South Stream Gas Pipeline Suspended Again By Bulgaria
Posted: 08/22/2014 01:08:57 Edited: 08/22/2014 02:08:57 Clicks: 3003
Recently, Shtonov, the Minister of the Ministry of Bulgaria Economy & Energy asks for suspending the construction of South Stream gas pipeline until it conforms to the Law set out by EU. South Stream gas pipeline was begun to build at the end of 2012 and it is planned to complete by 2018. It starts from Russia, crossing through the Black Sea, Bulgaria, Serbia, Hungary and Slovenia and reaching to the Middle Europe.
Insiders point out that the gas supply in Bulgaria relies on Russia completely. Both Russian and Bulgaria can benefit from the program. However, due to crisis in Ukraine, Oresharski, the Prime Minister of Bulgaria ever requested to suspend the construction of South Stream gas pipeline at the early of June, except for technical contact. Whether the program is actually suspended or not, time will prove it.
It is reported that Bulgaria aims to introduce more competitions in case of Gazprom monopolizing the operation of South Stream gas pipeline. The movement accords with the expectation of European Commission. Although European Commission expects to ensure gas supply to EU without being affected by crisis in Ukraine, it does not hop that all of members of EU strengthen the dependence on Gazprom. For that European Commission is always showing skepticism to the program. OMV participating in the construction of the program claims that being faced with the current difficulties, Gazprom needs to reach an agreement with European Commission, such as allowing other suppliers to utilize South Stream gas pipeline. From 2017, about 60 billion cubic meters gas will be transmitted from the Black Sea to the Middle Europe through South Stream gas pipeline every year.
At present, all of gas supplied to the West Europe still needs to cross through Ukraine. Because of mediation between Russia and Ukraine which was carried out by Oettinger, the energy commissioner of EU failed last year. A new mediation will start in this autumn. Focuses of argument between two sides are still the prices of energy and bills which Ukraine has not paid yet. For the more nervous political situation, Russia may cut off gas supply to Ukraine and has impact on gas supply to the West Europe further, once they cannot reach an agreement. In spiteof relative sufficient gas reserves in EU last winter, some of members of EU such as Slovakia and Hungary will be faced with the bottleneck of gas supply, once Russia stops gas supply.
Insiders point out that the gas supply in Bulgaria relies on Russia completely. Both Russian and Bulgaria can benefit from the program. However, due to crisis in Ukraine, Oresharski, the Prime Minister of Bulgaria ever requested to suspend the construction of South Stream gas pipeline at the early of June, except for technical contact. Whether the program is actually suspended or not, time will prove it.
It is reported that Bulgaria aims to introduce more competitions in case of Gazprom monopolizing the operation of South Stream gas pipeline. The movement accords with the expectation of European Commission. Although European Commission expects to ensure gas supply to EU without being affected by crisis in Ukraine, it does not hop that all of members of EU strengthen the dependence on Gazprom. For that European Commission is always showing skepticism to the program. OMV participating in the construction of the program claims that being faced with the current difficulties, Gazprom needs to reach an agreement with European Commission, such as allowing other suppliers to utilize South Stream gas pipeline. From 2017, about 60 billion cubic meters gas will be transmitted from the Black Sea to the Middle Europe through South Stream gas pipeline every year.
At present, all of gas supplied to the West Europe still needs to cross through Ukraine. Because of mediation between Russia and Ukraine which was carried out by Oettinger, the energy commissioner of EU failed last year. A new mediation will start in this autumn. Focuses of argument between two sides are still the prices of energy and bills which Ukraine has not paid yet. For the more nervous political situation, Russia may cut off gas supply to Ukraine and has impact on gas supply to the West Europe further, once they cannot reach an agreement. In spiteof relative sufficient gas reserves in EU last winter, some of members of EU such as Slovakia and Hungary will be faced with the bottleneck of gas supply, once Russia stops gas supply.
