Europeans May Have An Alternative To Gazprom

Vladimir Putin and his state-owned Gazprom have tried to monopolize the energy game, and Europeans were left out in the cold literally. For the past several years, Europeans have been stuck in the middle of a so called dispute between Russia and Ukraine.

At least 10 countries were affected by the gas reduction imposed upon them in January of 2009. This has alarmed the EU, and officials are concerned that a future crisis could happen again.

The Washington Times  Reports | Thursday, January 8, 2009 :

Russian Prime Minister Vladimir Putin ordered the state-owned energy giant Gazprom to cut all deliveries to Ukraine, and Ukrainian officials said the pipelines ran dry shortly after 7 a.m.

Schools closed, heating shut down, and nearly a dozen European nations reported a cutoff of natural-gas supplies in one of the coldest winters in recent memory. Thermometers fell to minus 13 degrees Fahrenheit in some capitals.

Always a dissatisfied customer will search for an alternative. That alternative source of energy may be the Nabucco Gas Pipeline Project.

The Nabucco pipeline will transport natural gas from Turkey to Austria — via Bulgaria, Romania, and Hungary. This would bypass Russia altogether. A major Polish gas company (PGNiG, Polish Petroleum and Gas Mining)  is considering linking to the pipeline in Poland.

While the Russia media has reported that there is not enough gas in the region, studies have indicated otherwise.

Reinhard Mitschek, an official with Austria’s OMV oil and gas group, and the managing director of the Nabucco pipeline, has stated that the EU is very supportive of the project.

The European Union is seeking diversity of energy supplies available to the area.

The pipeline would go through Turkey. Turkey will put pressure on the EU because they are trying to gain entrance in the EU. The Prime Minister of Turkey says that he would not use this as a political tool.

Turkey officials have said that they may sign a deal in June of 2009, providing that Turkey would get 15% in transit fees.

The project is estimated to cost 7.9 billion euros. Construction is expected to start in 2010, and the transporting of oil in 2013.

The EU is also considering a Russian based gas company called South Stream.