EU allots 200m euros for Nabucco pipeline
The European Union detailed 2.3 billion euros ($3.14 billion) of
investment in gas pipelines and power cables on Thursday, aiming to
bolster gas routes from Russia and encourage new ones from north
Africa and the Caspian, Reuters reported.
The heavily promoted Nabucco pipeline project from the Caspian region will receive a contribution of 200 million euros towards its 7.9 billion euro costs, while the ITGI link between Italy and Greece gets 100 million.
"This 200 million is not enough to make a difference for Nabucco," said energy analyst Susanne Nies at French think-tank Ifri. "Their problem is still the same -- it's one of supply."
But there was also a 175 million euro contribution towards a lower-profile gas link between Spain and France that could have a big impact.
Spanish energy companies have been crying out for the connection, which would allow Algerian gas to flow into mainland Europe soon after the 8 billion cubic metre Medgaz pipeline starts pumping this summer.
In all, the European Commission said it would grant 1.39 billion euros for 31 gas pipeline projects and 910 million euros for 12 electricity interconnection projects.
"I see this as a turning point in Europe's energy strategy," energy commissioner Guenther Oettinger told reporters.
"Europe's energy and climate objectives require large and risky infrastructure investments," he added. "In the present economic situation, the risk is that businesses would have preferred to postpone such investments."
The plan to subsidise hundreds of kilometres of gas pipelines and power cables was part of a 4 billion euro package aimed at helping the bloc's member states to assist each other during energy crises.
One billion was already announced in December for pioneering technology to trap and bury carbon emissions from power stations, and 565 million was earmarked for offshore windfarms.
Energy security has topped the EU agenda since Russian armour came worryingly close to pipelines during its 2008 invasion of Georgia.
European nerves were further tested when supplies of Russian gas were cut for three weeks during a pricing dispute between Moscow and Kiev last January.
"Were there to be a gas crisis as in January 2009, which particularly affected Bulgaria, neighbouring countries should be able to give assistance," said Oettinger. "To do that, they need the appropriate pipelines." *
The heavily promoted Nabucco pipeline project from the Caspian region will receive a contribution of 200 million euros towards its 7.9 billion euro costs, while the ITGI link between Italy and Greece gets 100 million.
"This 200 million is not enough to make a difference for Nabucco," said energy analyst Susanne Nies at French think-tank Ifri. "Their problem is still the same -- it's one of supply."
But there was also a 175 million euro contribution towards a lower-profile gas link between Spain and France that could have a big impact.
Spanish energy companies have been crying out for the connection, which would allow Algerian gas to flow into mainland Europe soon after the 8 billion cubic metre Medgaz pipeline starts pumping this summer.
In all, the European Commission said it would grant 1.39 billion euros for 31 gas pipeline projects and 910 million euros for 12 electricity interconnection projects.
"I see this as a turning point in Europe's energy strategy," energy commissioner Guenther Oettinger told reporters.
"Europe's energy and climate objectives require large and risky infrastructure investments," he added. "In the present economic situation, the risk is that businesses would have preferred to postpone such investments."
The plan to subsidise hundreds of kilometres of gas pipelines and power cables was part of a 4 billion euro package aimed at helping the bloc's member states to assist each other during energy crises.
One billion was already announced in December for pioneering technology to trap and bury carbon emissions from power stations, and 565 million was earmarked for offshore windfarms.
Energy security has topped the EU agenda since Russian armour came worryingly close to pipelines during its 2008 invasion of Georgia.
European nerves were further tested when supplies of Russian gas were cut for three weeks during a pricing dispute between Moscow and Kiev last January.
"Were there to be a gas crisis as in January 2009, which particularly affected Bulgaria, neighbouring countries should be able to give assistance," said Oettinger. "To do that, they need the appropriate pipelines." *
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