New gas pipeline boosts Europe’s bid to ease Russian supply

April 29, 2022

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ATHENS, Greece –

Mountainous and distant, the Greek-Bulgaria border as soon as fashioned the southern nook of the Iron Curtain. At this time, it is the place the European Union is redrawing the area’s power map to ease its heavy reliance on Russian pure gasoline.

A brand new pipeline — constructed in the course of the COVID-19 pandemic, examined and because of begin industrial operation in June — would make sure that giant volumes of gasoline movement between the 2 international locations in each instructions to generate electrical energy, gas trade and warmth houses.

The power hyperlink takes on higher significance following Moscow’s choice this week to chop off pure gasoline provides to Poland and Bulgaria over a requirement for funds in rubles stemming from Western sanctions over the struggle of Ukraine.

The 180-kilometre (110-mile) pipeline mission is the primary of a number of deliberate gasoline interconnectors that will give japanese European Union members and international locations hoping to affix the 27-nation bloc entry to the worldwide gasoline market.

Within the quick time period, it is Bulgaria’s backup.

The brand new pipeline connection, referred to as the Fuel Interconnector Greece-Bulgaria, will give the nation entry to ports in neighbouring Greece which can be importing liquefied pure gasoline, or LNG, and likewise will carry gasoline from Azerbaijan by way of a brand new pipeline system that ends in Italy.

It is one in every of many efforts as EU members scramble to edit their power mixes, with some reverting again to emissions-heavy coal whereas additionally planning expanded output from renewables.

Germany, the world’s largest purchaser of Russian power, is seeking to construct LNG import terminals that will take years. Italy, one other high Russian gasoline importer, has reached offers with Algeria, Azerbaijan, Angola and Congo for gasoline provides.

The European Union desires to cut back its dependence on Russian oil and gasoline by two-thirds this 12 months and to remove it fully over 5 years by way of different sources, the usage of wind and solar energy, and conservation.

Russia’s invasion of Ukraine is prone to speed up adjustments within the EU’s long-term technique because the bloc adapts to power that’s costlier but in addition extra built-in amongst member nations, said Simone Tagliapietra, an power knowledgeable on the Brussels-based assume tank Bruegel.

“It is a new world,” he said. “And on this new world, it is clear that Russia does not need to be a part of a world order as we consider it.”

Tagliapietra added: “The technique — significantly by Germany — over the past 50 years was all the time one in every of partaking with Russia on power. … However given what we’re seeing in Ukraine and given Russia’s view of worldwide relations, it isn’t the sort of nation with which we want to do enterprise.”

EU policymakers argue that whereas Jap European members are among the many most depending on Russian gasoline, the dimensions of their markets makes the issue manageable. Bulgaria imported 90% of its gasoline from Russia however solely consumes 3 billion cubic meters yearly — 30 instances lower than lead shopper Germany, in line with 2020 information from EU statistics company Eurostat.

The Greece-Bulgaria pipeline will complement the prevailing European community, a lot of which dates to the Soviet period, when Moscow sought badly wanted funds for its faltering economic system and Western suppliers to assist construct its pipelines.

The hyperlink will run between the northeastern Greek metropolis of Komotini and Stara Zagora, in central Bulgaria, and can give Bulgaria and neighbors with new grid connections entry to the increasing world gasoline market.

That features a reference to the newly constructed Trans Adriatic Pipeline, which carries gasoline from Azerbaijan, and suppliers of liquefied pure gasoline that arrives by ship, prone to embody Qatar, Algeria and the US.

As many as eight extra interconnectors may very well be inbuilt Jap Europe, reaching so far as Ukraine and Austria.

The 240 million-euro (US$250 million) pipeline will carry 3 billion cubic metrws of gasoline per 12 months, with an choice to be expanded to five billion. It acquired funding from Bulgaria, Greece and the EU, and has robust political help from Brussels and the US.

On the bottom, the mission confronted a number of holdups due to provide chain snags in the course of the COVID-19 pandemic.

Receiving specialised elements and shifting personnel after building bought underway in early 2020 quickly turned more and more tough, said Antonis Mitzalis, government director of Greek contractor AVAX, which oversaw the mission.

Building of the pipeline completed in early April, he said, whereas work and testing at two metering stations and software program set up are within the last phases.

“We had a sequence in thoughts. However the truth that some supplies didn’t arrive made us rework that sequence, typically with a price impact,” Mitzalis said.

Greek Prime Minister Kyriakos Mitsotakis missed a tour of the positioning final month after contracting COVID-19. He spoke Wednesday together with his Bulgarian counterpart, Kiril Petkov, to supply assurances of Greek help.

“Bulgaria and Greece will proceed to work collectively for power safety and diversification — of strategic significance for each international locations and the area,” Petkov later tweeted. “We each are assured for the profitable completion of the IGB on time.”

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