Eni SpA boss Paolo Scaroni 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.

In an interview for the  Italian “Sole 24 Ore” newspaper, Mr. Scaroni said that Europe needs Russian gas via South Stream, 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.

Constantine 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.

“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.

Alexei Miller, CEO of  Gazprom, believes that Europe will need more pipeline routes besides South Stream for importing natural gas from Russia.
“The spot market of liquefied natural gas in Europe has grown so thin because the supplementary amounts of natural gas have been diverted to Japan and about 12 billion cubic meters will go there before the end of this year,” Miller said. “If you take the Libyan pipeline, no gas is pumped towards Europe there at the moment.”

“We can see quite clearly that the huge gas transportation arteries are really much needed and that the market situation poses certain risks for Europe, and especially for Britain,” Miller said.Gazprom expects to finalize a feasibility study for South Stream,which is designed to bring up to 63 Bcm/year of Russian gas to southern Europe via the Black Sea, this autumn. The final investment decision on the project is expected in late 2012.

Source: Voice of Russia