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| Europe |
| EU: energy security is in the pipeline |
| 2009-09-26 |
| As arguably the most important energy project undertaken in EU history , the Nabucco pipeline was meant to bestow similar salvation on a continent becoming dangerously dependent on Russian gas. The pipeline would wean the EU off Moscow, which already accounts for a third of its imports, both by creating a major route along which non-Russian gas could flow and, more importantly, breaking Russia's stranglehold over transit from the east. Yet if the rhetoric from Moscow seems little changed, positive signs are emerging for the EU. Thanks to a mixture of blunders and the effects of the financial crisis, the Kremlin has found that its energy weapon has become blunted. Energy prices are half what they were 12 months ago and projections for the amount of gas Europe will need have fallen sharply. Moreover, in its attempt to deprive Europe of alternative supplies, Gazprom entered into an exorbitant deal to buy up all of central Asia's spare gas. Struggling to pay its bill, Gazprom was saved by a mysterious explosion in the pipeline from Turkmenistan. Suspecting foul play, the Turkmens are now offering to sell gas to Nabucco. In June, Germany and the six countries through which the Nabucco pipeline will pass finally gave formal backing to the project. Meanwhile, Nabucco has hired Mr Schroder's former foreign minister Joschka Fischer as a consultant. With Schroder having sold his soul to Putin and Gazprom, this ought to make for a few interesting cocktail parties. Construction is due to begin next year, with the first gas expected to flow in 2014. Some observers hope that the finalisation of Nabucco will teach the Russians that aggression is not always the best policy. |
| Posted by:ed |