European Union Sets Forward its Natural Gas Priorities

The Working Group of the Directorate General for the EU Commission has recently chosen several gas projects as 'crucial' for the overall energy security in Europe. This decision will play its role regarding the Southern Corridor developments, and the emerging architecture of natural gas infrastructure in Southeastern Europe. The projects selected are described as Common Interest and by late 2013 an official list  will be presented for all EU countries.

The Working Group examining the Southern Corridor has decided to reject the Cypriot plan regarding a floating LNG station for the Eastern Mediterranean gas reserves. The main argument was that that the EU cannot subsidize and promote a project that is going to supply markets outside of the EU. In general the DG of Energy in Brussels tends to favor policies aiming at integrating and securing the supply of the common market and pays little attention to any potential exports.

Additionally, the proposed Greek-Cypriot plans of the East Med and Trans Med pipelines recieved a green light to proceed towards final selection, while the technocrats involved in reviewing the issue in Brussels recommend a merging of plans, a process already starting to take place.

Also both the Trans-Adriatic Pipeline (TAP) and ITGI were accepted, although they received fewer points than Nabucco West, which Working Group members ranked best overall. It is of interest to note that representatives of the Shah Deniz II Consortium participated as observers in the Working Group's proceedings. Regarding the final selection for the Southern Corridor, due at the end of June, latest development from Brussels show another strong point ahead that favors Nabucco, although several commentators have also expressed the estimation that both plans will be selected.

Mid-June another session of the Working Group in Brussels will take place, where the final document to be submitted to the Commission will be decided upon. According to all available information by the delegations already in talks, the basic criteria is to promote natural gas projects that diversify imports and at the same time link more than two member states, preferably in a direct mode.  Nabucco West's plans follow that logic since it will link four states directly, namely Bulgaria, Romania, Hungary and Austria. Furthermore, reliable information points out that the Azeri Administration, which will play a crucial role for the selection of the preferred pipeline route from Shah Deniz, is in full knowledge of the Commission's intentions and the Working Group's propositions and selection procedure.

Lastly the foreign Minister of Azerbaijan, Elmar Mammadyarov, stated during a recent visit with his Greek counterpart that there is no preference in Baku between TAP or Nabucco and only the three companies collaborating in the Shah Deniz project (BP, Statoil and Socar) will take the decision.