Competition for Central Asian energy: the EU’s Strategies

influence in Central Asia from becoming excessive.

- Further, controlling the energy resources in all regions of the former Soviet Union is a necessary condition for Moscow to carry out its geo-political control of those areas, which is seen as the only opportunity to redevelop Russian hegemony over the former Soviet Union by the authorities in Moscow.

In March 2010, during Russian Prime Minister Vladimir Putin visit to Central Asia, Kazakhstan committed to expanding their oil exports via Russian territory. Russia also agreed to provide technical assistance to Kazakhstan’s nuclear power program. ²⁴¹ In addition, an agreement was signed between Russia, Kazakhstan and Turkmenistan in which they plan jointly to construct a Caspian gas pipeline from Turkmenistan via Kazakhstan to the territory of Russia and export product to Europe. Moreover, a memorandum was signed for renovation and expansion of the western branch of the Central Asia–Center gas pipeline system,

with capacity due to be expanded to 90 bcm per year. In short, this amount to an expansion of the domain of the Russian transit gas pipeline system allowing Russia to maintain its

monopoly on export of Central Asian gas to the European market. ²⁴²

4.3.4 Competition for Central Asian energy: the EU’s Strategies

After the 2005 "color revolutions" trend in Central Asia, the EU began to improve its position in Central Asia via its foreign policy. The EU has launched the "Energy Strategy" and “The EU and Central Asia: Strategy for a New Partnership.” However, the EU is dependent on Russian oil, gas and coal supplies. In recent years, there’s gas dispute between Russia and Ukraine, and also Russia and Belarus due to the cost of natural gas transport, and those problems deepen the EU’s concerns in regard to (relying on) Russia. To reduce dependence on Russian energy resources, and enhance the diversification of ways of energy supply, so that

energy competition in Kazakhstan), unpublished thesis, Ching Yun University (Taoyuan: June 2010), pp. 54.]

241 Blagov, Sergei. “Medvedev, Nazarbaev fail to heal fault lines”, Asia Times Online, Apr 6, 2011, available at:

http://www.atimes.com/atimes/Central_Asia/MD06Ag01.html, (accessed: 20140315).

242 吳賢煜，「中國與俄羅斯在哈薩克斯坦之能源競逐」，清雲科技大學碩士論文 (桃園：2010 年 6 月)，

頁 80。[Wu, Hsienyu. Zhongguo Yu Eluosi Zai Hasakesitan Zhi Nengyuan Jingzhu (China and Russia’s energy competition in Kazakhstan), unpublished thesis, Ching Yun University (Taoyuan: June 2010), pp. 80.]

‧

they hope that Central Asian countries to gradually increase oil and gas exports to Europe in order to reduce EU countries’ dependence on Russia. With the support of the European Union, Nabucco Gas Pipeline International GmbH (NIC/ National Internship Consortium) was set up on 24 June 2004 to develop, construct and operate the Nabucco pipeline.

4.3.4.1 The EU’s initiatives in Central Asia after the Color Revolutions

For the EU countries, Central Asia has an important geo-strategic position. First of all, Central Asia has rich oil and natural gas resources. After the 2005 "color revolutions" occurred in Central Asia, the EU began to improve its position in Central Asia via its foreign policy. The EU launched the "Energy Strategy" and “The EU and Central Asia: Strategy for a New Partnership.” Those policies emphasize the important role of Central Asian energy security in regard to Europe's own energy security, and they systematically illustrate the exposition of the EU’s strategic objectives in Central Asia, their means and the direction of cooperation. ²⁴³

4.3.4.2 The Nabucco Gas Pipeline Project

The EU is dependent on Russian oil, gas and coal supplies. In recent years, there’s been a gas dispute between Russia and Ukraine, and also Russia and Belarus due to the cost of natural gas transport, and those problems have deepened the EU’s concerns in regard to its reliance upon Russia. Adding to the former concerns are the new complications arising from the ongoing Ukrainian Crisis. The EU hopes to reduce its dependence on Russian energy resources, and enhance its diversification of imports of energy supplies. The EU hopes to gradually increase its oil and gas exports to Europe from Central Asian countries in order to reduce their dependence on Russia. With the support of the European Union, the Nabucco Gas Pipeline International GmbH (NIC/ National Internship Consortium) was set up on the 24^th of

243 張鴻俊，「從地緣戰略論中國對中亞能源外交」，國立政治大學碩士論文 (台北：2010 年 6 月)，頁

30-43。[Chang, Hungchuen, Cong Diyuanzhanlue Lun Zhongguo Dui Zhongya Nengyuanwaijiao (Discussion of China’s energy diplomacy towards Central Asian countries, geostrategic study), unpublished thesis, National Chengchi University (Taipei: June 2010), pp. 30-43.]

‧

June 2004 to develop, construct and operate the Nabucco pipeline. ²⁴⁴

The relationship between the EU and Central Asia was strengthened further in 2007 when the "Strategy for a New Partnership with Central Asia" was passed by the European Council, thereby obtaining energy cooperation with Central Asian countries by strengthening the legal basis of that cooperation. Its real purpose is to weaken Russia's influence in Central Asia. ²⁴⁵ Moreover, the EU has announced that it will build the Nabucco natural gas pipeline which is slated to traverse Azerbaijan, Georgia, Turkey, Bulgaria, and Hungary. In 2009, the EU began promoting the "South Gas Corridor" project and in response to challenges from Western powers in Central Asia, Russia has also launched the Burgas - Alexandroupoli pipeline and the South Stream pipeline as a counter. ²⁴⁶

The Nabucco gas pipeline, with a length of 3,900 km, if successfully completed, will be able to transport 30 billion cubic meters of natural gas per year. Gas extracted from

Turkmenistan, Azerbaijan, etc. can be shipped through the Trans-Caspian gas pipeline and the BTC pipeline, followed by the Nabucco pipeline between Turkey,

Romania, Bulgaria, Hungary and Austria. The southern branch of the pipeline could include natural gas from Iraq, Iran and other Persian Gulf countries. ²⁴⁷

In November 2011, according to Reinhard Mitschek, managing director of Nabucco Gas Pipeline International GmbH, Nabucco would most probably need a third gas supplier after Azerbaijan and Turkmenistan to fill its capacity and he claimed that the project is

244 “Nabucco Gas Pipeline International GmbH (NIC)”, Gulf Oil and Gas, available:

http://www.gulfoilandgas.com/webpro1/prod1/suppliercat.asp?sid=10381, (accessed: 20140308).

245 Abdulhamidova, Nurangez. “The European Union-Central Asia: in the light of the New Strategy,” master’s thesis, Linkoping University, Jun, 2009, available at:

http://liu.diva-portal.org/smash/get/diva2:286608/FULLTEXT02.pdf, (accessed: 20140519).

246 “An EU Energy Security and Solidarity Action Plan,” Report published by the Commission of the European Communities, Brussels, Nov. 13, 2008, available at:

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0781:FIN:EN:PDF, (accessed: 20140519).

247 “EU gas pipeline project near collapse: Analysts,” The Peninsula, Feb 5, 2012, available at:

http://thepeninsulaqatar.com/business/business-news/182281/eu-gas-pipeline-project-near-collapse-analyst, (accessed: 20140520).

‧

gaining attention from companies operating in Iraq, thus Iraq is considered a potential gas exporter to Europe. ²⁴⁸

European Energy Commissioner Günther Oettinger wrote in a newspaper column on July 5^th, 2013 that the route planned for the Nabucco West pipeline project is not dead, and that there could still be an alternative gas route to Austria, which is still under discussion. ²⁴⁹