Analysis

Europe: Natural Gas Import Options Grow
The central facility of the Nord Stream Baltic Sea gas pipeline, where it reaches Western Europe. The Nord Stream pipeline runs through the Baltic Sea and was built to supply Europe with natural gas from Russia. (Sean Gallup/Getty Images)
December 7, 2012
| Energy
| Europe
Summary
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Tensions between the European Union and its natural gas importers are becoming increasingly visible as shown by a recent dispute between Italy and Algeria over a pipeline project. Underlying all of these difficulties is the changing commercial landscape for imported gas coming into the EU. The energy sector is slowly being transformed on the continent, and this is good news for Europeans, as LIGNET explains.
The Nabucco pipeline that will connect the EU via Turkey to natural gas in Central Asia, the Galsi pipeline that promises to do the same with gas from Algeria and Tunisia, a new supply of gas from Israel and Cyprus, increasing imports from gas rich Qatar and the development of Liquefied Natural Gas (LNG)—all will help increase the EU’s natural gas import options in the future. Russia’s current domination of this market will thus come under new pressure, which may eventually result in an erosion of the country’s market share.
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