Gas infrastructure projects in a post-South Stream environment – is investing still attractive?

 

Diversification of supply (energy sources, suppliers and routes) is one of the key priorities of the Energy Union. At the same time, current political developments may have a severe impact on the European gas market, and in particular on its gas infrastructure: Gazprom cancelled the South Stream project some months ago and wants to build a “Turkish Stream” instead. The question of gas transit through Ukraine after 2019 remains open. How can the EU replace those volumes in an affordable and reliable manner? Is LNG the only solution for European citizens and companies, who expect access to stable and competitively priced energy at any given moment?

No matter where the gas comes from – Norway, Algeria, Russia, Middle East or the United States – via pipelines or LNG, the necessary infrastructure must also be in place inside the EU to bring the gas to where it is needed. How much do we still need to achieve to complete EU Internal Energy Market and get away with energy islands? Is Europe’s gas infrastructure (physically) ready for a diversification of supply? Where do we need interconnectors, and who is going to build and pay for them?

Constructing the infrastructure to deliver new sources of gas to the EU involves many partners, and is both complex and expensive. How can the Juncker’s investment package help in this context? Can a European Fund for Strategic Investments (EFSI) really trigger investments in infrastructure, or are there other preconditions necessary?

Following a short presentation by Heiko Meyer, Vice President Strategy and Portfolio Management at Wintershall, participants had the opportunity to discuss the questions raised above.

I was a pleasure to welcome our members for this lively discussion. 

 

Participation is open to all MEPs interested in energy issues. Please contact the EEF if you are an MEP and you wish to take part in our debates.

All EEF discussions are held under Chatham House Rule to provide anonymity to speakers and to encourage openness and sharing of information during the debate.

The EEF is a membership-driven organisation. We are pleased to welcome non-member companies eligible for membership to two of our events. After, we reserve the right to request membership for further attendance at events.