Europe Must Hurry To Secure Energy Supplies – Experts Say

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The European Union has said diversifying energy supplies and transit routes is one of its most urgent priorities. However, analysts say the EU needs to act fast if it wants to secure direct access to Central Asian oil and gas — and warn that Russia is purposely attempting to undermine some of the EU’s key initiatives.

The past several weeks have seen Moscow finalize bilateral energy deals with European Union members Hungary, Greece, and Italy — among others.

And every new deal casts greater doubt on the viability of the EU’s planned Nabucco pipeline from Turkey to Austria.
Svante Cornell of Johns Hopkins University in the United States, described some of the key elements in the Russian strategy.

Russia, he says, is poised to “steal” the idea behind Nabucco, by building its own pipeline from Turkey to Hungary — something that would give Moscow effective control over gas transited to Europe from Turkey.

Cornell notes that Europe’s inaction is difficult to understand, given that the Caspian region’s combined export capacity — more than 200 billion cubic meters (BCM) a year — considerably exceeds that of Russia, which currently exports an annual 140 BCM to the EU.

He says Turkmenistan could boost Central Asian export capacity even further if reports of a new gigantic gas field in the southeast of the country, Yolotan, turn out to be true — and if the country opens up to Western investors.

Cornell says Russia’s determination to prevent Europe’s direct access to gas reserves in the Caspian basin is partly motivated by its own need for the reserves, in order to meet its obligations to Europe.

“Russia is not investing, as we know, in its own gas fields, and already by 2010 they may have difficulties fulfilling their supply requirements, or commitments, to Europe,” Cornell says.

Huliq