Brussels, 01/12/2011 (Agence Europe) - The EU is prepared to introduce possible exemptions for the South Stream gas pipeline project but is still waiting for further information from the Russians.
A rapprochement is expected after the spat between Brussels and Moscow on the third legislative package for the liberalisation of the internal gas market. Günther Oettinger is not ruling out exemptions for the Italian-Russian South Stream gas pipeline project, which rivals the pan-European Nabucco project. The commissioner for energy provided assurances at the end of his meeting with the Russian energy minister, Sergei Shmatko, on Thursday 1 December in Moscow that “amendments to existing European legislation, the third package, are neither desirable or realistic. Nonetheless, there is a broad range of possibilities for introducing long-term exemptions or more flexible conditions for individual projects.” He added that “for the time being we do not have a precise idea in this connection and are waiting for further information. We will then see how to combine this with other exceptions.” Oettinger and Shmatko have therefore agreed to hold a meeting at the beginning of 2012 in this connection at an experts level. The aim of this meeting is to find a solution that is mutually acceptable, explains the Commissioner.
A key element in the third package for dismantling the monopolies and guaranteeing market competition, ownership unbundling of supply activities and transport by vertically integrated energy operators, is significantly upsetting the Russian Gazprom company, which is seeking to extend its distribution and network operations in the EU single market.
Russia would also like to obtain EU support for the South Stream project, which Gazprom is steering through with the Italian energy company, ENI. This project aims to channel Russian gas to southern Europe through the Black Sea. Russia would particularly like this gas pipeline project to obtain the status of a Trans-European Energy Network. Quoted by the Platts Agency, Shmatko explained: “The Commission is prepared to consider the TEN status for South Stream after it receives details on the route and supply volumes”.
South Stream will have an annual capacity of 63 billion m³, which will be connected under the Black Sea from Russia to Bulgaria, via Italy and Austria. The definitive route has not yet been decided at this stage but Russia has signed inter-governmental agreements with Austria, Bulgaria, Croatia, Greece, Hungary, Serbia and Slovenia. (EH/transl.fl)