Cañete sets out gas priorities

Climate Action and Energy Commissioner Miguel Arias Cañete has reiterated his call for the implementation of an integrated gas market. Delegates at this year’s annual Gas Industry Europe conference in Dublin were reminded of the potential to produce lower prices and improve security of supply within the EU.

Acknowledging that several EU countries remain entirely reliant on Russian gas for their supply, Cañete stated: “The situation in Ukraine has sharpened our sense to the risk of those dependencies entail.” An alternative comprehensive diversification strategy is necessary to vary energy sources, suppliers and routes. For instance, the construction of new pipelines could open up the southern gas corridor between Europe and Central Asia. Similar projects in the Mediterranean and Norway could also be pursued.

The Energy Commissioner also called for an adoption of common market rules which would remove obstacles to trade. However, he asserted that a process to complete missing links in internal infrastructure is essential in order to make that happen.

An estimated €1 trillion of investment is necessary to construct the required energy infrastructure alone. While the Connecting Europe Facility programme will supply €5.85 billion, it is clear that public money will not be enough to plug the investment gap for infrastructure. The Commission’s strategy is to obtain as much private investment as possible.

Commissioner Cañete used his closing remarks to call for support from investors. He contended: “Only by completing the internal market will we be able to guarantee security of supply for all member states.” In turn, only the injection of private investment into key infrastructure programmes can ensure the establishment of an internal energy market.