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European Union

EU Urges Compliance with Laws as Russia Expands Nord Stream Pipeline

Strategic Insights

— 1 min read

The European Commission has underscored its commitment to enforcing EU laws to prevent market dominance by any single energy supplier, including Russia, amidst Gazprom's plan to expand the Nord Stream pipeline. The expansion, which would increase annual gas deliveries to Germany, counters Commission efforts to diversify energy sources and rely less on Russian gas. The Commission also emphasized its continued support for Ukraine as a major transit country, despite Moscow's long-term goal of bypassing Ukraine altogether.

Key Takeaways:

  • The European Commission will ensure that new pipelines, including the expanded Nord Stream, comply with EU laws on energy, internal market, and competition.
  • The Commission will work with Ukraine to maintain its role as a significant transit country for Russian gas supplies.
  • Gazprom's expansion of Nord Stream will increase annual gas deliveries to Germany by 55 billion cubic meters.
  • Russia aims to reduce its reliance on Ukraine for gas transportation, with Moscow planning to use Turkey as an alternative route via the Turkish Stream project.
  • The European Union has been working to diversify its energy sources, including the use of liquefied natural gas (LNG), despite Russian gas currently making up approximately one-third of the EU's energy needs.
  • Only approximately 57 percent of Russian gas capacity to the EU is currently in use.
  • The Nord Stream expansion is part of Gazprom's broader strategy to increase its presence in the European energy market.

Statistics:

  • 55 billion cubic meters: planned annual gas deliveries to Germany via the expanded Nord Stream pipeline.
  • 47 billion cubic meters: the capacity of Gazprom's Turkish Stream project to deliver gas to Europe via Turkey.
  • 57 percent: the percentage of Russian gas capacity to the EU that is currently in use.
  • 2015: the year from which a Global Data Point reference is mentioned, noting that gas is expected to become more tortuous.
  • 30%: the proportion of the EU's energy that is currently supplied by Russia.

Sources:

  • European Commission (no date mentioned in the original text)
  • Gazprom (press release, Thursday, no date mentioned)
  • Global Data Point, 2015

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