European Union Energy Policy
Topic 1. Main and additional priorities of the European Union energy policy
Topic 2. Fuel and energy balance of the EU
Topic 3. Liberalization of EU gas and energy markets
Topic 4. EU energy diplomacy and external actions
Topic 5. The EU-Russia energy dialog
European Union energy policy
Milestones of EU energy policy
Evolution of European energy policy
irreplaceable part of
almost every aspect of
modern life from industry
to transportation, heating
and electricity, it is at the
heart of human
European Union project. The deep interaction and
cooperation among the founding members of the Union
crystallized around energy considerations.
The European Coal and Steel Community (ECSC)
Treaty and Euratom Treaty did not only establish the
roots of European Community but also ensured regular
supply of coal and coordination in nuclear energy.
lives, despite the fact that EU project “took off” with the
integration in economic domain and despite potential
beneficial effects of integration in terms of external energy
policy and action against climate change, European
Energy Policy displayed an unsuccessful example of
Energy is the significant item on the agenda of
European decision makers
about global warming, hazardous effects of certain energy types on
health and environmental damages due to energy production,
transportation and consumption, which overall require not only
secure access to energy but also access to clean and efficient energy.
change and energy efficiency had started to outweigh the agenda of
internal and international efforts of the European Union concerning
the creation of an energy policy.
choices of each Member State in line with their national
preferences, global interdependence requires energy policy
to offer a European dimension.
SECURITY OF SUPPLY
Maroš Šefčovič, Vice President
of the European Commission for
European energy policy:
Green Paper of 2006
The Commission's communication “An Energy Policy for
Europe” of 2007
- linked to climate change
- 80% of greenhouse gas (GHG) emission in the Union is
caused by energy related activities
aims at liberalization of energy market
at the opening of energy markets for the benefit of EU citizens in line
with latest energy technologies and investments in clean energy
Concerns for energy security and continuity of oil and gas flows to Europe can
be considered as fundamental reasons for the creation of a common policy, since
permanent supply of energy resources is part of national security understanding
of Member States in the modern world circumstances
In 2030, it is expected that reliance on imports
of gas and oil will rise to 84% and 93% as
opposed to 57% and 82% in 2007, respectively.
When such a level of dependency is combined with
uncertainty about the willingness and capacity of oil
and gas exporters to invest more and increase
production to meet the increasing global demand,
threat of supply disruptions emerge as one of the
major challenges of the century.
In the evolution of the EU itself, policies concerning energy
and energy security remained at the back plan. Left to
national discretion of Member States, decisions and
policies concerning energy security was initially excluded
from the EU level integration of European countries.
responding to international energy supply crises:
the Suez crisis in 1956
the Six Day war between Egypt and Israel in 1967
Arab oil embargo in 1973
oil crisis following Iranian revolution in 1979
1). political instability in producer countries and regional tensions
will lead to a disruption in oil supply
2). the threat that exporter countries can purposefully use oil and
natural gas as a weapon in their foreign relations
- Oil Stock Directive, 1968
- An amendment to the directive of 1968, accepted in 1972 72/425/EEC
- The establishment of International Energy Agency (IEA), 1973
- Two more directives - 73/238/EEC and 77/706/EEC
the end of ideological, political and economic divisions
between eastern and western Europe
in December 1991 political decision for EUROPEAN
ENERGY CHARTER was signed.
conditions on environment and sovereignty
BASELINES for a COMMON policy of the EU
to establish an internal market
to increase the EU’s role in the energy sector
to harmonize national and community level of energy
Renewable Sources of Energy”
incorporation of renewable energy sources into the future Community
strategy on energy
offered concrete strategies in the specific issue of renewable resources
mobilization of national and Community instruments for the development of
these resources in order to increase the percentage of renewable energy in the
EU’s energy mix
Strategy for the Security of Energy Supply”
environmental concerns and repeated the interdependence between the
Member States which required a Community dimension in the strategies
dealing with energy related challenges
the Union’s increasing import dependence
focused on the security of supply
offered a detailed study concerning EU’s energy mixture
Efficiency or Doing More with Less”
The Commission suggested the establishment of energy efficiency Action Plan
which would be a multi-level initiative combining national, regional, community
and international levels. From buildings to tyres and clean vehicles, the paper
examined several measures especially in industrial and transportation sectors,
which could contribute to energy efficiency.
Member States understood the importance of
community level actions in the sphere of energy
Competitive and Secure Energy”
competitiveness and the creation of an internal market (common European
diversification of energy mix
solidarity between member states
sustainable development as a response to climate change
innovation and technology for the increase of energy efficiency and diversity
through renewable resources
an integrated external policy
“20/20 Package” (2007):
reducing GHG emission by 20%
improving energy efficiency by 20%
achieving a 20% share of renewable energy
a 10% share of biofuels by 2020
- infrastructure needs
- the diversification of energy supplies
- external energy relations
- oil and gas stocks and crisis response mechanisms
- energy efficiency
- making the best use of the EU’s indigenous energy resources
34. The Kyoto Protocol(1997) is an international agreement
which is intended to lower the greenhouse gas emissions of
the industrialized world by 2012. Ideally, the end result of
the Kyoto Protocol should be a reduction of these emissions
to below 1990 levels. The agreement also addresses the
issue of the developing world, which is rapidly
industrializing and therefore producing a large volume of
The Kyoto Protocol
requires that appliances be labelled to
show their power consumption in such
a manner that it is possible to compare
the efficiency with that of other makes
and models. The intention is that
consumers will prefer more energy
efficient appliances over those with a
higher consumption, resulting in less
efficient products eventually being
withdrawn or decommissioned.
36. EUROPEAN EMISSIONS STANDARDSEach of the standards
Euro 1 to Euro 6 (the
latest) represent a total
amount of exhaust gas
emissions from a car. They
measure four main groups
of emission – carbon
EUROPEAN EMISSIONS STANDARDS
37. INTELLIGENT ENERGY EUROPEIntelligent Energy – Europe
(IEE) offered a helping hand to
organisations willing to improve
energy sustainability. Launched in
Commission, the programme was
part of a broad push to create an
INTELLIGENT ENERGY EUROPE
- reducing emissions by 80% relative to what they were in
1990 by 2050 = this is what Europe needs to do in order to
make sure that global warming does not go beyond two
degrees centigrade (2°C is usually seen as the upper temperature limit to
avoid dangerous global warming).
Council of October 2014. That is to aim at reducing carbon
emissions by 40% by 2030.
Now, we have the following objectives:
1. for 2020, a reduction of 20% relative to 1990
2. we have an objective for 2050, a reduction by 80% and
3. we have an intermediate objective for 2030, a reduction
In 2015, the Framework Strategy for Energy Union is launched as
one of the European Commission's 10 Priorities.
national level, not common European
A plurality of energy models
France, Sweden, Belgium
Poland, the Czech Republic,
the UK, the Netherlands, Italy
European Union comes from
energy produced in the EU and
from energy imported from
third countries. In 2015, the
EU produced around 46 % of
its own energy, while 54 %
in the EU, meaning the
range of energy sources
available, was mainly
made up by five different
Nuclear energy (29 % of total EU
energy production) was the largest
contributing source to energy
production in the EU in 2015.
Renewable energy (27 %) was the
second largest source, followed by
solid fuels (19 %), natural gas (14
%) and crude oil (10 %).
State to another. The significance of nuclear energy is particularly high
in France (83 % of total national energy production), Belgium (65 %)
and Slovakia (63 %). Renewable energy is the main source of energy
produced in a number of Member States, with over 90 % (of the
energy produced within the country) in Malta, Latvia, Portugal,
Cyprus and Lithuania. Solid fuels have the highest importance in
Poland (80 %), Estonia (76 %) and Greece (68 %), while natural gas is
the main source of energy produced in the Netherlands (82 %). Crude
oil is the major source of energy produced in Denmark (49 %) and the
United Kingdom (39 %).
48. What does the EU import? Oil.48
49. What does the EU import? Coal.49
50. What does the EU import? Gas.50
51. How dependent is the EU from energy produced outside the EU?In the EU in 2015, the dependency rate was equal to 54 %, which
means that more than half of the EU’s energy needs were met by net
imports. This rate ranges from over 90 % in Malta, Luxembourg and
Cyprus, to below 20 % in Estonia, Denmark and Romania. The
dependency rate on energy imports has increased since 2000, when it
was just 47 %.
How dependent is the EU from
energy produced outside the EU?
- much lower emissions
- there is no need to maintain a reservoir for crude oil or
storage for coal
- the efficiency of the transformation is high
transporting, high cost of transportation!
are Germany and Italy, accounting together for almost half
of the EU gas imports from Russia. Other larger Russian gas
importers (over 5 billion cubic meter per year) in the
European Union are France, Hungary, Czech Republic,
Poland, Austria and Slovakia.
gas consumption in 2007 was the following:
Czech Republic 77.6%
Oil is a mix of hydrocarbons that are liquid under
atmospheric conditions. Therefore, the fact that they are
liquid allows for easier treatment of it, easier
transportation, easier containment in tanks, and it is one of
the greatest advantages of oil.
the highest proved oil reserves oil deposits are in
Venezuela (20% of global reserves),
Saudi Arabia (18% of global reserves),
Canada (13% of global reserves), and
76% in 2000 to over 88% in 2014. The EU spends
some €215 bn on oil imports, over 5 times as much as
gas imports (€40 bn). Russia is the biggest supplier:
dependence on Russia has grown from 22% in 2001
to 30% in 2015.
59. Oil companies59
Eastern countries such as Algeria, Iraq, Libya, and
Angola, former Soviet states such as Azerbaijan and
Kazakhstan, and Nigeria and Angola in Africa. Russia
itself was the source of 30% of Europe’s crude imports.
Just two of the top 10 oil suppliers to the EU were European
– Shell and Statoil – whose combined crude market share
was 12%. In total 88% of Europe’s crude was imported.
61. CoalCountries exporting coal to EU are Russia, Colombia and
Australia with shares of 32.5 %, 23.2 % and 15.8 %
respectively 30.4 %, 23.7 % and 11.5 % in 2015. Imports
shares from USA and South Africa slightly decreased
respectively 14.3 % versus 17.4 % and 6.1 % versus 8.1 %.
62. Coal• Coal, as the largest artificial contributor to carbon dioxide emissions, has been
attacked for its detrimental effects on health. Coal has been linked to acid rain,
smog pollution, respiratory diseases, mining accidents, reduced agricultural
yields and climate change.
• Proponents of coal downplay these claims and instead advocate the low cost
of using coal for energy. Many European countries, such as Italy, have turned
to coal as natural gas and oil prices rose.
63. Nuclear energypotentially very cheap
the lowest carbon emissions
Nuclear power plants generate almost 30% of the electricity
produced in the EU. There are 130 nuclear reactors in operation in 14
EU countries. Each EU country decides alone whether to include
nuclear power in its energy mix or not.
64. Nuclear safetyThe EU promotes the highest safety standards for all
types of civilian nuclear activity, including power
generation, research, and medical use. In response to
the 2011 Fukushima nuclear accident, a series of
stress tests were carried out in 2011 and 2012 to
measure the ability of EU nuclear installations to
withstand natural disasters.
65. Radioactive waste and decommissioningRadioactive waste results from nuclear activities such as electricity
generation, medicine, and research. The EU's Directive for the
Management of Radioactive Waste and Spent Fuel sets out rules for
safely disposing of used radioactive materials.
The shutting down and decommissioning of a nuclear power plant at
the end of its lifecycle is a long and expensive process. The 'Waste
Directive' also requires the creation of EU member states plans for
financing the safe disposal of radioactive waste during
Radioactive waste and
66. Nuclear energyFrance is the one country that has the most of its electricity from
nuclear power. It has a dependency of approximately 75% of total
electricity produced from nuclear power.
But not many people realize that even Belgium, Slovakia and
Hungary have levels of dependency on nuclear energy that are of
the order of 50%. And then we have Sweden that has a dependency
of above 40%.
67. Nuclear energyRussian nuclear reactors in the EU are in Bulgaria (2),
Czech Republic (6), Finland (2), Hungary (4) and Slovakia
(4, with two more being built). Hungary has an agreement
for two more to be built, and Finland is planning one with
68. Renewable energyThe use of renewable energy has many potential benefits,
including a reduction in greenhouse gas emissions, the
diversification of energy supplies and a reduced
dependency on fossil fuel markets (in particular, oil and
69. Renewable energyThe share of renewable energy in energy
consumption increased continuously between 2004
and 2015, from 8.5 % to 16.7 %, approaching the
Europe 2020 target of 20 % by 2020.
70. Renewable energyThe share of renewable energy in the Member States was
highest in Sweden (53.9 % of energy consumption)
followed by Finland (39.3 %) and Latvia (37.6 %). This
share was lowest in Luxembourg and Malta (both 5.0 %),
the Netherlands (5.8 %) and Belgium (7.9 %).
71. Renewable energyThis positive development has been prompted by the legally
binding (обладающий обязательным характером) targets
for increasing the share of energy from renewable sources
enacted by Directive 2009/28/EC on the promotion of the
use of energy from renewable sources.
72. Renewable energy in the EU72
and energy markets
74. Liberalization Process: LegislationThe liberalization process of the natural gas market is a result of the
three Directives handed down by the European Commission in 1998
(98/30/EC), 2003 (2003/55/EC), and most recently in 2009
The Directives aimed to create an internal market for natural gas,
which would theoretically lower prices and increase energy
security through introducing more competition.
Liberalization Process: Legislation
75. Liberalization ProcessIn all of the Directives, there are several components that
comprise the bulk of the liberalization process, and they are:
third party access, unbundling, contracts, and a regulatory
The EU emphasized these because they were seen as the
primary barriers to a competitive market.
76. Liberalization ProcessThe first portion of the liberalization process requires states
to grant third parties to the gas transmission system and the
gas storage system. Third-party access (TPA) is when a firm
that does not own the actual pipeline or storage facility must
have access to operate it, assuming certain conditions are
met by both the owner and operator of the system.
77. Liberalization ProcessThe 2003 Directive extended third-party access to gas
storage facilities in addition to the transmission systems.
Since natural gas can be stored, storage facilities play an
important role; firms that are not a part of the production
process can buy gas, store it, and then eventually sell it to
customers at a later date, bringing another actor into the
transaction between producing country and consuming
78. Liberalization . Unbundling.The next aspect of the Directives is the concept of unbundling.
At its core, unbundling is separating vertically integrated companies,
forcing firms either to be only involved in either production or
transmission or distribution.
Emphasizing unbundling is supposed to facilitate the entry of more
actors in the market, thus making it more competitive.
Liberalization . Unbundling.
79. Liberalization. Interruptible contractsThe EU Directives is encouraging shorter and interruptible contracts,
starting in 2003.
The 2009 Directive went further and told Member States explicitly
that they “should encourage the development of interruptible supply
80. Liberalization. Regulatory authorityThe last major area of focus in liberalization reform is the creation of
a regulatory authority.
Chapter IX of Directive 2009/72/EC requires each Member State to
designate a single National Regulatory Authority (NRA). Member
States may designate other regulatory authorities for regions within
the Member State, but there must be a senior representative at
national level. Member States must ensure that the NRA is able to
carry out its regulatory activities independently from government
and from any other public or private entity.
Liberalization. Regulatory authority
81. Liberalization of EU gas marketThe Third Energy Package consists of two Directives and three Regulations:
Directive 2009/72/EC concerning common rules for the internal market in
electricity and repealing Directive 2003/54/EC
Directive 2009/73/EC concerning common rules for the internal market in
natural gas and repealing Directive 2003/55/EC
Regulation (EC) No 714/2009 on conditions for access to the network for
cross-border exchanges in electricity and repealing Regulation (EC) No
Regulation (EC) No 715/2009 on conditions for access to the natural gas
transmission networks and repealing Regulation (EC) No 1775/2005
Regulation (EC) No 713/2009 of the European Parliament and of the Council
of 13 July 2009 establishing an Agency for the Cooperation of Energy
Liberalization of EU gas market
cannot be separated from each other
due to their complimentary nature.
High import dependency trends
highlight that the Union is in urgent
need for a common approach to
external energy policy which would
shape relations and partnerships of
Europe with global energy actors
being consumers, producers, transit
countries or major companies
resources and fight against climate change the EU is aware that
the efforts of its members have to be combined with the
cooperation of other consumer states, developing countries or
producer states in order to obtain effective outcomes.
three major strategies:
1). the extension of internal energy policies and internal energy market to the
international arena, which is also based on the integration of energy into
broader external relations, which would eventually end up with a panEuropean Energy Community
2). dialogue with third parties
3). diversification is the last major strategy as it basically indicates the
strengthening of existing infrastructures and construction of new ones for
alternative energy supplies
space” in other words “common trade, transit and environment
rules” between the Member States and EU neighboring
The extension of EU’s own internal market to its neighbors and
partners is the strategy that the policy makers are trying to
pursue with the argument that only well-functioning
international market can assure affordable oil and gas supplies
and encourage new investments.
In the European Neighbourhood Policy Strategy Paper, the
Commission indicates that “Enhancing our strategic energy
partnership with neighbouring countries is a major element of
the European Neighbourhood Policy”. Hence, in order to
increase energy cooperation with EU neighbouring countries
which are key players in the energy supply security as suppliers
(such as Southern Caucasus countries, Algeria, Egypt and Libya)
or as transit countries (Ukraine, Belarus, Morocco and Tunisia),
ENP is a way to institutionalize external energy dialogues.
instruments through European Investment Bank (EIB),
European Bank for Reconstruction and Development
(EBRD), Neighbourhood Investment Fund.
The Kyoto Protocol is an international agreement which
is intended to lower the greenhouse gas emissions of the
industrialized world by 2012. Ideally, the end result of
the Kyoto Protocol should be a reduction of these
emissions to below 1990 levels. The agreement also
addresses the issue of the developing world, which is
rapidly industrializing and therefore producing a large
volume of greenhouse gases.
Norway is the second major natural gas and oil supplier to
the European Union.
June 1971 is the beginning of the production in the
Norwegian continental shelf, and since then twenty billion
barrels of oil have been extracted from the area.
91. Norwaydiffers from other energy suppliers to the Union
because it is a member of European Economic Area. The
legislation concerning EU’s internal energy market and
related policy arrangements about competition law,
environmental regulations, consumer rights and new
technologies are already implemented by Norway.
92. NorwayNot only the EU needs Norway as a reliable oil and gas
supplier but also Norway needs the EU since EU Members
namely, Germany, United Kingdom, France, Belgium, the
Netherlands account for the majority of Norway’s natural
gas exports in 2008.
93. Norwayand the EU act together to further develop their
partnership. The Commission as well emphasizes the
potential of Norway in the maximization of Europe’s
energy security and suggests the promotion of common
exploration projects in the Norwegian continental shelf and
the promotion of alternative energy production such as
offshore wind in the North Sea
94. AfricaConcerning EU’s dialogue with Africa, energy is
incorporated within the development and governance
issues. Poverty reduction projects and improvement of
energy delivery systems to rural areas attracts the Union’s
interests and to this end, initiatives and aid funds are
The example is the EU Initiative for Poverty Eradication
and Sustainable Development launched in 2002
95. AfricaIn the region, the EU policy makers associate the Union’s energy
interests with broader political and security considerations. Still, due
to high instability in the region, EU’s efforts remain insufficient in
the implementation of development projects. To illustrate despite
being the fourth major natural gas supplier of the EU, Nigeria
remained as the Africa’s “most under-funded state” since corruption
and lack of transparency hindered investment efforts. Instead of rule
of law, oil contracts and government positions were used as political
means to “buy off” militants.
96. AfricaNevertheless, Africa, more specifically North Africa has a
significant potential not only in hydrocarbons but also in renewable
energy sources. Despite the inconvenient conditions for
investments, secure extraction and transportation of resources,
Algeria, Egypt, Libya and Nigeria outstand as important suppliers
after Russia and Norway, especially in natural gas imports.
97. Middle Eastis the world’s important energy producing region and
world’s richest proven oil and natural gas reserves belong to the
region. Seeking ways to guarantee its energy security, EU aims to
institutionalize its energy relations with the region, especially with
the Persian Gulf countries some such as Iraq, Kuwait, Qatar, Saudi
Arabia and United Arab Emirates being member of Organization of
Petroleum Exporting Countries (OPEC).
98. Middle EastDespite the Union’s intense energy dialogues with Russia
or Caspian region, Middle East remains as a “critical player
in energy policy” especially due to its rich resources,
geographical advantages and its potential to stabilize world
market prices in line with its oil supply capacity.
99. Middle EastConcerning the region, EU’s effort to achieve international
cooperation in energy is not limited to the dialogue with the Gulf
Cooperation Council. The Euro-Mediterranean Energy Partnership
(Euromed) is another platform for EU to pursue its goals of energy
security and sustainability. The partnership consists of EU Member
States and Mediterranean and Middle Eastern partners (Algeria,
Egypt, Israel, Jordon, Lebanon, Morocco, Palestinian Authority,
Syria, Tunisia and Turkey) and its origins date back to 1995 the
Euro-Mediterranean Conference of Ministers of Foreign Affairs.
100. Caspian RegionCaspian region refers to five Caspian littoral states namely,
Azerbaijan, Iran, Kazakhstan, Turkmenistan and Russia.
The critical point about the region is the legal status of the Caspian
Sea. With the disintegration of the Soviet Union, the determination
of official sea boundary between the states emerged as a question.
No agreement has been reached between the littoral states
concerning the debate on whether the subject matter is a lake or sea.
101. Caspian RegionThis identification is necessary because, if the Caspian is a sea, in
line with the United Nations Convention on the Law of the Sea,
bordering countries will be able to claim 12 miles from the shore as
their territorial waters and beyond that a 200-mile exclusive
economic zone and this will cause an uneven distribution of oil and
natural gas resources in the basin.
102. Caspian RegionApart from the legal status of the potential reserves, the fact
that Azerbaijan, Kazakhstan and Turkmenistan are
landlocked states, the construction of oil and natural gas
transit routes create a further challenge for the region.
103. Caspian RegionThe institutionalization of relations with the Caspian
- the INOGATE, Interstate Oil and Gas Transport to
- Baku Initiative
- the Black Sea initiative
104. Caspian RegionEnergy outstands as the main item among the imports from the
Nevertheless, mineral fuels imported from the region represent very
small shares among total imports of EU from the world market.
Azerbaijan, Turkmenistan, Kazakhstan and Iran correspond to only
2.3%, 0.3%, 3.4 % and 2.8% of EU’s total imports, respectively.
Compared with the region’s oil and gas reserves, these results
indicate that the potential of these countries is not being efficiently
105. Southern Gas CorridorThe Southern Gas Corridor is an initiative of the European
Commission for the natural gas supply from Caspian and Middle
Eastern regions to Europe. The goals of the Southern Gas Corridor
are to reduce Europe's dependency on Russian gas and add diverse
sources of energy supply. The route from Azerbaijan to Europe
consists of the South Caucasus Pipeline, the Trans-Anatolian
Pipeline, and the Trans-Adriatic Pipeline (under construction). The
total investment of this route is estimated US$45 billion. The main
supply source would be the Shah Deniz gas field, located in the
Southern Gas Corridor
the European Union. This distinguishes Russia
from other energy partners and urges the Union to
develop a special partnership with it, as part of EU
energy security strategy.
outstanding feature is state’s control over resources. Russia’s oil
exports are under the jurisdiction of Transneft which is Russia’s
state owned pipeline monopoly.
Three oil pipelines:
the Baltic Pipeline System (BPS)
Gazprom accounts for almost 90% of Russian natural gas
production and controls the country’s gas exports.
Main gas pipelines:
1. NORD STREAM
Capacity: 55 billion cubic meters per year. Partners: Gazprom, Wintershall,
E.ON, Gasunie, Engie.
The Nord Stream pipeline became operational in 2011. First proposed in
1997, disputes between Kiev and Moscow in 2006 and 2009 prompted
Russia to stop natural gas flows through Ukraine, depriving Europe of
natural gas and accelerating Nord Stream construction. The pipeline
enables Russia to deliver energy directly to Germany and parts of Central
Capacity: 84 bilion cubic meters per year. Partners: Gazprom, Beltrangaz,
The Northern Lights and Yamal-Europe pipelines are two major systems
that deliver Russian gas to Eastern Europe.
Capacity: 26 billion cubic meters per year. Partners: Gazprom,
The Soyuz and Brotherhood pipelines are Gazprom’s major export routes
for delivering gas to Europe through Ukraine. They have a total capacity of
over 150 billion cubic meters. In an effort to avoid using Ukraine as a
transit state, Gazprom is seeking alternative routes from 2019 onward.
Capacity: 16 bilion cubic meters per year (expanding to 19 bcm). Partners:
Gazprom, BOTAS, Eni.
One of two major pipeline systems that Gazprom uses to deliver natural gas
to Turkey. Gazprom can deliver about 16 bcm to Turkey via Ukraine, and
another 16 bcm directly to Turkey via Blue Stream. At the moment, neither
pipeline alone has the capacity to meet Turkey’s energy demands. In 2014,
Turkey and Russia agreed to expand the capacity of Blue Stream by 3 bcm.
5. RUSSIAN GAS-WEST PIPELINE
Capacity: 16 billion cubic meters per year. Partners: BOTAS, Transgaz,
The Russian Gas-West pipelines deliver gas to Turkey through Ukraine,
Romania and Bulgaria. In the future Turkish demand will exceed both the
existing pipelines’ capacity and a third will be needed.
Capacity: 55 billion cubic meters per year. Partners: Gazprom, Shell, OMV,
Gazprom signed a memorandum of understanding with Shell, OMV, and
E.ON at the 2015 St Petersburg International Economic Forum to build the
Nord Stream-2 pipeline. As proposed, Nord Stream-2 would be the same
size as the original pipeline and go operational in late 2019. The pipeline
will increase capacity over time to balance out reduced North Sea
7. TURKISH STREAM
Capacity: 63 billion cubic meters per year. Partners: BOTAS, Gazprom.
The pipeline is designed to provide an alternative route to deliver natural
gas into southern Europe, bypassing Ukraine.
Capacity: 20 billion to 40 billion cubic meters per year. Partners: Eustream,
Eastring would connect infrastructure in Slovakia to Romania and Bulgaria.
Slovakia has taken the lead on the project and even suggested connecting to
TurkStream. Bratislava wants to be part of Gazprom’s plans to diversify transit
options away from Ukraine because Slovakia is the critical link between pipelines
in Ukraine and central Europe.
9. SOUTH STREAM
Capacity: 63 billion cubic meters per year. Partners: Gazprom, Eni, others.
South Stream was a pipeline system that would have sent gas from Russia to
Bulgaria across the Black Sea and then onward through Serbia into Central
Europe. Gazprom canceled the project in December 2013 and is pursuing the
TurkStream pipeline project instead, hoping to achieve the same strategic goal of
bypassing Ukraine. The European Commission opposed South Stream and
contributed to Gazprom’s cancellation of the project.
energy can be identified by three main legal grounds: European
Energy Charter, EU-Russia Energy Dialogue and “Four
However, the initial move which
transformed this relationship into a “partnership” is the ten year
bilateral treaty Partnership and Cooperation Agreement (PCA)
which came into force in 1997. Article 65 of the Agreement
directly addresses energy and offers cooperation in issues such
as supply security, infrastructure, energy efficiency and
formulation of energy policy.
relationship between EU and Russia has to be conducted in
another platform. EU-Russia Summits compensated this
deficiency and helped to increase the coordination between the
In May 2003, EU and Russia decided to set a framework for
cooperation. As the name suggested the new framework “Four
Common Spaces” focused on four main areas: economy, foreign
and security policy, justice and home affairs, and culture,
information and education”, energy being included under the