Caspian Report - Issue 06 - Winter 2014

variants of the project for 2, 5, and 8
bcm/y.
Russia’s South Stream project is not
and never has been part of the EU’s
SGC initiative, despite occasional
journalistic and even analytical
reference to it as part of the Southern
Corridor. In fact, South Stream
(announced in 2007) was a means
of countering the original Nabucco
pipeline (joint venture agreement
signed in 2005). The aim was to render
Nabucco unnecessary, and in particular
to prevent the eventual construction of
a Trans-Caspian Gas Pipeline (TCGP)
that could, with Nabucco, create a
transit route between Central Asia and
Europe that entirely bypassed Russia.
RUSSIA’S SOUTH STREAM PROJECT IS NOT AND NEVER
HAS BEEN PART OF THE EU’S SGC INITIATIVE, DESPITE
OCCASIONAL JOURNALISTIC AND EVEN ANALYTICAL
REFERENCE TO IT AS PART OF THE SOUTHERN CORRIDOR.
TCGP with the Niyazov leadership in
Turkmenistan. Russia countered by
proposing the Blue Stream pipeline
to Turkey, which was successfully
negotiated and constructed. It is
currently operational, but it has never
operated at its planned capacity, and
never in an economical way.
2. THE SGC AND EUROPEAN
ENERGY SECURITY
2.1. General Orientation
Moscow had already employed a
similar geopolitical strategy in the
late 1990s – and with success. At
that time initial efforts were made
by U.S. companies to negotiate a
As recently as 2008, “most scenarios
assumed that European gas
demand would be well above 600
bcm in 2015 and around 700 bcm
by 2030, driven by the power sector.”
31
CASPIAN REPORT, WINTER 2014
Kjetil Tungland,
Managing
Director for the
Trans Adriatic
Pipeline.