US State Department: TAP to Provide More Opportunities for Europeans

The special envoy and coordinator of the US State Department for International Energy Amos Hochstein told Interfax, why his country wants to weaken Europe's dependence on Russian energy, about the Southern Gas Corridor project and what the diversification will give the world.

Right to Choose Without Monopolies

"We do not believe that any part of the world has to depend on a single supplier of any resources. Even among our immediate neighbors in South America, there are countries that are dependent on a single supplier of fuel, and we try to help them with diversification. As for Europe, we would like to see it continued to purchase energy from Russia, which is an important exporter to the Old World, but it cannot be the only supplier in the market because it does not benefit anyone. And in general, dependence at 100% on one partner is a hopeless idea both from an economic and commercial, as well as from the political point of view.

So we work with Europe to diversify it in order to bring competition and create infrastructure that would allow competing gas from different sources. I would like to give one example - Bulgaria and Serbia, for example, buy all their "blue fuel" from Russia, and we would like to see competition, which implies the presence not only of Russian gas but also gas from other sources. It is good that Caspian gas from Azerbaijan, which goes through the pipes to the Old World, will compete with Russia, but that is not enough. We think that it is necessary to benefit from new technologies and ensure that the liquefied natural gas (LNG) will also have access to the European market for the global competition with gas from Israel, Egypt, Qatar, Australia, the USA, and so on. I mean, I'm talking about the free market, the situation when the Russian gas is in competition with any other. If you buy 100% of gas from the same source, but at the same time have the opportunity to buy also from another source, it is good, but now a number of countries practically are in a desperate situation, with no choice - in this case, how can we discuss the price and supply conditions, if the Sword of Damocles of monopolist is hanging over you?" said a senior official.

Commerce without Politics

Asked why the US interferes with Gazprom in the project North Stream-2, the spokesman for the State Department disagreed with the fact that this idea is dictated by the needs of the market, as it already has the necessary infrastructure of gas supplies to Europe through Ukraine. In addition, the North Stream-1 is filled at not more than 70%. So the commercial benefits of building a new pipeline for $ 12 billion, with the current infrastructure and low gas prices, are highly questionable. A situation that 80%, if not more, of the Russian gas in Europe will focus only in Germany, rather than improve the infrastructure for the delivery of gas from Ukraine to Germany, has no meaning in terms of energy security, either in terms of economic security.

Another Way

When asked why the Americans support the Southern Corridor of "blue fuel" to Europe from Azerbaijan (in particular, the Trans-Anatolian gas pipeline - TANAP and the Trans Adriatic Pipeline - TAP), which do not pass through the territory of Ukraine either, therefore, their commercial appeal is questionable, Hochstein objected that the South Corridor allows to deliver gas, to which Europe has never had access. "Thus, with the advent of new gas from new sources competition will be created, and this is not only a new source, but also a completely different route of delivery. So this project is an important part of the diversification. And North Stream-2 sends the same gas to the same supplier, just not through Ukraine, but to Germany - and that's all it does - the Southern Corridor will supply gas from Azerbaijan, and may be in the future, also from Turkmenistan to Europe, that is, there are new popular energy sources. That's why I always say that the Trans-Anatolian gas pipeline, when it comes from Turkey to Greece, will become Trans Adriatic Pipeline. I would like to see also LNG terminals in Europe, which would feed the Trans Adriatic Pipeline to create competition with Caspian gas. I'm for the maximum amount of gas supply opportunities for competition and, accordingly, reasonable prices," he told the agency. --17D-