Brussels, 31/05/2011 (Agence Europe) - Although he recognises the value of the South Stream project for diversification of EU gas supplies, Commissioner Günther Oettinger pointed out that the Italian-Russian gas pipeline will be subject to internal market rules.
In Brussels on 25 May, at the presentation of the gas pipeline project to channel Russian gas to the EU under the Black Sea, bypassing Ukraine, Oettinger said that South Stream, “is not our top priority, but we recognise its value, in particular for Russia, for diversification of routes. We will support South Stream in its administrative processes in the EU, and we will not impose any unreasonable or unjustified level of administrative or regulatory requirements. We will act as fair partners”.
The energy commissioner explained that, “today, I have come to listen and to learn. For me, South Stream so far seemed more of a concept than a concrete project. What we know is that the gas in South Stream will leave Russia, cross the Black Sea and arrive in Europe. Beyond that, there are a number of questions. Where will the gas actually come from? Where will it arrive? How will it arrive, by ship or by pipeline? Will it divert gas from Ukraine? Once it gets to Europe, what will happen? Most importantly, who can ship gas in the project? Is it only Gazprom, or also other players? Of course, if South Stream for example gives access to gas independents active in Russia, then South Stream would deliver on two essential criteria: namely diversification of routes and counterparties. That means a stronger contribution to European diversification efforts”.
He also pointed out, firstly, that the EU was interested in, “a balanced trilateral EU-Russia-Ukraine solution on future gas flows to the EU” and, secondly, that when operating as transmission pipeline on EU territory, South Stream will be subject to internal energy market rules, henceforth defined by the 3rd liberalisation package. To name but the most important principles: “First, South Stream will normally have to allow all shippers to book, within the EU, capacity on the pipeline at non-discriminatory conditions; - second, tariffs charged to shippers will normally be subject to regulation by the national regulators in the countries concerned; - third, reverse flows must be technically feasible in case of emergencies. I understand that certain EU member states entered into bilateral agreements with the Russian Federation, which may partially contradict these principles. If this is true, these member states will nevertheless have to apply the internal market rules and they are under an obligation to bring their intergovernmental agreements in line with the EU legislation”. Piloted on an equal basis between the Russian energy provider Gazprom and its Italian counterpart, ENI, the project will soon be joined by the French energy company, EDF (10%) and Wintershall from Germany (15%). South Stream will have an annual capacity of 63 billion m3. The Bulgarian section is expected to be brought into service by the end of 2015 and to be operational by 2018. South Stream will go through Bulgaria, Croatia, Greece, Hungary, Serbia, Slovenia and Austria. (E.H./transl.fl)