US Companies Lobby for Gas Supply in Balkans
American businessmen are interested in investing in the natural gas business in the Western Balkans in part due to progress of the project to build an LNG terminal in Croatia and, at the same time, a delay of the Russian South Stream project.
That is what told US Senator Christopher Murphy said at a recent 'Transatlantic Talk' organized by the German Marshall Fund (GMF). As reported by the Serbian news agency Tanjug, Murphy, in answering participant questions, said that for this kind of work there is an interest of US companies, but that this requires the implementation of fundamental market and judicial reforms in each of the countries of South Eastern Europe.
"US investors are willing to invest in various industrial sectors, but under the umbrella of an effective rule of law and visible commitment to the fight against corruption and the last trace in these countries. Where governments are successfully providing legal security to foreign investors, American businessmen will be happy to come," said Murphy.
Democratic Senator is committed to energy independence from Russia, Western Balkans, and the opportunity for the US market gas seen after the cancellation of the South Stream project.
"America is increasingly exporting liquefied natural gas and oil and could become an alternative supplier in the Balkans. It is true that it is necessary to solve transportation of American energents to the Balkans, but already there are negotiations about building a new LNG terminal in Croatia", said Murphy, reports Tanjug.
As the GMF details on its website, Senator Murphy recalled being in Bulgaria with Senator John McCain during the announcement of the abandonment of South Stream, the proposed natural gas pipeline from Russia through the Black Sea to Eastern Europe. He asserted that "the alternatives ... has to be liquefied natural gas," though also indicated that there is "clearly a future for nuclear power in the region and in Europe," as reported by the GMF.
Miljenko Sunic, president of the Croatian Gas Association, considers Murphy's proposal very interesting.
'This topic is particularly important as the European Union approved a EUR 4.8 million for the preparation of documentation and tender for construction of an LNG terminal. Still to be seen whether that is significant, but for now it is obvious that the EU is interested in the development of this project. Given the size of it would be of interest to countries in the region, especially Slovenia, Bosnia and Herzegovina, Hungary, but also such as Czech Republic. If this terminal is connected with the Baltic Sea that would have made even more sense. Croatia will benefit in trading and transportation of gas, and neighboring countries through the expansion of supply of gas. The market will take gas of the best bidder', 'Natural Gas Europe' told Šunić, who estimates that the construction of an LNG terminal in Croatia could take three or four years begining from the announcement of an international tender.
American interest in the gas situation in the Balkans grew after news of Hungarian energy firm MOL potentially selling 49 percent of its shares in the largest Croatian oil company to Gazprom. Then, Russian oil and gas company would largely entered the wholesale market of the European Union.
Chris Murphy lobbied with the Croatian government against such a development, which admitted in a statement to Reuters in November 2014: "We thought it would be a good idea for me to stop by and see the prime minister and president to reiterate the importance of this issue."
The Russian Foreign Ministry criticized the Murphy's action as pressure on Zagreb: "In the circumstances of Western sanctions on Russia Washington exerts increasing pressure on the countries of South Eastern Europe, including Croatia, to maximize limitation of our energy and defence cooperation with countries in the region,", said Russian Foreign Ministry, which considered Murphy's visit as "unacceptable and contrary to general norms of international cooperation."
"In addition to the obvious political motives behind these actions there is a clear element of unfair competition and attempt to use the crisis in relations with Russia in order to strengthen the position of US companies and at all costs spread their influence in southeastern Europe," the Russian ministry said in a statement for the public.