6 countries uniting to break Russian gas monopoly

6 countries uniting to break Russian gas monopoly

cnnwire.blogs.cnn.com

STANBUL, Turkey (CNN) — Officials from six countries gathered Monday in Turkey to sign a deal to build a U.S.-backed pipeline, aimed at breaking Russia’s monopoly on natural gas supplies to Europe.

The proposed Nabucco pipeline would run from Turkey’s eastern border, through Bulgaria, Romania and Hungary, to a key gas terminal in Baumgarten, Austria.

Germany also is a partner in the deal, which is being signed in the Turkish capital, Ankara.

Russia controls the current network of pipelines that supply Europe with natural gas.

(visit the link for the full news article)

The Nabucco project is budgeted at 7.9 billion euros (about $11 billion).

Since the idea’s inception in 2002, plans for Nabucco have languished amid disagreements among consortium partners and lack of commitment from natural gas suppliers.

Turkey had demanded to retain 15 percent of the gas passing through the pipeline for consumption and export, which its European partners rejected.

The energy minister of Azerbaijan is expected to attend today’s signing, a top Western government official said.

Gas from Azerbaijan’s Shah Deniz 2 field will be a crucial component of the project. European officials have raised hopes that other gas producers, such as Iraq and Turkmenistan, also might contribute to the pipeline.

Big hurdles remain for the pipeline project named after an opera by Verdi.

Consortium members must raise billions of dollars for the Nabucco project. Construction has not begun, and gas is not projected to be pumped through until 2014.

Still, industry analysts called Monday’s intergovernmental agreement a significant development.

“It’s one of those steps that moves Nabucco out of the possible column and into the probable column,” said John Roberts, an energy security specialist with Platts.

“My own guess is roughly by the end of the year, it will be pretty clear that Nabucco will be built.”


Who knows waht Russia's reaction is

cnnwire.blogs.cnn.com
(visit the link for the full news article)

reply to post by heineken


HAHA i bet The Russian President is pretty #ing Pissed right about now

Its a proposal they have not signed.

As for trusting Turkey, well this is what Germany and France are avoiding as this will give Turkey the bargaining power for them to enter the E.U.

America will also back this option as it does not want Russia in charge of energy resources and it certainly wants Turkey amongst the E.U. elite.

It will be interesting to see how this is going to be counter balanced, although these rusky's are far more resourcesfull than you are led to believe. They all knew about this option and i am sure were going to hear the news in 48hrs thats going to shock europe.

Russia is likely to apply pressure to Turkey by military maneuvering - it also has a well developed intelligence agency, this will be a project that is unlikely to ever get finished.

The Russians are not going to let this go without a fight.

By no means, this pipeline is going to break the Russian gas monopoly. The capacity (32 billion in 2020) is not even going to provide a significant volume of the total EU consumption, which is more than 500 billion cu m. Like it or not, but the EU needs Russia, unless alternative solutions will soon be found.

The Russians tend to take these things personnaly.I would look for punitive price increases this winter.

Originally posted by tristar
Its a proposal they have not signed.

Exactly. Those involved can't even come to an agreement, I doubt the Russians are panicking.

As for trusting Turkey, well this is what Germany and France are avoiding as this will give Turkey the bargaining power for them to enter the E.U.

Partly true. An angle which most will probably not look at.

America will also back this option as it does not want Russia in charge of energy resources and it certainly wants Turkey amongst the E.U. elite.

Make no mistake, Turkey will never be part of the European elite.
Not because they are not Europeans, but because nobody actually wants them part of the European Union. Those that do, are few and far between, and only want Turkey in the EU because they have business interests in Turkey(read cheap labor factories) and having Turkey in the EU will make it easier for them to turn a larger profit, basically. But Turkey will soon find it self up s*** creek without a paddle, as China and India continue to swallow up more and more manufacturing and the like. And that is what has really driven the Turkish economy as of late. Outside of the foreign owned car factories, there really isn't much. Two thirds of the population live in third world poverty levels commonly seen in the poorest regions of India and Africa. There's about 20 million restless Kurds whose population keeps ballooning. Turkey is really going to find it self in a world of problems in the not too distant future.
Rather then spending money on improving peoples lives, they spend 30 billion on the military..out of an annual revenues of 140 billion in a country of 70 million. It's actually not a good thing for Europe either, because there will be tens of thousands of Turks seeking a 'better life' in the European Union, and they will be flooding into Bulgaria and Greece and trying to get to other EU countries. Anyway I've gone off topic now..

It will be interesting to see how this is going to be counter balanced, although these rusky's are far more resourcesfull than you are led to believe. They all knew about this option and i am sure were going to hear the news in 48hrs thats going to shock europe.

I've heard the Russians have made offers to Azerbaijan or what's it's name.
In the end I think Russia will 'win' this one, mainly because it is now evident that America will not come to the aid of "alleged" allies in the region if Russia decides to use force, as we saw in Georgia after Georgia attacked Russian UN peace keepers in the breakaway regions.

Russia also has in the works Nord Stream up north, and in competition with Nabuco, South Stream, which will run from Russia across the Black Sea to Bulgaria, down to Greece and onwards to Italy, and through Bulgaria up through Serbia to Slovakia and Austria.

[edit on 13-7-2009 by BLV12]

so, is this statement something some people know about:

"They all knew about this option and i am sure were going to hear the news in 48hrs thats going to shock europe"

Or is this just speculation?

Sorry sp correction


[edit on 14-7-2009 by boudreaux]

Originally posted by boudreaux
so, is this statement something some people know about:

"They all knew about this option and i am sure were going to hear the news in 48hrs thats going to shock europe"

Or is this just speculation?

Sorry sp correction


[edit on 14-7-2009 by boudreaux]

which news..pls ellaborate

reply to post by heineken


See the last paragraph of the following post:

Originally posted by tristar
Its a proposal they have not signed.

As for trusting Turkey, well this is what Germany and France are avoiding as this will give Turkey the bargaining power for them to enter the E.U.

America will also back this option as it does not want Russia in charge of energy resources and it certainly wants Turkey amongst the E.U. elite.

It will be interesting to see how this is going to be counter balanced, although these rusky's are far more resourcesfull than you are led to believe. They all knew about this option and i am sure were going to hear the news in 48hrs thats going to shock europe.

This is just another reason to go to war. I guess it will go nicely with the pipelines through Afghanistan. And then Iran. More and more I see that oil is only used as energy as a means of control. I am predicting sometime in the next few years they will cut off our oil and society will crumble, and we will be begging to do anything to have it back...

Originally posted by boudreaux
reply to post by heineken

 

See the last paragraph of the following post:

Originally posted by tristar
Its a proposal they have not signed.

As for trusting Turkey, well this is what Germany and France are avoiding as this will give Turkey the bargaining power for them to enter the E.U.

America will also back this option as it does not want Russia in charge of energy resources and it certainly wants Turkey amongst the E.U. elite.

It will be interesting to see how this is going to be counter balanced, although these rusky's are far more resourcesfull than you are led to believe. They all knew about this option and i am sure were going to hear the news in 48hrs thats going to shock europe.

Slightly earlier than expected but i am sure you will see the significance of my post as you have pointed out. How Russia has positioned itself across Eastern continent is nothing short of comparing it to an empire of energy resources.

Armenia’s Metsamor nuclear power plant is by most authoritative accounts the least safe reactor in operation worldwide. Both Moscow and Ankara have their sights set on the construction of a new plant that could not only guarantee Armenia ample electricity but would also allow for export to neighboring countries. Most important, the way in which a new plant would be put in place could virtually ensure Russian control of those exports — and thus greater leverage over Turkey and potentially Iran and Georgia.
In return for Moscow’s cancellation of $40 million in debt, Armenia granted Moscow control of the Metsamor plant, which provides about 40 percent of Armenia’s electricity. The government has holdings in three other power stations as well: the Sevan-Hrazdan hydropower plant, the Hrazdan thermal power station and the Armenian Nuclear Electric Plant. These facilities generate about 75 percent of the country’s electricity, and with the purchase of Midland Resources’ 80 percent stake in the country’s distribution network, Russia can directly control or leverage the entire Armenian power sector.
Rosatom is set to build Metsamor’s replacement with a projected capacity of 1,000 to 1,200 megawatts, which is twice that of the current plant. Armenian officials have said the new reactor could allow for the export of 6 billion kilowatt hours annually, roughly equivalent to Armenia’s entire consumption last year.

In a Gazprom-brokered deal, Armenia is already set to supply Iran with electricity in exchange for the gas supplied by Iran in the Iran-Armenia Natural Gas Pipeline. During an April phone conversation, Gul and Armenian President Serzh Sargsyan reportedly agreed to electricity exports to eastern Turkey of 1.5 billion kilowatt hours annually. The process is stalled at the moment reportedly due to “technical difficulties” on the Turkish side of the border. Armenia’s energy relationships with either of its major neighbors, however, cannot be expanded without Russia giving the green light and support. The vast majority of the income generated from Armenian electricity exports would go directly to Russian government coffers.

The control is set to expand. Rosatom is particularly interested in developing Armenia’s uranium fields in its southern Sunik region, estimated at between 25,000 and 100,000 metric tons. Rosatom’s Atompredmedzoloto, the world’s second-largest uranium mining company, and Armenia’s Environment Ministry have set up the Armenian-Russian Mining Company to begin development as part of a 50-50 joint enterprise. Production could begin as early as next year and any uranium exports would be handled by Russian firms.

www.moscowtimes.ru...