April 26, 2024

European Union Seeks Power to Block Bilateral Energy Deals

BRUSSELS — The European Union’s executive arm announced plans on Wednesday aimed at stopping its countries from striking bilateral deals that cede too much power to oil and gas exporters like Russia.

Europe needs to look “beyond its borders to ensure the security of energy supplies” and “act together and speak with one voice,” the European Union energy commissioner, Günther Oettinger, said at a news conference.

The proposal represents a bid by the authorities in Brussels to take more control over a sector where countries zealously guard their sovereignty and where powerful utilities still dominate a number of crucial markets.

Mr. Oettinger said he wanted the right to demand information on energy deals involving member states and third countries before such deals are signed. Under the plan, the European Commission, the union’s executive arm, would publicize any concerns. If those concerns were ignored, the commission could sue member countries to change the terms of any agreements that threatened to jeopardize the union’s overall energy security.

The proposal would require approval by member states and the European Parliament.

Governments might balk if major oil and natural gas companies vying for new contracts in places like Libya insisted that sharing such information would jeopardize their negotiations.

But Mr. Oettinger said he was optimistic for passage after national leaders in February backed the idea of more centralized management of international energy deals. He also said the commission could be trusted to preserve confidentiality in commercially sensitive cases.

European Union authorities struggled last year to make sure Poland and Russia gave other operators access to a natural gas pipeline called Yamal, which is partly owned by Gazprom, the Russian monopoly gas exporter.

Europe’s relations with Russia in the energy sphere have long been tricky.

Russia supplies nearly a quarter of Europe’s natural gas. But those supplies have been interrupted in recent years because of disputes between Russia and its neighbors, like Ukraine, leading to severe shortages in parts of Europe in the depths of winter.

Mr. Oettinger said there were not “any immediate concerns” about cutoffs this coming winter as a result of continuing tension between Russia and Ukraine.

But European authorities continue to push plans to build a pipeline called Nabucco to deliver natural gas to Europe from the Caspian region, bypassing Russia.

On Wednesday, Mr. Oettinger reiterated his call for European Union governments to give him a mandate to negotiate an agreement with Azerbaijan and Turkmenistan on a trans-Caspian gas pipeline. That pipeline would be a crucial feeder for Nabucco. But Russia has long held influence in the Caspian region and wants to tap natural gas there, too.

Mr. Oettinger also said he could request similar mandates in the future in cases where the European Union would be relying on energy infrastructure outside the Union, like Desertec, a solar and wind energy project in North Africa.

Desertec is a project aiming to deliver as much as 15 percent of the European Union’s electricity needs through high-voltage transmission lines under the Mediterranean Sea.

European officials said negotiating contracts at the union level could make it easier to ensure the security of investments in solar power in countries like Tunisia, Libya, Morocco and Algeria.

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Green Column: Obstacles to Capturing Carbon Gas

BRUSSELS — Can the world use fossil fuels and protect the climate too?

That is the goal of carbon capture and sequestration, which is a process for trapping carbon dioxide before it reaches the atmosphere and then pumping it underground, or under the seabed.

The process is already used by oil and natural gas companies like BP and Statoil at sites like In Salah, Algeria. There, the carbon dioxide that exists along with natural gas is captured and stored onshore in a saline aquifer.

Despite a tiny leak from a faulty wellhead valve four years ago, and despite the need to reduce the quantities of carbon dioxide injected because pressure had built up in the saline aquifer faster than expected, BP of Britain and Statoil of Norway said, millions of tons of the greenhouse gas have been prevented from reaching the atmosphere.

Oil and natural gas companies also have trapped large amounts of carbon dioxide in the minute pores and spaces in rocks at similar projects in countries like Norway and Canada.

But efforts to make the process, known as C.C.S., a mainstay of efforts by the power industry to go green are hitting obstacles.

Critics warn that a large leak could harm the climate and local populations. They also say huge amounts of state support would be needed to pay for infrastructure like pipelines, taking money away from renewable energy projects.

Supporters say the technology is essential if the world is ever to meet targets for cutting greenhouse gases and preventing runaway climate change. They say C.C.S. is the most viable way to curb emissions from existing fossil fuel plants and that it should be cost-competitive in the coming years.

They also say that there is large storage capacity in depleted oil and natural gas fields and deep saline aquifers across the world.

Although the separate elements of capture, transportation and storage already have been demonstrated, and although big engineering companies like Siemens of Germany and Alstom of France are helping construct pilot projects, a commercial-scale facility for capturing and burying carbon dioxide from a power plant has not yet been built.

Managing costs is a challenge. That was underlined by a decision last month by American Electric Power, a major U.S. utility, to put on hold plans to build a full-scale carbon-capture plant at Mountaineer, a coal-fired electrical plant in West Virginia, where the company has successfully captured and buried carbon dioxide in a small pilot program.

The company said it had to drop the $668 million project because it did not believe state regulators would let it recover its costs by charging customers, leaving no compelling regulatory or business reason to continue the program.

Another factor clouding prospects for C.C.S. is local acceptance, particularly in Europe.

Residents and environmental groups have raised concerns about the possibilities of contaminating water. There also are concerns about suffocation if large quantities of carbon dioxide should leak out and collect in valleys.

The effect that C.C.S. projects could have on property prices has also stirred unease.

Opposition to carbon dioxide burial has become known as numby, for “not under my backyard” — a variation of the more common “nimby,” or “not in my backyard,” denoting opposition to projects like power plants.

Last year, sustained local opposition led the Dutch government to cancel a project led by Royal Dutch Shell, an oil and natural gas company based in the Netherlands, that would have buried carbon dioxide under Barendrecht, a town near Rotterdam.

Delays and a “complete lack of local support” forced the cancellation, according to Maxime Verhagen, the Dutch minister for economic affairs.

In Germany, where there is a fierce debate over whether to pass a law laying down rules for testing carbon dioxide storage, companies like Vattenfall, a Swedish utility, face a long and uncertain wait for permission to test the suitability of burial sites.

Vattenfall had to abandon plans to bury carbon dioxide in Altmark, in the German state of Saxony-Anhalt, because of protests, and it faces a similar challenge at Beeskow, a site in Brandenburg State.

“We’re doing everything we can to develop C.C.S. but the future of the technology now lies in the hands of national politics,” said Maria Lidzell, a spokeswoman for Vattenfall.

Article source: http://feeds.nytimes.com/click.phdo?i=2d74e74f817e2c158007729ec08df112