Gas transmission international framework
Global challenges to the energy sector
The demand for energy, more precisely for oil and gas, is constantly growing at world level.
The share of the energy primary resources is estimated to exceed 40% in 2030.
The European Union Energy Policy
The European Commission, by means of the New European Union Energy Policy drawn up in 2007, deems that a joint energy policy, based on energy security, sustainable development and competition, is absolutely necessary for the European Union.
Therefore, Directive 2003/55/EC provides that the security of supply is a public service obligation. As regards the member states, the Directive ensures the necessary conditions for the fulfillment of such objective based on a transparent and nondiscriminatory treatment for all consumers.
To this effect, it is compulsory to ensure a competitive framework for the domestic gas markets by investments mainly in infrastructure (production, storage, transmission and distribution) given the fact that the European dependency on import sources shall increase from 50%, as it is nowadays, to 80% in the following 25 years. Europe may access gas reserves to a great extent, based on the proper related investments, as illustrated in Figure 1.
The remarkable potential offered by the Caspian and Middle East gas sources requires significant investments and an appropriate geo-political climate.
The Nabucco Project, meant to connect the Caspian and Middle East production regions to the European Union consumption areas, is a great opportunity in terms of gas transmission and transit giving a considerable advantage in respect of the diversification of the supply sources and the increase in the safety of supply to Europe.
The European Commission’s conclusions in relation to such circumstances, as mentioned in the Green Paper issued in 2006, illustrate that, in order to boost the security of supply at European level, it is necessary to meet the following requirements:
- Completion of the development process of a single European market functioning based on a single European network code
- Existence of a single European regulator
- Creation of a regulatory framework meant to support and foster investments
- Promotion of competition.
It is worth underlining that in the above-mentioned context, the South-Eastern Europe holds a geographic position which turns it into a crucial transit area between the gas producing countries and the Central and Western European consuming markets. To this effect, it is prerequisite to ensure a harmonized regulatory framework fostering investments in the region, chiefly in relation to the regional transmission projects. Therefore, the South-Eastern European Energy Community was established based on the Treaty signed in October 2005 by the European Union, on one hand and a group of nine countries, including Romania, on the other hand. The goal of such energy community is to extend the acquis communautaire in the region, to ensure a regulatory framework and sole market mechanisms for the entire region in order to eventually reach the ultimate objective, i.e. the creation of an integrated energy market.
So as to complete the European gas market background, it is necessary to focus on the role of the Russian Federation, respectively of Gazprom, as the main producer and exporter. The Russian Federation is expected to make efforts in order to maintain and strengthen such dominant position, primarily by its involvement in various projects meant to create new Russian gas transmission corridors to the European market. Therefore, the European Union should find the best means of co-operation with the Russian energy giant in order for the latter to perceive the European need for the diversification of its supply sources and increase in its security of supply as an opportunity and not as a threat to such leading role it currently plays on the European energy market.
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