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Bypassing Russia: Nabucco project and its implications for the European gas security

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  • Erdogdu, Erkan

Abstract

Restrictions on CO2 emissions, the nuclear phase-out announced by some member states, high emissions from coal-fired power plants, and barriers to rapid development of renewable generation are factors that make the European Union (EU) highly dependent on natural gas. With three non-EU countries (Russia, Algeria and Norway) currently supplying more than half the gas consumed within the EU and with projections pointing out that by 2030 internal sources will only be able to meet 25% of demand, the EU desperately looks for means to secure new sources of gas supply. In this context, the Nabucco pipeline is planned to deliver gas from Caspian and Middle East regions to the EU market. It runs across Turkey and then through Bulgaria, Romania and Hungary before connecting with a major gas hub in Austria. On paper, Nabucco project makes perfect sense, offering a new export route to the EU markets for Caspian gas producers (Azerbaijan, Turkmenistan and Kazakhstan) as well as Iran and, in time, Iraq. The project is backed by the EU and strongly supported by the United States. Perhaps most importantly, Nabucco would completely bypass Russia. This paper addresses issues surrounding Nabucco project and their implications for the European gas security.

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  • Erdogdu, Erkan, 2010. "Bypassing Russia: Nabucco project and its implications for the European gas security," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2936-2945, December.
    • Handle: RePEc:eee:rensus:v:14:y:2010:i:9:p:2936-2945
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    References listed on IDEAS

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    1. Finon, Dominique & Locatelli, Catherine, 2008. "Russian and European gas interdependence: Could contractual trade channel geopolitics?," Energy Policy, Elsevier, vol. 36(1), pages 423-442, January.
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    2. Dastan, Seyit Ali, 2018. "Negotiation of a cross-border natural gas pipeline: An analytical contribution to the discussions on Turkish Stream," Energy Policy, Elsevier, vol. 120(C), pages 749-760.
    3. Mingqi Zhang & Meirong Su & Weiwei Lu & Chunhua Su, 2015. "An Assessment of the Security of China’s Natural Gas Supply System Using Two Network Models," Energies, MDPI, vol. 8(12), pages 1-16, December.
    4. Lu, Weiwei & Su, Meirong & Fath, Brian D. & Zhang, Mingqi & Hao, Yan, 2016. "A systematic method of evaluation of the Chinese natural gas supply security," Applied Energy, Elsevier, vol. 165(C), pages 858-867.
    5. Keqiang Guo & Baosheng Zhang & Kjell Aleklett & Mikael Höök, 2016. "Production Patterns of Eagle Ford Shale Gas: Decline Curve Analysis Using 1084 Wells," Sustainability, MDPI, vol. 8(10), pages 1-13, September.
    6. Berk, Istemi & Schulte, Simon, 2017. "Turkey's Role in Natural Gas - Becoming a Transit Country?," EWI Working Papers 2017-1, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), revised 27 Jan 2017.
    7. Ozturk, Murat & Yuksel, Yunus Emre & Ozek, Nuri, 2011. "A Bridge between East and West: Turkey's natural gas policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4286-4294.
    8. Sanchez Martin, Miguel Eduardo & Escribano Frances, Gonzalo & de Arce Borda, Rafael, 2014. "How regional integration and transnational energy networks have boosted FDI in Turkey (and may cease to do so): a case study: how geo-political alliances and regional networks matter," Policy Research Working Paper Series 6970, The World Bank.

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    More about this item

    Keywords

    European natural gas security Nabucco project Energy policy;

    JEL classification:

    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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