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Wednesday, 21 March 2007


Pipeline politics: EU's pipeline dream threatened

A quote from Speronews article on 21 March 2007

<< The European Union craves energy, but not to the extent that it wants to see members break rank to secure it. And that is exactly what Hungary is being accused of doing.

The controversy centers on the Hungarian government's mid-March announcement that it had agreed to a Russian proposal to extend the Blue Stream pipeline. Under the arrangement, Russian natural gas would reach Hungary via Turkey and the Balkans.

Unilateral Action

But some media are saying Hungary is positioning itself to gain preferential access to Russian gas and become a hub for Gazprom's operations in Central Europe. Furthermore, the argument goes, in agreeing to the deal the Hungarians became party to Russia's efforts to tighten their grip on energy deliveries to Europe.

Another concern, the media say, is that Hungary's decision sabotages the European Union's pet project -- the Nabucco pipeline, which was intended to circumvent Russian routes in bringing Caspian and Middle East gas to Europe.

The Hungarian government has defended its actions by claiming that Nabucco is still a "distant dream." The Hungarian government has defended its actions by claiming that Nabucco is still a "distant dream" and that the country had to face reality. Hungary's gas consumption, it claims, is increasing and the country cannot wait until 2012 for Nabucco to be completed. Furthermore, it has not yet been determine if there is enough gas in the Caspian region to fill Nabucco or to ensure that long-term delivery contracts can be met.>>





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