EU Sets Natural Gas as Priority in Greece and Beyond
The EU is gradually expanding its reach in natural gas trans-border projects, aiming to increase the use of this energy commodity, in light of its 2050 vision. In view of this, Greece puts forward four projects of regional nature, right after a voting in the European Parliament of a relevant legislation aiming for the diversification of gas imports into the Union.
The directive for the Trans-European energy networks were voted in Parliament with 539 yes versus 85 votes against and 19 absents. This development is of crucial importance because the projects aim to create an energy market that will both integrate more and away from national protective markets, whilst it will also boost considerable use of gas for 500 million customers. The overall legislation calls upon the establishment of 12 energy corridors across the EU and a Law is to be implemented by all member states within the coming months.
The first project that was put forth by Greece is the Interconnector Bulgaria-Greece (IGB) that aims to be characterized as "Project of mutual interest" by all EU states. The final investment decision for that will take place by mid-2013. A second project is the Interconnector Italy-Greece (IGI) that DEPA's managers have assured it "Has the full backing of the Commission." Both of the aforementioned are working towards the multiplication of alternatives for the transfer of either Azeri gas into Europe or LNG shipments coming from third markets.
A third project that is also being pushed forward by DEPA is a Floating Storage Regasification Unit (LNG-FSRU) in Northern Greece. The technical features call for a capacity of 5 bcm per year aiming to fill both IGB and IGI so as to transfer gas to both Bulgaria and Italy through Greece. A fourth project being promoted for inclusion in to wider EU legislation is the so-called East Med gas pipeline that in the mid-term aims to connect the newly found offshore Eastern Mediterranean gas reserves with Continental Europe through Greece-Balkans. A similar project named Transmed has been proposed by Cyprus with a similar scope. All information point out that these two propositions will merge into one business plan in due term. The capacity for such a pipeline will be around 10 billion cbm per annum and with a total length of 1,200 Kilometers.
With final submissions due in 2013, the above plans will then be selected by the Commission that evaluates all Pan-European regional projects after an analysis by its peripheral experts bodies composed by scientists and technocrats. The important aspect is that the EU for the first time really pushes forward with ambitious planning to combine all available projects together and then select those that will offer the best chances for the creation of the single largest natural gas consumer base in the planet, until that is, China and India embrace the 'natural gas age' as well.
The Russian factor
The ongoing privatization of the Greek DEPA-DESFA, fiercely contested by the Russians, is an important aspect in that respect and it is of importance to note that the CEO of Gazprom paid yet another visit to Athens just 8 days from his first meeting with Greek Prime Minister, as reported previously in Natural Gas Europe. In his return he requested and recieved from the Greek government for a term posed in the privatization process to be changed, thus increasing the speculation that eventually Gazprom will be the likely winner.
Concurrently, the crisis in Cyprus which hit Russian private interests may well prove to be an exchange at hand between Berlin and Moscow with the former getting for first time in its history access to the East Mediterranean along with its vast natural gas resources, whilst the latter gains a foothold in the small but geo-economically favorable Greek market. This analysis has also been corroborated by Natural Gas Europe through a series of discussions with local energy stakeholders and foreign missions that openly talk about a "major shift of the geo-energy game in the region" that has as a final aim to form a “system of systems” between Eurasian gas producers and European gas consumers. At the same time similar acts of the play are being prepared in the other side of the planet between the Siberian reserves and the East Asian fast rising gas consuming markets.
Regardless of the final outcome of all plans, the 21st century will mark the reign of natural gas at the expense of oil, which shaped the previous century's history and culture.