Gazprom loses gas monopoly as Southeast European market advances
As the new year starts, three events will have a long-term impact on Gazprom s business in Southeast Europe, affecting the whole EU market. Who will gain, who will lose out?
The TAP pipeline is the last section of the Southern Gas Corridor, Europe s major project for diversification of gas supplies
The gas market in southeast Europe was marked by three events at the beginning of the new year, all of them with far-reaching consequences. On January 1, Serbian President Aleksander Vucic celebrated his nation s gas supplies from Russia through a different route, notably via Bulgaria and the Balkan Stream pipeline, part of the Turkish Stream pipeline.
In the Western Balkans, where all EU hopefuls (bar Turkey) are located, the year ahead will be dominated by Europe’s quest for a vaccine and efforts to restart the economy in the wake of the coronavirus pandemic.
No significant breakthrough is expected in terms of the EU’s enlargement agenda this year. But the EU’s ability to assuage the region’s feelings of vaccine abandonment will be crucial for keeping the bloc’s credibility in the Western Balkans.
From Belgrade to Tirana, vaccinations and economic revival will be key to political progress. Unless both succeed, continued flight of skilled labour to the West is likely to open up space for governments with authoritarian appetites to manoeuvre and hold on to power. Depleted from the most economically active part of their populations, Western Balkan countries would be easy prey to populists.
7 January 2021 14:02 GMT Updated 7 January 2021 14:02 GMT in Moscow
Countries in southern Europe have seen a flurry of several key natural gas project start-ups earlier as demand for energy in the region continued to rise despite the anticipated impact of new Covid-19 shutdowns.
Serbian President Aleksandar Vucic recently inaugurated the country’s 403-kilometre pipeline extension of Gazprom’s TurkStream subsea gas pipeline from Russia to Turkey at Gospodjinci near Novy Sad.
The pipeline will take Russian gas, flowing from Bulgaria, and send it to local customers as well as transiting some to Hungary.
According to Serbian state gas company Srbijagas, the country plans to receive about 6 million cubic metres per day of Russian gas from Bulgaria in January.
Serbia now 100% dependent on Russian gas
05/01/2021
Voice of America (VOA) reports that, following the commissioning of the Balkan Stream gas pipeline, Serbia has increased its dependence on energy from Russia.
VOA reminds that on the first day of 2021, the Balkan Stream was put into operation in the village of Gospodjinci in Vojvodina, and that officials said at the opening that Serbia would provide another, more stable gas supply route, which no longer goes only through Ukraine.
According to the VOA, the Balkan Stream, which construction began through Serbia in March 2019, is part of the TurkStream gas pipeline, which transports Russian gas through Turkey, Bulgaria to Serbia and Hungary.
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The House of Representatives of US Congress (lower house) rejected a presidential veto on Monday. Thus, the provisions for the defense budget, which include the extension of sanctions against the Nord Stream-2 and Turkish Stream pipelines, enter into force. Both chambers, for the first time in Trump s presidency, have managed to override his veto.
Meanwhile, early on Friday morning, shortly after 5.00 am Bulgarian time, Serbian President Aleksandar Vučić officially opened the Balkan Stream pipeline in the area near Žablja. The pipeline continues to the Hungarian border. Vučić promised within 10-15 days to propose a significant reduction in the price of gas . I want to congratulate on the New Year all Serbian citizens. For us, this is a big and essential deal. the Balkan Stream guarantees us energy security and stability, which is very important for attracting investors , vučić said.