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South Stream

South Stream shapes European Energy Security, Nabucco Falls Behind EU-, US-backed Nabucco gasline project trails Russia's South Stream

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The Eastern Europe unanimously placed its bet on the South Stream. Plain fact is that the new Europeans chose to protect their national interests in spite of all temptations and threats from Brussels and Washington. Now the South Stream business blueprint is complete and it is entering construction stage. By the end of 2018 the pipeline is planned to reach a transport capacity of 63 billion cubic meters per year – enough gigajoules to supply energy needs of 38 million households. What has encouraged the pro-South Stream choice of Eastern European political elites presuming their frosty relations with Russia? Why did they not resort to broadly advertised alternatives? READ MORE

Gazprom Promotes the “South Stream” Intensively

By Mikhail Agadzanyan

The visit of the Russian President in Bulgaria, which was planned on the first decade this month, has been postponed. Nevertheless, it is expected that Vladimir Putin shall visit Sofia right after Turkey. Yet instead of the Head of Russian State Bulgaria shall be visited by “Gazprom” Chairman Alexey Miller who shall proceed with signing of the series of final investment treaties with East European partners of Russia on the “South Stream”. READ MORE

Stanislav Tarasov: NABUCCO Collapse – Thunderbird of Oncoming Geopolitical Changes in Near East

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The Prime Minister of Hungary Viktor Orbán reported that, Hungarian company MOL withdraws from the consortium on NABUCCO gas pipeline construction. According to the estimations of the experts, withdrawal from NABUSSO proves the fact that Hungary is more involved with Russian project “South Stream”. Yet in 2009 ex Prime Minister of Hungary Gyurcsány Ferenc said that Hungary should stand up for the construction of the both pipelines – NABUCCO and “South Stream” - with all its might. However as we see they didn’t manage to preserve this line: current Prime Minister of Hungary Viktor Orbán has made the priority not policy but “simple economic solutions”. “Through the territory of Hungary it is planned to pipe one of the branches of “South Stream” gas pipeline, which directly –  along the bottom of the Black Sea should connect Russia with the EU, - comments on the situation “Deutsche Welle”. – This project, which is lobbied by Gazprom, is considered to be the rival of NABUCCO. That is why in Budapest they could consider that it’s more beneficial to promote cooperation with Russia than force the construction of NABUCCO ". But earlier also the Prime Minister of Bulgaria Boyko Borisov during the meeting with the President of the Council of Europe Herman van Rompuy declared that “Bulgaria has no possibility to accomplish NABUCCO project”, although recently Sophia have given this project the status of state priority. READ MORE

‘Turkey will allow South Stream pipeline by end of year’

By Faruk Akkan, Fuat Seferov

Gazprom Deputy Chairman Alexander Medvedev has said Turkey will give the OK for the South Stream pipeline project, which will transport Russian natural gas to Europe by passing through Turkish territorial waters, by the end of the year. READ MORE

«Gazprom» Exiled from the Caspian Region

The balance of powers has started changing expressly. In the middle of September the EU Council approved the mandate of the talks of the EU with Azerbaijan and Turkmenistan on conclusion of legally binding treaty on Transcaspian gas pipeline construction. As Energy Commissioner Günther Oettinger declared, the access of the EU to the pre-Caspian region and Central Asia becomes a key issue from now on. Transcaspian gas pipeline is considered to be a part of NABUCCO gas pipeline which is represented by West as an alternative to the “South Stream”. In this respect Brussels declared that it is ready to get down to the operations on preparing the countries of Caspian region and Transcaucasia to the reality of negotiations, and to start specific talks with Azerbaijan and Turkmenistan. In this respect Iran has reminded: “Development of transport infrastructure in Caspian region, as well as hydrocarbons transportation is the exclusive prerogative of only pre-Caspian states”. READ MORE

Ukraine proposes alternative to South Stream

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By Maria Selivanova

Ukrainian President Viktor Yanukovych has proposed building one more gas pipeline across his country instead of the planned South Stream project bypassing it. Analysts say Russia is unlikely to support the idea because its goal is to minimize transit risks for its gas deliveries to Europe. READ MORE

Putin to give up South Stream ...Not!

By Kostis Geropoulos

As Russian and EU leaders met on 9-10 June in Nizhny Novgorod for the twice-yearly summit, avoiding the risk for another winter gas dispute with Ukraine was likely to be discussed between Brussels and Moscow. It’s no secret that Kiev wants to re-negotiate the terms of the gas formula agreed by Ukraine’s previous administration. However, earlier last week, Russian Prime Minister Vladimir Putin said that Moscow will not change the gas agreement it has with Kiev. The problem for Ukraine is that the deal linked the gas price to the oil market and, based on the current oil price trend, it’s facing a possible price of $500 per 1,000 cubic meters in the fourth quarter, said Chris Weafer, chief strategist at Moscow’s Uralsib bank. The first quarter average price was $264.30. READ MORE

South Stream’s Credibility Problems Deepen After Brussels Promotional Event

By Vladimir Socor

Russian Energy Minister, Sergei Shmatko, and Gazprom’s top hierarchy, along with their West-European business allies, advertised the South Stream project at a promotional event on May 25 in Brussels (Interfax, Euractiv, May 25, 26). The European Commission had agreed to be represented at this event, at Russian Prime Minister Vladimir Putin’s insistence, during the EU-Russia energy summit in February. The Russian side used the intervening months to prepare elaborate presentations of the project and deploy an unprecedented mass of lobbying power. It hoped through this all-out effort to demonstrate South Stream’s viability, neutralize legal objections to it within the European Union, and obtain EU financial backing for the South Stream project. Meanwhile, Putin and Shmatko had cast fresh doubts on this project by proposing a switch in the transportation mode, from pipeline to LNG, across the Black Sea. READ MORE

Europe's southern gas corridor: The great pipeline race

Several pipeline projects are competing with one another to bring to life the southern gas corridor – a vague blueprint to supply Europe with gas from the Caspian and the Middle East. EurActiv takes a look at the various European initiatives, including their common competitor: Russia's South Stream project. READ MORE

Two Lines of “South Stream”

By Tatyana Stanovaya

Longstanding confrontation between Russia and the European Union may end with the uniting of the Nabucco and South Stream gas pipelinesThe idea of possible uniting of two competing pipeline projects – “South Stream” and Nabucco – has been presented again: this was stated by the US Ambassador to Italy David Torn during the interview for Italian newspaper La Stampa. Earlier it was announced by the managers of Italian ENI. Russia treats the kind of prospect more than skeptic, although one shouldn’t ignore that in reality there is no absolute consensus on this issue inside the tandem. READ MORE