Europe can’t do without Russian gas

The head of the Italian company Eni, Paolo Skaroni says that Europe should cooperate with Russia in the construction of the “South Stream” pipeline, pointing out that if Russia shifts the supply of the bulk of its gas to the East, Europe will be left without energy. Experts say that the role of Russia will increase, in view of instability in the Middle East and a review of its energy policy by the EU.

European politicians and businessmen are changing their opinions about Russia’s role in ensuring energy security for the Continent. The panic triggered by the unrest in the Middle East has abated and the threat of social starvation seems to have disappeared, but the prospect of being left without energy appears to have forced the EU  to do a  rethink of its relationship with  Russia. In an interview for the  Italian “Sole 24 Ore” newspaper, Mr. Skaroni said that Europe needs Russian gas via the ”South  Stream pipeline”, saying that it is only Russia which can guarantee energy  for Europe in the future, that is if China and India, which are in constant talks with Russia, do not beat Europe to the gun.

Konstantin Simonov, Director General of the National Energy Security Foundation says that Europe is gradually becoming aware of the mistake in its previous policy relating to energy security.

“We have seen the Arab springs in North Africa, and a potential revolution in Algeria, the third largest supplier of gas to Europe. The situation in Saudi Arabia is unclear, but there are persistent rumours about political instability in the kingdom. The “South Corridor” project has not been implemented, there is no connection between Azerbaijan and Turkmenistan on the Caspian seabed and gas is not coming from Iraq, and of course, Iranian gas is out of the equation, in view of the tough sanctions by the UN”, Simonov said.

Experts recall that Gazprom plans to deliver to China up to 68 billion cubic meters of gas per year, which can be met from the combined capacities of “South Stream”’ 63 billion and “Nord Stream” 55 billion cubic meters annually.

Japan, which has been hit by a quake and tsunami will require a large amount of energy to feed its now sluggish economy. India has signed an agreement with Russia, on the purchase of nearly all the liquefied gas from the Stockman deposits, where production is to start soon. Europe would have to compete with Asian countries whose economies are booming, Simonov said.

“There are several anti-Russia politicians in Brussels, including, unfortunately Manuel Barroso, who does not hide his anti-Russian sentiments. The U.S, which is actively pushing the “Nabucco” project is encouraging the anti-Russia mood in Brussels. It backs the construction of a pipeline from Turkmenistan to Azerbaijan, but hopefully, sanity will prevail” said Simonov. However, not all European politicians are ready to reexamine ties with Russia, and Brussels continues to search for a third energy package that will hurt the interests of the Russian Gazprom. Such a shortsighted policy could force Russia to re-examine its gas sale strategy in favour of the East.

By Roman Mamonov

The Voice of Russia, 30 June, 2011