The European Commission will begin drafting directives in September that could limit investments by companies of third countries that limit investment in their energy or energy infrastructure.
The demands that Gazprom faces were demonstrated on Algeria yesterday as a new agreement on conditions on gas supplies was signed with the state company Sonatrach.
In September 2007, the European Commission will begin making corrections to European legislation to require that third countries provide mutual access to their energy markets. That is required by a resolution of the European Parliament published yesterday approving the reports of its committee on industry and the development of energy headed by Alejo Vidal-Quadras.
The demands that Gazprom faces were demonstrated on Algeria yesterday as a new agreement on conditions on gas supplies was signed with the state company Sonatrach.
In September 2007, the European Commission will begin making corrections to European legislation to require that third countries provide mutual access to their energy markets. That is required by a resolution of the European Parliament published yesterday approving the reports of its committee on industry and the development of energy headed by Alejo Vidal-Quadras.
Europe Expects the Same in Return from Gazprom
The report contains European Parliament recommendations to the European Commission and authorities in EU countries on the continuation of liberalization of the electricity market in the EU.
Previous attempts to liberalize the market, including an attack on long-term contracts for natural gas supplies, liberalization of the gas pipeline market and requirements for the splitting up of the business of such energy companies as E.ON, RWE and Gas de France, have been made by the European Commission itself, but they were rejected at a meeting of EU country energy minister in April of this year. Now the EC has the support of the European Parliament.
The resolution supporting Vidal-Quadras's report is recommendatory in nature. It declares support for a package of EC initiatives for further liberalizing the energy market that will be presented in Brussels in September.
The report contains two important pieces of news for Gazprom. The European Parliament officially supports the EU's preservation of the system of long-term contracts for gas supplies and acknowledges their role in creating the investment climate. In addition, it has given voice to the principle of mutual access for EU and third countries' investment in energy infrastructure. Those who do not follow the principle will be excluded from acquiring energy facilities in the EU. The principle is not spelled out in the text of the resolution and is indicated by rather soft language in an addendum to it: mutual access means the absence of direct limits on production of natural gas by EU companies in countries that want access to European energy assets. There are none in Russia.
In a report to the European Parliament on June 10, Vidal-Quadras presented the problem differently, saying that companies that produce natural gas beyond the borders of the EU cannot always be guaranteed that their product will be delivered to the EU because of the specifications of national legislation beyond Europe. The principle of mutuality may affect Gazprom. Russian legislation on the export monopoly on natural gas could formally be considered a violation of that principle, since it does not guarantee Gazprom independent enterprises with European involvement free export of gas to the EU.
It is unknown so far what the principle of mutuality and the limitations on the EU gas market will look like in the EC directives. The language of the report allows for very wide interpretation of them.
Gazprom got a partial look at rules that suit Europe when the EU signed an agreement with Algeria on gas supplies to Europe by the state Sonatrach. It cancels gas supplies by pipeline to certain territories in Europe (usually specific countries) and so-called profit-sharing schemes that allow Sonatrach to receive share of the distributor's profit from the sale of its gas outside the country. Gazprom wants the right to supply gas to individual EU countries with limitations on resale .
Previous attempts to liberalize the market, including an attack on long-term contracts for natural gas supplies, liberalization of the gas pipeline market and requirements for the splitting up of the business of such energy companies as E.ON, RWE and Gas de France, have been made by the European Commission itself, but they were rejected at a meeting of EU country energy minister in April of this year. Now the EC has the support of the European Parliament.
The resolution supporting Vidal-Quadras's report is recommendatory in nature. It declares support for a package of EC initiatives for further liberalizing the energy market that will be presented in Brussels in September.
The report contains two important pieces of news for Gazprom. The European Parliament officially supports the EU's preservation of the system of long-term contracts for gas supplies and acknowledges their role in creating the investment climate. In addition, it has given voice to the principle of mutual access for EU and third countries' investment in energy infrastructure. Those who do not follow the principle will be excluded from acquiring energy facilities in the EU. The principle is not spelled out in the text of the resolution and is indicated by rather soft language in an addendum to it: mutual access means the absence of direct limits on production of natural gas by EU companies in countries that want access to European energy assets. There are none in Russia.In a report to the European Parliament on June 10, Vidal-Quadras presented the problem differently, saying that companies that produce natural gas beyond the borders of the EU cannot always be guaranteed that their product will be delivered to the EU because of the specifications of national legislation beyond Europe. The principle of mutuality may affect Gazprom. Russian legislation on the export monopoly on natural gas could formally be considered a violation of that principle, since it does not guarantee Gazprom independent enterprises with European involvement free export of gas to the EU.
It is unknown so far what the principle of mutuality and the limitations on the EU gas market will look like in the EC directives. The language of the report allows for very wide interpretation of them.
Gazprom got a partial look at rules that suit Europe when the EU signed an agreement with Algeria on gas supplies to Europe by the state Sonatrach. It cancels gas supplies by pipeline to certain territories in Europe (usually specific countries) and so-called profit-sharing schemes that allow Sonatrach to receive share of the distributor's profit from the sale of its gas outside the country. Gazprom wants the right to supply gas to individual EU countries with limitations on resale .
Blogalaxia Tags: energia,Gazprom,Europa
