5th June 2015

EU getting ready for a gas-supply diplomatic offensive

The EU will launch a series of measures to assure reliable gas supply for the EU in the coming months. The EU Energy Commissioner Miguel Arias Canete joined forces with the High Representative for Foreign Affairs Federica Mogherini. A new strategic dialogue will be launched with Norway, as of recently the bloc´s prime gas supplier, and with Turkey – which is poised to become a crucial strategic partner in gas supply in the near future. The Southern Gas Corridor will place Turkey at a key location for the EU supply. The EU will also look for ways to engage Algeria more. Algeria has huge reservoirs of both conventional and non-conventional gas, but is chronically underinvested. Several of the reasons are on the Algerian side – which the Commission will try to tackle. Also, there are infrastructure links already existing, which are underused, or not used at all. The Commission will also build a comprehensive LNG and gas storage strategy in early 2016. LNG market will likely evolve strongly in the years to come. Large amounts from liquefied gas will start to arrive to Europe from Australia and, hopefully, from the US. This will have two effects – it will put pressure on LNG prices, which will likely become competitive with pipeline gas, and on even more resilient network will be needed. This will be addressed by the Commission in re-evaluating its support for the interconnectors, 14 of which are currently being realized, with dozens others waiting in line.

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Members of the American Chamber of Commerce in the Czech Republic