The EU authorities will have access to contracts for the supply of Russian gas to Europe, which until 2035 to double gas imports
Europe until 2035, almost double the may increase gas imports, and a significant portion of this growth will have on Russia. According to the US Department of energy, in the next two decades, European countries will not be able to do without Russian gas, despite a diversified energy supplies.
By 2040, oil production in Russia will increase by nearly 485 thousand barrels per day. As stated in an interview with Business FM , the head of the Ministry of energy Alexander Novak, the share of Russian gas in the total volume imported by Europe is 25 to 30% depending on temperature. “Now we have more supply than last year, because the cold winter was depleted reserves of underground gas storages in Europe, and is now filling. In the future we see more competition in this market… Will increase the import of gas to Europe. Despite the fact that Europe is actively engaged in renewable energy, however, gas is low-carbon raw materials, cheap enough, efficient to generate electricity. And it allows you to cover peak demand when everybody turns their device consumption – industrial enterprises and the population”, – said Novak.
According to him, in the period to 2035 estimate of the supply of Russian gas to the EU account for 70 to 100 billion cubic meters. Own production in Europe is declining, and in the long term this reduction will be at 50 billion cubic meters. “Therefore, the additional market in Europe – in the run up to 2035 is about 100 to 150 billion cubic meters of gas”, – said the Minister of energy of Russia, noting that today Europe consumes about 450 billion, of which Russia accounts for about 200 billion cubic meters of gas.
In the first quarter of 2017, the share of Russia in total gas imports to the EU amounted to 41% (in the second place Norway with 35%). In connection with such a huge commodity dependence of Europe from Russia, the EU Council on Monday, October 9, passed a new law allowing the competent authorities of the European Union acquainted with these contracts on gas supplies to Europe.
The new rules are intended to strengthen the cooperation of EU countries in case of crises in the supply of natural gas, as well as to open access to the authorities of the Union to information on gas contracts, which can be important for security of gas supply in the EU, reports RIA “Novosti”.
The purpose of the new rules is to strengthen the EU’s energy security, reduce its dependence on third parties in the supply of energy, to allow the EU faster and more efficient to deal with crises in the field of gas supply. The implementation of the legislation should also contribute to the improved functioning of the internal energy market of the EU. This bill is one of the elements of the Energy Union in the EU. Before it was adopted the law on reconciliation with the European Commission of the draft intergovernmental agreement of the EU for the purchase of gas from third countries.
Received documents discussed in 2015 and is one of the key elements of the emerging EU Energy Union aimed at protecting the interests of the EU to external energy exporters, guaranteeing them equal opportunities in access to energy, development of linkages for the transfer of energy within the region, the extension of the source.
Based on the text of the regulation, the authorities of the countries of the European Union will be able in certain cases to request from companies operating in the gas sector, information about their contracts for the purchase of natural gas. This will be done to assess the situation with gas supply contract in EU countries.
To the competent authorities of the EU and the European Commission could assess the situation with security of gas supply at national, regional and Union levels, they will be able to request companies working in the field of natural gas, certain details are already concluded gas supply contracts with “cross-border dimension” and lasting more than one year.
These components include in particular the term of the contract, the annual gas supply volumes, delivery points, minimum daily and monthly volumes of gas, the conditions for the suspension of gas supplies, as well as information about whether in this contract or contracts with the same supplier for over 28% of annual gas consumption in the country.
To assess the security situation of the gas supply authorities of the EU countries, the company will immediately inform them of newly concluded or renewed contracts for the supply of gas, the term of which exceeds one year and which, individually or together with other contracts with the same supplier accounts for 28% or more of annual gas consumption in the relevant EU country.
Within 12 months after the entry of the regulation into force, the gas company must notify the authorities about all existing contracts which satisfy these conditions.
Obligations to notify authorities apply to all commercial agreements that are relevant to the execution of the contract on gas supplies. Such contracts can be associated with infrastructure, gas storage and other aspects that are important for security of gas supply.
Notification obligation does not concern information about the prices of natural gas and on changes in contracts, referring only to prices.
It is reported that in certain cases the authorities of the EU countries or the European Commission may request a company “to submit the contract, except for pricing information, to assess its impact on the security of gas supplies”.
All contracts or contract information obtained in the framework of the new regulation, “must remain confidential,” the document says.
The TASS news Agency said that four main principles of the new law.
First, it increased monitoring on the part of the European Commission (EC) of the provisions of the contracts of EU member States on gas supplies from non-EU countries. This provision shall, in particular, to give a formal justification of the requirement of the EC to the EU to grant it a mandate to negotiate with Russia on “to Northern stream – 2″.
Second, member countries of the EU must accept a legal obligation to bring its legislation into conformity with the requirements of the future Energy Union and decision of the European Commission legal control over the use of these national regulations.
Thirdly, the new package includes the requirement for EU countries to strengthen transboundary cooperation, including the construction of radial gas pipelines to pump gas in case of crisis situations between EU countries. In addition, all the countries of the community are divided into “the group’s energy risks,” and within each group, they are required to prepare and submit to the European Commission’s action plans in case of gas crisis.
Fourthly, it is about creating a pan-European mechanism of energoaliance, or practice emergency exchange of gas between EU countries, which will be applied in a mandatory manner in case of an energy crisis the European level.
The idea of Energy Union is to create a pan-European cartel of gas consumers, which is sometimes called the “gas Antiope” in which European consumers will work together to determine reasonable prices for the purchase of gas in Europe. However, in addition, a new package of regulations of the European gas sector is another step to strengthen the powers of Brussels and the transfer of the European Commission of a single particle of the sovereignty of EU member States, this time in the sphere of control of national gas markets.