3rd AFCEA Europe Student Conference ‘People, Projects and Perceptions - even thinking is participation!’

26 October 2010The Queen Elizabeth II Conference Centre, London, United Kingdom

European Natural Gas Networks

Errika Georges

The American College of Greece

NATURAL GAS PIPELINES IN PROMOTING ENERGY SECURITY

WITHIN THE EU AREA

ENERGY in the EU• Need for energy import

dependendency from unstable and

insecure regions

• Today half of the EU’s gas consumption comes from 3 countries: Russia 40% – Norway 25% - Algeria 30%.

• On current trends gas imports would increase to 20 % over the next 25 years

Source: EU Green Paper, 2006

NATURAL GAS

• Commodity: being more strategically valuable

• Need for importing

• Natural Gas Pipelines: direct routes for the distribution of

itcreate networks that serveDIFFERENT INTERESTS

2 Major Pipeline Projects

Nabucco& South Stream U.S. + E.U. Russia

Currently a very hot issue Under negotiation for: FINANCE

RESOURCES

South Stream Pipeline

Russia’s position

• Market Economy is extremely dependent on

The Exports from Natural Gas by 50%

Natural gas reserves are extremely important

Analysis of Networks

• Transit Countries (retain sound relationships)

• Supply Countries (hard game)

What is Russia doing??Buys natural gas from Turkmenistan &

Azerbaijan for 2 reasons:

Strategy

Having sufficient reserves inside the country;

Not spending their reserves

Eliminating the reserves of the rival projects(!!)

Greek territory• Geopolitically benefited: WHY?

• Pipelines of different interests will cross the country:

Part of S. Stream IndependentPipeline

I - nterconnector T - rans-T - urkey A - driaticG - reece P - ipelineI – taly (Gr. – Alb. – It.)

• Strategically important for other reasons also:

Seen as an energy hub and interconnector since Algerian liquefied natural gas (LNG) will be crossing Greece to reach Bulgaria.

Possible alternatives – Strategic Partnerships??

Thank you for your attention

e.georges@acg.edu