Summary
European energy supply diversification policy is in contrast between the EU directives and German energy policy decision. Germany and Russia is very much integrated in both upstream and downstream sectors.
Analysis
Ms. Beat’s serial on the story of gas has been a thorough review of matters related to gas and gas trades of Russia and its Gazprom. As a result of its persistent policy, Gazprom has become the majority gas supplier to Turkey and Germany is a fact that needs further elaboration.
The discussion on European energy security and the diversification of suppliers dominate the EU Energy Commissioner’s agenda. Recent Nabucco inter-governmental agreement was hailed by the Commissioner as giving equal access to the sellers and the buyers with governments agreeing on cooperation for fair cross-border pipelines.
Turkey is receiving majority of its gas supplies from Russia, providing permission to use its economic zone in Black Sea for the Russian South Stream gas pipeline access, executing agreements to carry Russian oil through Samsun-Ceyhan oil pipeline and is in discussion for a Russian-Turkish Refinery in the downstream sector. Other downstream opportunities in the gas sector may also become possible, for example the Baskent Dogal Gaz Distribution Company.
Germany’s integration with the Russian gas is however a little different and it is based on sharing of upstream and downstream assets. The integration dates back to early 1990’s and was cemented with several partnerships. Notable ones are partnerships of German companies Wintershall and E.ON in the Yuzhno Russkoye Yamal fields, the North Stream Gas Pipeline, WinGas, etc.
In conclusion, national interest appears to justify the German energy means, despite the common EU directives and is therefore should be taken into consideration in shaping the Turkish energy policy, as well.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
