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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Bulgaria has warned the European Commission (E.C.) that it is facing an energy 'catastrophe' following the collapse of the South Stream gas pipeline project.
Bulgarian Prime Minister, Boyko Borissov, said that the loss of the pipeline due to Russia dropping the project coupled with fears that the overhaul of two nuclear reactors at the Kozloduy nuclear power station could be delayed by Russian firms means the country is facing a potential catastrophe.
Prime Minister Borissov met the Commision's Vice-President for Energy Union, Maros efčovič, and the Commissioner for Climate Action and Energy, Miguel Arias Cañete before they left for Russia to discuss energy security. Borissov wants the E.C. to help reignite the South Stream project or push for building a gas hub near Varna on the Black Sea which can be reached by a Russian pipeline. This would make Bulgaria a hub for gas supplies in Central and Western Europe. efčovič confirmed after the meeting that the first gathering of the High Level Group should take place in the Bulgarian capital, Sofia, where it will look at the energy situation in the region and whether the situation can be improved by the creation of a gas hub in Bulgaria.
"There was agreement on the necessity to increase integration of the region and most importantly, provide real diversification of gas supplies to the region and notably Bulgaria," the E.C. stated. "This requires rapid concrete actions and to revisit and reinforce cost-effective regional solutions based on regional cooperation and solidarity. Prime Minister Borissov introduced the idea to turning Bulgaria into a common gas distribution centre for E.U. Member States in the region. Such a gas hub could supply Central and Western Europe as well as countries from the European Energy Community. Vice-President efčovič expressed his strong support for the creation of gas hubs which can play an important role in developing regional gas markets."
Russia's President, Vladimir Putin, cancelled the massive South Stream project in December blaming Bulgarian reluctance as well as European Union (E.U.) pressure. The pipeline would have bypassed Ukraine, running under the Black Sea to bring gas into Europe via Bulgaria - potentially meeting around 20% of E.U. gas demand. For additional information, see December 3, 2014, article - Russia Scraps South Stream Natural Gas Pipeline, Chooses New Route to Turkey.
Units 5 and 6 at Kozloduy are due to be overhauled by Russian firms Energoatom Concern OJSC (Moscow) and Rosatom (Moscow, Russia) alongside French firm Electricite de France (EDF) (Paris, France). They supply around one-third of the country's electricity. Units 1 to 4 were shut down as part of the conditions for Bulgaria's joining the E.U. They are fears that delays to the works at Kozloduy will lead to an energy disaster.
"I'm confident in the security of Units 5 and 6, but the issue is that their rehabilitation could cost too much, and last too long," Prime Minister Borissov told media. "We hope this will not become a pawn of E.U.-Russia relations in this difficult state of their relations. Stopping one of the reactors is a catastrophe for Bulgaria, its economy and its citizens won't be able to pay the bills, as the remaining electricity that it produces is way too expensive."
Electricity is a very contentious issue in Bulgaria. High electricity prices alongside widespread public protests over corruption and energy monopolies toppled the Bulgarian government in 2013. For additional information, see February 26, 2013, article - Energy Crisis Topples Bulgarian Government.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
Bulgarian Prime Minister, Boyko Borissov, said that the loss of the pipeline due to Russia dropping the project coupled with fears that the overhaul of two nuclear reactors at the Kozloduy nuclear power station could be delayed by Russian firms means the country is facing a potential catastrophe.
Prime Minister Borissov met the Commision's Vice-President for Energy Union, Maros efčovič, and the Commissioner for Climate Action and Energy, Miguel Arias Cañete before they left for Russia to discuss energy security. Borissov wants the E.C. to help reignite the South Stream project or push for building a gas hub near Varna on the Black Sea which can be reached by a Russian pipeline. This would make Bulgaria a hub for gas supplies in Central and Western Europe. efčovič confirmed after the meeting that the first gathering of the High Level Group should take place in the Bulgarian capital, Sofia, where it will look at the energy situation in the region and whether the situation can be improved by the creation of a gas hub in Bulgaria.
"There was agreement on the necessity to increase integration of the region and most importantly, provide real diversification of gas supplies to the region and notably Bulgaria," the E.C. stated. "This requires rapid concrete actions and to revisit and reinforce cost-effective regional solutions based on regional cooperation and solidarity. Prime Minister Borissov introduced the idea to turning Bulgaria into a common gas distribution centre for E.U. Member States in the region. Such a gas hub could supply Central and Western Europe as well as countries from the European Energy Community. Vice-President efčovič expressed his strong support for the creation of gas hubs which can play an important role in developing regional gas markets."
Russia's President, Vladimir Putin, cancelled the massive South Stream project in December blaming Bulgarian reluctance as well as European Union (E.U.) pressure. The pipeline would have bypassed Ukraine, running under the Black Sea to bring gas into Europe via Bulgaria - potentially meeting around 20% of E.U. gas demand. For additional information, see December 3, 2014, article - Russia Scraps South Stream Natural Gas Pipeline, Chooses New Route to Turkey.
Units 5 and 6 at Kozloduy are due to be overhauled by Russian firms Energoatom Concern OJSC (Moscow) and Rosatom (Moscow, Russia) alongside French firm Electricite de France (EDF) (Paris, France). They supply around one-third of the country's electricity. Units 1 to 4 were shut down as part of the conditions for Bulgaria's joining the E.U. They are fears that delays to the works at Kozloduy will lead to an energy disaster.
"I'm confident in the security of Units 5 and 6, but the issue is that their rehabilitation could cost too much, and last too long," Prime Minister Borissov told media. "We hope this will not become a pawn of E.U.-Russia relations in this difficult state of their relations. Stopping one of the reactors is a catastrophe for Bulgaria, its economy and its citizens won't be able to pay the bills, as the remaining electricity that it produces is way too expensive."
Electricity is a very contentious issue in Bulgaria. High electricity prices alongside widespread public protests over corruption and energy monopolies toppled the Bulgarian government in 2013. For additional information, see February 26, 2013, article - Energy Crisis Topples Bulgarian Government.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
