| Abstract: |
Restrictions on CO2 emissions, the nuclear phase out announced by some member
states, high emissions from coal-fired power plants, and barriers to rapid
development of renewable generation are factors that make the European Union
(EU) highly dependent on natural gas. With three non-EU countries (Russia,
Algeria and Norway) currently supplying more than half the gas consumed within
the EU and with projections pointing out that by 2030 internal sources will
only be able to meet 25% of demand, EU desperately looks for means to secure
new sources of gas supply. In this context, the Nabucco pipeline is planned to
deliver gas from Caspian and Middle East regions to EU market. It runs across
Turkey and then through Bulgaria, Romania and Hungary before connecting with a
major gas hub in Austria. On paper, Nabucco project makes perfect sense,
offering a new export route to EU markets for Caspian gas producers
(Azerbaijan, Turkmenistan and Kazakhstan) as well as Iran and, in time, Iraq.
The project is backed by the EU and strongly supported by the United States.
Perhaps most importantly, Nabucco would completely bypass Russia. This paper
addresses issues surrounding Nabucco project and their implications for
European gas security. |