WSJ: A Natural-Gas Strategy for Europe

The European Commission on Thursday released the results of the stress test carried out on the European gas system. This test, conducted as part of the European Energy Security Strategy, is intended to give European Union leaders an indication of whether they have the infrastructure in place to cope with a potential disruption in gas supplies. Not surprisingly, the results demonstrate that a prolonged supply disruption would have a substantial impact on the EU. Particularly effected would be eastern EU member states and Energy Community countries.

With 27% of Europe’s gas coming from Russia—more than half of that flowing through Ukraine—the test was a direct response to the tensions between Moscow and Kiev and, more specifically, the fear that the Kremlin might cut off supplies in retaliation to sanctions.

Shortly after the crisis first erupted in Crimea, the EU established a policy to maintain a minimum 30-day supply of gas. What the stress test may reveal, however, is that countries need to increase their coordination with each other, including better interconnection between domestic systems and the removal of restrictions to cross-border energy exchanges.  MORE