European Union Energy Policy

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1: European Union Energy Policy

2: European Union Energy Policy: Topic 1. Main and additional priorities of the European Union energy policy Topic 2. Fuel and energy balance of the EU Topic 3. Liberalization of EU gas and energy markets Topic 4. EU energy diplomacy and external actions Topic 5. The EU-Russia energy dialog

3: Topic 1. Main and additional priorities of the European Union energy policy Topic 1. Main and additional priorities of the European Union energy policy Introduction Milestones of EU energy policy Evolution of European energy policy Legislation

4: Energy is the irreplaceable part of almost every aspect of modern life from industry to transportation, heating and electricity, it is at the heart of human development and economic growth.

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7: The EUs energy dependence (import dependence) The EUs energy dependence (import dependence) Energy is the significant item on the agenda of European decision makers

8: The issue gets further complicated with the inclusion of worries about global warming, hazardous effects of certain energy types on health and environmental damages due to energy production, transportation and consumption, which overall require not only secure access to energy but also access to clean and efficient energy. The issue gets further complicated with the inclusion of worries about global warming, hazardous effects of certain energy types on health and environmental damages due to energy production, transportation and consumption, which overall require not only secure access to energy but also access to clean and efficient energy.

9: With these challenges on the background, until recently, climate change and energy efficiency had started to outweigh the agenda of internal and international efforts of the European Union concerning the creation of an energy policy. With these challenges on the background, until recently, climate change and energy efficiency had started to outweigh the agenda of internal and international efforts of the European Union concerning the creation of an energy policy.

10: Although some of the policies are still up to the individual choices of each Member State in line with their national preferences, global interdependence requires energy policy to offer a European dimension. Although some of the policies are still up to the individual choices of each Member State in line with their national preferences, global interdependence requires energy policy to offer a European dimension.

11: The milestones of EU energy policy: The milestones of EU energy policy: SUSTAINABILITY COMPETITIVENESS SECURITY OF SUPPLY

12: Major European documents constituting these milestones of European energy policy: Major European documents constituting these milestones of European energy policy: Green Paper of 2006 The Commissions communication An Energy Policy for Europe of 2007

13: SUSTAINABILITY linked to climate change 80 of greenhouse gas (GHG) emission in the Union is caused by energy related activities

14: COMPETITIVENESS aims at liberalization of energy market at the opening of energy markets for the benefit of EU citizens in line with latest energy technologies and investments in clean energy production

15: SECURITY OF SUPPLY Concerns for energy security and continuity of oil and gas flows to Europe can be considered as fundamental reasons for the creation of a common policy, since permanent supply of energy resources is part of national security understanding of Member States in the modern world circumstances

16: SECURITY OF SUPPLY SECURITY OF SUPPLY In 2030, it is expected that reliance on imports of gas and oil will rise to 84 and 93 as opposed to 57 and 82 in 2007, respectively.

17: SECURITY OF SUPPLY When such a level of dependency is combined with uncertainty about the willingness and capacity of oil and gas exporters to invest more and increase production to meet the increasing global demand, threat of supply disruptions emerge as one of the major challenges of the century.

18: DEVELOPMENT OF EU ENERGY POLICIES OVER TIME DEVELOPMENT OF EU ENERGY POLICIES OVER TIME

19: EVOLUTION OF EUROPEAN ENERGY UNION In the evolution of the EU itself, policies concerning energy and energy security remained at the back plan. Left to national discretion of Member States, decisions and policies concerning energy security was initially excluded from the EU level integration of European countries.

20: European energy policy initiated as a need to be capable of responding to international energy supply crises: the Suez crisis in 1956 the Six Day war between Egypt and Israel in 1967 Arab oil embargo in 1973 oil crisis following Iranian revolution in 1979

21: International Energy Supply Crises two major concerns: 1). political instability in producer countries and regional tensions will lead to a disruption in oil supply 2). the threat that exporter countries can purposefully use oil and natural gas as a weapon in their foreign relations

22: THE RESPONSE TO SUCH CRISES: THE RESPONSE TO SUCH CRISES: Oil Stock Directive, 1968 An amendment to the directive of 1968, accepted in 1972 - 72/425/EEC The establishment of International Energy Agency (IEA), 1973 Two more directives - 73/238/EEC and 77/706/EEC

23: The end of Cold War the end of ideological, political and economic divisions between eastern and western Europe in December 1991 political decision for EUROPEAN ENERGY CHARTER was signed.

24: EUROPEAN ENERGY CHARTER, 1991: EUROPEAN ENERGY CHARTER, 1991: competition free transit taxation transparency conditions on environment and sovereignty

25: Between 1990 and 2000 – THREE Green Papers on ENERGY Between 1990 and 2000 – THREE Green Papers on ENERGY BASELINES for a COMMON policy of the EU

26: 1994 – the Green Paper For A European Union Energy Policy 1994 – the Green Paper For A European Union Energy Policy to establish an internal market to increase the EUs role in the energy sector to harmonize national and community level of energy policies

27: 1996 – the Green Paper Energy for the Future: Renewable Sources of Energy incorporation of renewable energy sources into the future Community strategy on energy offered concrete strategies in the specific issue of renewable resources mobilization of national and Community instruments for the development of these resources in order to increase the percentage of renewable energy in the EUs energy mix

28: !!! 2000 – the Green Paper Towards a European Strategy for the Security of Energy Supply !!! 2000 – the Green Paper Towards a European Strategy for the Security of Energy Supply environmental concerns and repeated the interdependence between the Member States which required a Community dimension in the strategies dealing with energy related challenges the Unions increasing import dependence focused on the security of supply offered a detailed study concerning EUs energy mixture

29: 2005 – the Green Paper Green Paper on Energy Efficiency or Doing More with Less 2005 – the Green Paper Green Paper on Energy Efficiency or Doing More with Less The Commission suggested the establishment of energy efficiency Action Plan which would be a multi-level initiative combining national, regional, community and international levels. From buildings to tyres and clean vehicles, the paper examined several measures especially in industrial and transportation sectors, which could contribute to energy efficiency.

30: Russia – Ukraine crises (2006) Russia – Ukraine crises (2006) Member States understood the importance of community level actions in the sphere of energy policy

31: 2006 – the Green Paper A European Strategy for Sustainable, Competitive and Secure Energy competitiveness and the creation of an internal market (common European market) diversification of energy mix solidarity between member states sustainable development as a response to climate change innovation and technology for the increase of energy efficiency and diversity through renewable resources an integrated external policy

32: An Energy Policy for Europe introduced An Energy Policy for Europe introduced 20/20 Package (2007): reducing GHG emission by 20 improving energy efficiency by 20 achieving a 20 share of renewable energy a 10 share of biofuels by 2020

33: 2008 - An EU Energy Security and Solidarity Action Plan 2008 - An EU Energy Security and Solidarity Action Plan infrastructure needs the diversification of energy supplies external energy relations oil and gas stocks and crisis response mechanisms energy efficiency - making the best use of the EUs indigenous energy resources

34: The Kyoto Protocol The Kyoto Protocol (1997) is an international agreement which is intended to lower the greenhouse gas emissions of the industrialized world by 2012. Ideally, the end result of the Kyoto Protocol should be a reduction of these emissions to below 1990 levels. The agreement also addresses the issue of the developing world, which is rapidly industrializing and therefore producing a large volume of greenhouse gases.

35: The Energy Labelling Directive requires that appliances be labelled to show their power consumption in such a manner that it is possible to compare the efficiency with that of other makes and models. The intention is that consumers will prefer more energy efficient appliances over those with a higher consumption, resulting in less efficient products eventually being withdrawn or decommissioned. The Energy Labelling Directive requires that appliances be labelled to show their power consumption in such a manner that it is possible to compare the efficiency with that of other makes and models. The intention is that consumers will prefer more energy efficient appliances over those with a higher consumption, resulting in less efficient products eventually being withdrawn or decommissioned.

36: EUROPEAN EMISSIONS STANDARDS Each of the standards Euro 1 to Euro 6 (the latest) represent a total amount of exhaust gas emissions from a car. They measure four main groups of emission – carbon monoxide, hydrocarbons, nitrous oxide and particulate matter.

37: INTELLIGENT ENERGY EUROPE Intelligent Energy – Europe (IEE) offered a helping hand to organisations willing to improve energy sustainability. Launched in 2003 by the European Commission, the programme was part of a broad push to create an energy-intelligent future.

38: 2011 - A Roadmap for Moving to a Competitive, Low-Carbon Economy in 2050: 2011 - A Roadmap for Moving to a Competitive, Low-Carbon Economy in 2050: - reducing emissions by 80 relative to what they were in 1990 by 2050 this is what Europe needs to do in order to make sure that global warming does not go beyond two degrees centigrade (2C is usually seen as the upper temperature limit to avoid dangerous global warming).

39: The latest decisions in this matter have come from the European Council of October 2014. That is to aim at reducing carbon emissions by 40 by 2030. Now, we have the following objectives: for 2020, a reduction of 20 relative to 1990 we have an objective for 2050, a reduction by 80 and we have an intermediate objective for 2030, a reduction by 40.

40: Today the main goal is to establish ENERGY UNION! Today the main goal is to establish ENERGY UNION! In 2015, the Framework Strategy for Energy Union is launched as one of the European Commissions 10 Priorities.

41: Topic 2. Fuel and energy balance of the EU Topic 2. Fuel and energy balance of the EU

42: The energy balance remains subject to the national level, not common European A plurality of energy models

43: Oil: Malta, Cyprus, Nuclear energy: France, Sweden, Belgium Coal: Poland, the Czech Republic, Bulgaria Gas: the UK, the Netherlands, Italy

44: The energy available in the European Union comes from energy produced in the EU and from energy imported from third countries. In 2015, the EU produced around 46 of its own energy, while 54 was imported.

45: In 2015, the energy mix in the EU, meaning the range of energy sources available, was mainly made up by five different sources: In 2015, the energy mix in the EU, meaning the range of energy sources available, was mainly made up by five different sources:

46: WHAT DOES THE EU PRODUCE? Nuclear energy (29 of total EU energy production) was the largest contributing source to energy production in the EU in 2015. Renewable energy (27 ) was the second largest source, followed by solid fuels (19 ), natural gas (14 ) and crude oil (10 ).

47: However, the production of energy is very different from one Member State to another. The significance of nuclear energy is particularly high in France (83 of total national energy production), Belgium (65 ) and Slovakia (63 ). Renewable energy is the main source of energy produced in a number of Member States, with over 90 (of the energy produced within the country) in Malta, Latvia, Portugal, Cyprus and Lithuania. Solid fuels have the highest importance in Poland (80 ), Estonia (76 ) and Greece (68 ), while natural gas is the main source of energy produced in the Netherlands (82 ). Crude oil is the major source of energy produced in Denmark (49 ) and the United Kingdom (39 ).

48: What does the EU import? Oil.

49: What does the EU import? Coal.

50: What does the EU import? Gas.

51: How dependent is the EU from energy produced outside the EU? In the EU in 2015, the dependency rate was equal to 54 , which means that more than half of the EUs energy needs were met by net imports. This rate ranges from over 90 in Malta, Luxembourg and Cyprus, to below 20 in Estonia, Denmark and Romania. The dependency rate on energy imports has increased since 2000, when it was just 47 .

52: GAS. ADVANTAGES: GAS. ADVANTAGES: much lower emissions there is no need to maintain a reservoir for crude oil or storage for coal the efficiency of the transformation is high

53: The drawback of gas is the difficulty in transporting, high cost of transportation! The drawback of gas is the difficulty in transporting, high cost of transportation!

54: The largest importers of Russian gas in the European Union are Germany and Italy, accounting together for almost half of the EU gas imports from Russia. Other larger Russian gas importers (over 5 billion cubic meter per year) in the European Union are France, Hungary, Czech Republic, Poland, Austria and Slovakia. The largest importers of Russian gas in the European Union are Germany and Italy, accounting together for almost half of the EU gas imports from Russia. Other larger Russian gas importers (over 5 billion cubic meter per year) in the European Union are France, Hungary, Czech Republic, Poland, Austria and Slovakia.

55: According to the European Commission, the share of Russian natural gas in the member states domestic gas consumption in 2007 was the following: According to the European Commission, the share of Russian natural gas in the member states domestic gas consumption in 2007 was the following: Estonia 100 Finland 100 Latvia 100 Lithuania 100 Slovakia 98 Bulgaria 92 Czech Republic 77. 6 Greece 76 Hungary 60 Slovenia 52 Austria 49 Poland 48. 15 Croatia 37 Germany 36

56: Oil. Advantages. Oil. Advantages. Oil is a mix of hydrocarbons that are liquid under atmospheric conditions. Therefore, the fact that they are liquid allows for easier treatment of it, easier transportation, easier containment in tanks, and it is one of the greatest advantages of oil.

57: Based on data from OPEC at the beginning of 2013 the highest proved oil reserves oil deposits are in Based on data from OPEC at the beginning of 2013 the highest proved oil reserves oil deposits are in Venezuela (20 of global reserves), Saudi Arabia (18 of global reserves), Canada (13 of global reserves), and Iran (9).

58: European dependence on oil imports has grown from 76 in 2000 to over 88 in 2014. The EU spends some 215 bn on oil imports, over 5 times as much as gas imports (40 bn). Russia is the biggest supplier: dependence on Russia has grown from 22 in 2001 to 30 in 2015. European dependence on oil imports has grown from 76 in 2000 to over 88 in 2014. The EU spends some 215 bn on oil imports, over 5 times as much as gas imports (40 bn). Russia is the biggest supplier: dependence on Russia has grown from 22 in 2001 to 30 in 2015.

59: Oil companies

60: More than 40 of the oil was exported from Middle Eastern countries such as Algeria, Iraq, Libya, and Angola, former Soviet states such as Azerbaijan and Kazakhstan, and Nigeria and Angola in Africa. Russia itself was the source of 30 of Europes crude imports. More than 40 of the oil was exported from Middle Eastern countries such as Algeria, Iraq, Libya, and Angola, former Soviet states such as Azerbaijan and Kazakhstan, and Nigeria and Angola in Africa. Russia itself was the source of 30 of Europes crude imports. Just two of the top 10 oil suppliers to the EU were European – Shell and Statoil – whose combined crude market share was 12. In total 88 of Europes crude was imported.

61: Coal Countries exporting coal to EU are Russia, Colombia and Australia with shares of 32. 5 , 23. 2 and 15. 8 respectively 30. 4 , 23. 7 and 11. 5 in 2015. Imports shares from USA and South Africa slightly decreased respectively 14. 3 versus 17. 4 and 6. 1 versus 8. 1 .

62: Coal Coal, as the largest artificial contributor to carbon dioxide emissions, has been attacked for its detrimental effects on health. Coal has been linked to acid rain, smog pollution, respiratory diseases, mining accidents, reduced agricultural yields and climate change. Proponents of coal downplay these claims and instead advocate the low cost of using coal for energy. Many European countries, such as Italy, have turned to coal as natural gas and oil prices rose.

63: Nuclear energy potentially very cheap the lowest carbon emissions Nuclear power plants generate almost 30 of the electricity produced in the EU. There are 130 nuclear reactors in operation in 14 EU countries. Each EU country decides alone whether to include nuclear power in its energy mix or not.

64: Nuclear safety The EU promotes the highest safety standards for all types of civilian nuclear activity, including power generation, research, and medical use. In response to the 2011 Fukushima nuclear accident, a series of stress tests were carried out in 2011 and 2012 to measure the ability of EU nuclear installations to withstand natural disasters.

65: Radioactive waste and decommissioning Radioactive waste results from nuclear activities such as electricity generation, medicine, and research. The EUs Directive for the Management of Radioactive Waste and Spent Fuel sets out rules for safely disposing of used radioactive materials. The shutting down and decommissioning of a nuclear power plant at the end of its lifecycle is a long and expensive process. The Waste Directive also requires the creation of EU member states plans for financing the safe disposal of radioactive waste during decommissioning.

66: Nuclear energy France is the one country that has the most of its electricity from nuclear power. It has a dependency of approximately 75 of total electricity produced from nuclear power. But not many people realize that even Belgium, Slovakia and Hungary have levels of dependency on nuclear energy that are of the order of 50. And then we have Sweden that has a dependency of above 40.

67: Nuclear energy Russian nuclear reactors in the EU are in Bulgaria (2), Czech Republic (6), Finland (2), Hungary (4) and Slovakia (4, with two more being built). Hungary has an agreement for two more to be built, and Finland is planning one with Russian equity.

68: Renewable energy The use of renewable energy has many potential benefits, including a reduction in greenhouse gas emissions, the diversification of energy supplies and a reduced dependency on fossil fuel markets (in particular, oil and gas).

69: Renewable energy The share of renewable energy in energy consumption increased continuously between 2004 and 2015, from 8. 5 to 16. 7 , approaching the Europe 2020 target of 20 by 2020.

70: Renewable energy The share of renewable energy in the Member States was highest in Sweden (53. 9 of energy consumption) followed by Finland (39. 3 ) and Latvia (37. 6 ). This share was lowest in Luxembourg and Malta (both 5. 0 ), the Netherlands (5. 8 ) and Belgium (7. 9 ).

71: Renewable energy This positive development has been prompted by the legally binding (обладающий обязательным характером) targets for increasing the share of energy from renewable sources enacted by Directive 2009/28/EC on the promotion of the use of energy from renewable sources.

72: Renewable energy in the EU

73: Topic 3. Liberalization of EU gas and energy markets Topic 3. Liberalization of EU gas and energy markets

74: Liberalization Process: Legislation The liberalization process of the natural gas market is a result of the three Directives handed down by the European Commission in 1998 (98/30/EC), 2003 (2003/55/EC), and most recently in 2009 (2009/79/EC). The Directives aimed to create an internal market for natural gas, which would theoretically lower prices and increase energy security through introducing more competition.

75: Liberalization Process In all of the Directives, there are several components that comprise the bulk of the liberalization process, and they are: third party access, unbundling, contracts, and a regulatory authority. The EU emphasized these because they were seen as the primary barriers to a competitive market.

76: Liberalization Process The first portion of the liberalization process requires states to grant third parties to the gas transmission system and the gas storage system. Third-party access (TPA) is when a firm that does not own the actual pipeline or storage facility must have access to operate it, assuming certain conditions are met by both the owner and operator of the system.

77: Liberalization Process The 2003 Directive extended third-party access to gas storage facilities in addition to the transmission systems. Since natural gas can be stored, storage facilities play an important role; firms that are not a part of the production process can buy gas, store it, and then eventually sell it to customers at a later date, bringing another actor into the transaction between producing country and consuming country.

78: Liberalization . Unbundling. The next aspect of the Directives is the concept of unbundling. At its core, unbundling is separating vertically integrated companies, forcing firms either to be only involved in either production or transmission or distribution. Emphasizing unbundling is supposed to facilitate the entry of more actors in the market, thus making it more competitive.

79: Liberalization. Interruptible contracts The EU Directives is encouraging shorter and interruptible contracts, starting in 2003. The 2009 Directive went further and told Member States explicitly that they should encourage the development of interruptible supply contracts.

80: Liberalization. Regulatory authority The last major area of focus in liberalization reform is the creation of a regulatory authority. Chapter IX of Directive 2009/72/EC requires each Member State to designate a single National Regulatory Authority (NRA). Member States may designate other regulatory authorities for regions within the Member State, but there must be a senior representative at national level. Member States must ensure that the NRA is able to carry out its regulatory activities independently from government and from any other public or private entity.

81: Liberalization of EU gas market The Third Energy Package consists of two Directives and three Regulations: Directive 2009/72/EC concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC Directive 2009/73/EC concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC Regulation (EC) No 714/2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 Regulation (EC) No 715/2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005 Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators

82: Topic 4. EU energy diplomacy and external actions

83: Internal and external energy policies cannot be separated from each other due to their complimentary nature. Internal and external energy policies cannot be separated from each other due to their complimentary nature. High import dependency trends highlight that the Union is in urgent need for a common approach to external energy policy which would shape relations and partnerships of Europe with global energy actors being consumers, producers, transit countries or major companies

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91: Norway Norway differs from other energy suppliers to the Union because it is a member of European Economic Area. The legislation concerning EUs internal energy market and related policy arrangements about competition law, environmental regulations, consumer rights and new technologies are already implemented by Norway.

92: Norway Not only the EU needs Norway as a reliable oil and gas supplier but also Norway needs the EU since EU Members namely, Germany, United Kingdom, France, Belgium, the Netherlands account for the majority of Norways natural gas exports in 2008.

93: Norway Norway and the EU act together to further develop their partnership. The Commission as well emphasizes the potential of Norway in the maximization of Europes energy security and suggests the promotion of common exploration projects in the Norwegian continental shelf and the promotion of alternative energy production such as offshore wind in the North Sea

94: Africa Concerning EUs dialogue with Africa, energy is incorporated within the development and governance issues. Poverty reduction projects and improvement of energy delivery systems to rural areas attracts the Unions interests and to this end, initiatives and aid funds are offered. The example is the EU Initiative for Poverty Eradication and Sustainable Development launched in 2002

95: Africa In the region, the EU policy makers associate the Unions energy interests with broader political and security considerations. Still, due to high instability in the region, EUs efforts remain insufficient in the implementation of development projects. To illustrate despite being the fourth major natural gas supplier of the EU, Nigeria remained as the Africas most under-funded state since corruption and lack of transparency hindered investment efforts. Instead of rule of law, oil contracts and government positions were used as political means to buy off militants.

96: Africa Nevertheless, Africa, more specifically North Africa has a significant potential not only in hydrocarbons but also in renewable energy sources. Despite the inconvenient conditions for investments, secure extraction and transportation of resources, Algeria, Egypt, Libya and Nigeria outstand as important suppliers after Russia and Norway, especially in natural gas imports.

97: Middle East Middle East is the worlds important energy producing region and worlds richest proven oil and natural gas reserves belong to the region. Seeking ways to guarantee its energy security, EU aims to institutionalize its energy relations with the region, especially with the Persian Gulf countries some such as Iraq, Kuwait, Qatar, Saudi Arabia and United Arab Emirates being member of Organization of Petroleum Exporting Countries (OPEC).

98: Middle East Despite the Unions intense energy dialogues with Russia or Caspian region, Middle East remains as a critical player in energy policy especially due to its rich resources, geographical advantages and its potential to stabilize world market prices in line with its oil supply capacity.

99: Middle East Concerning the region, EUs effort to achieve international cooperation in energy is not limited to the dialogue with the Gulf Cooperation Council. The Euro-Mediterranean Energy Partnership (Euromed) is another platform for EU to pursue its goals of energy security and sustainability. The partnership consists of EU Member States and Mediterranean and Middle Eastern partners (Algeria, Egypt, Israel, Jordon, Lebanon, Morocco, Palestinian Authority, Syria, Tunisia and Turkey) and its origins date back to 1995 the Euro-Mediterranean Conference of Ministers of Foreign Affairs.

100: Caspian Region Caspian region refers to five Caspian littoral states namely, Azerbaijan, Iran, Kazakhstan, Turkmenistan and Russia. The critical point about the region is the legal status of the Caspian Sea. With the disintegration of the Soviet Union, the determination of official sea boundary between the states emerged as a question. No agreement has been reached between the littoral states concerning the debate on whether the subject matter is a lake or sea.

101: Caspian Region This identification is necessary because, if the Caspian is a sea, in line with the United Nations Convention on the Law of the Sea, bordering countries will be able to claim 12 miles from the shore as their territorial waters and beyond that a 200-mile exclusive economic zone and this will cause an uneven distribution of oil and natural gas resources in the basin.

102: Caspian Region Apart from the legal status of the potential reserves, the fact that Azerbaijan, Kazakhstan and Turkmenistan are landlocked states, the construction of oil and natural gas transit routes create a further challenge for the region.

103: Caspian Region The institutionalization of relations with the Caspian Region countries: the INOGATE, Interstate Oil and Gas Transport to Europe program Baku Initiative the Black Sea initiative

104: Caspian Region Energy outstands as the main item among the imports from the region. Nevertheless, mineral fuels imported from the region represent very small shares among total imports of EU from the world market. Azerbaijan, Turkmenistan, Kazakhstan and Iran correspond to only 2. 3, 0. 3, 3. 4 and 2. 8 of EUs total imports, respectively. Compared with the regions oil and gas reserves, these results indicate that the potential of these countries is not being efficiently used, yet.

105: Southern Gas Corridor The Southern Gas Corridor is an initiative of the European Commission for the natural gas supply from Caspian and Middle Eastern regions to Europe. The goals of the Southern Gas Corridor are to reduce Europes dependency on Russian gas and add diverse sources of energy supply. The route from Azerbaijan to Europe consists of the South Caucasus Pipeline, the Trans-Anatolian Pipeline, and the Trans-Adriatic Pipeline (under construction). The total investment of this route is estimated US billion. The main supply source would be the Shah Deniz gas field, located in the Caspian Sea.

106: Topic 4. The EU-Russia energy dialog

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