European countries are losing out to China in their quest to source natural gas from the Central Asian states.Moving away from dependence on Russia and Middle East hydrocarbons was a key energy objective of European countries in the 1990s, and the oil and natural gas resources along the Caspian Sea was seen as a vital alternative.
Instead, European oil dependence on Russia and the Middle East has grown from 75% in 2000 to 84% by 2010. In addition, EU reliance on gas imports has also risen from 49% to 62% during the period.
EU countries such as Austria, Bulgaria, the Czech Republic, Estonia, Finland, Latvia, Lithuania, Poland, and Slovakia all depend on Russia for over 60% of their gas imports. In addition, countries aspiring to be EU members such as Moldova, Turkey, and Ukraine rely on Russia for over 65% of their imports.
Central Asia is estimated to hold more than 11% of world proven gas reserves, primarily in Turkmenistan, which has lagged behind Kazakhstan and Azerbaijan in attracting outside investments.
But while China has moved swiftly to source supplies from Central Asian states of Turkmenistan, Kazakhstan and Azerbaijan, Europe has been distracted by a crippling economic recession.
"European gas demand is likely to continue to struggle for the next five years, facing competition from cheaper coal and the promotion of renewables, while also suffering due to poor economic performance," said the Economist Intelligence Unit in a new report.
"As a result, the sense of urgency in opening up the Caspian region's gas supply to European customers--while still viewed as important--has somewhat dissipated. Nevertheless, it is still important for south-east European states, where dependence on gas from Russia is the strongest."
Source: Zawya
Instead, European oil dependence on Russia and the Middle East has grown from 75% in 2000 to 84% by 2010. In addition, EU reliance on gas imports has also risen from 49% to 62% during the period.
EU countries such as Austria, Bulgaria, the Czech Republic, Estonia, Finland, Latvia, Lithuania, Poland, and Slovakia all depend on Russia for over 60% of their gas imports. In addition, countries aspiring to be EU members such as Moldova, Turkey, and Ukraine rely on Russia for over 65% of their imports.
Central Asia is estimated to hold more than 11% of world proven gas reserves, primarily in Turkmenistan, which has lagged behind Kazakhstan and Azerbaijan in attracting outside investments.
But while China has moved swiftly to source supplies from Central Asian states of Turkmenistan, Kazakhstan and Azerbaijan, Europe has been distracted by a crippling economic recession.
"European gas demand is likely to continue to struggle for the next five years, facing competition from cheaper coal and the promotion of renewables, while also suffering due to poor economic performance," said the Economist Intelligence Unit in a new report.
"As a result, the sense of urgency in opening up the Caspian region's gas supply to European customers--while still viewed as important--has somewhat dissipated. Nevertheless, it is still important for south-east European states, where dependence on gas from Russia is the strongest."
Source: Zawya
