Minister Arkady Dvorkovich and OAO Gazprom Chief Executive Officer Alexey Miller in Moscow on Jan. 14. The scrapping of the proposed $45 billion Black Sea pipeline, declared by Putin in Ankara on Dec. 1, sparked concerns in south-eastern EU member countries because it could leave much of the region dependent on Russian gas transiting crisis-torn Ukraine.
The South Stream project was to carry natural gas to Europe, coming ashore in Bulgaria.
“One of my questions to my Russian counterparts will be how they see the current situation, what are their plans, how they want to address this complex issue of supplies of Russian gas to Europe after the Ankara announcement,” Sefcovic told reporters at a press conference with Bulgarian Prime Minister Boyko Borisov in Brussels today.
Sefcovic also said he will highlight that any projects of that magnitude in Europe will have to be in line with European law. The cancellation of South Stream followed calls by the EU regulatory arm on national governments not to continue the project until it is compatible with rules on public procurement as well as “unbundling,” which prevents a gas provider from also controlling the pipeline.
Gas Hub
Borisov’s plan is to turn Bulgaria into a gas hub for EU countries and neighboring nations in the European Energy Community.
“I really hope we’ll be able to find the right solution, especially after the visit to Moscow; the right solution as far as the gas hub is concerned or the continuation of the work on the South Stream,” Borisov told reporters.
Putin’s alternative to the South Stream project is building a pipeline to Turkey and then shipping gas overland to Greece and on to the rest of Europe.
The EU, which relies on Russian gas for around 27 percent of consumption, plans to strengthen cooperation among its members and build an energy union to reduce its dependence and facilitate transition to a low-carbon economy. The commission is due to release a a plan in the first quarter to accelerate cross-border gas and power interconnections, remove market barriers and diversify sources of energy while reducing greenhouse-gas emissions.
One of the goals of the union is to be able to better tackle situations like the current one in Bulgaria, according to Sefcovic.
“We clearly must be strong enough, independent enough and closely interlinked so that we can prevent any outside pressure, we can lead our own idepenednt energy policy and we can gurantee secure, affordable and environment-friendly energy,” he said.