WRITTEN QUESTION E-1118/01

by Esko Seppänen (GUE/NGL) to the Commission

(6 April 2001)

Subject: Energy security

Over the next ten years, the EU's dependence on other countries for its energy will grow. In particular it will be increasingly dependent on Russia and its neighbouring regions for gas imports. What plans does the Commission have concerning oil and gas imports from these areas and does the Commission have a view on which regions the oil and gas pipelines should be routed through?

Answer given by Mrs de Palacio on behalf of the Commission

(12 June 2001)

The fact that the Community's energy supply is increasingly dominated by imported fossil fuels was a major reason for the publication in November 2000 of the Commission's Green Paper on the security of energy supply(1). Currently, as the Commission notes in its Green Paper, oil accounts for 41 % of current Community energy demand, gas 22 %, coal 16 %, nuclear 15 % and renewables 6 %. Over the next 20-30 years, assuming current trends continue, the share of gas will rise significantly to 29 %, while oil will be around 38 %, coal 19 %, nuclear 6 % and renewables 8 %. Over the same period, energy imports into the Community are due to increase from around 50 % of today's energy consumption to 70 % over the next 20-30 years. Dependence on oil imports could rise from 80 % to over 90 %, gas imports could increase from 40 % to 66 % (70 % in an enlarged Community) and dependence on imported coal could be almost complete.

As far as gas is concerned, demand in the Community is currently growing strongly due, in large part, to the increase in the use of gas for electricity generation. This, coupled with the forecast reduction in domestic gas production, has implications for the future security of the Community's gas supply. Russia currently provides 41 % of all gas imports into the Community and is the main supplier, followed by Algeria (29 %) and Norway (25 %). Russian gas supplies satisfy 17 % of current total Community gas demand. It is forecast that, by 2020, gas imports from Russia could cover 38 % of Community gas demand. Russia has been a reliable supplier of natural gas to the Community for some time and the Commission is confident that Russia will continue to fulfil its commitments to the Community as in the past.

In addition to the need for energy efficiency measures and new alternative energy sources, the Commission's Green Paper underlines the importance for the Community of ensuring flexible, reliable and diversified external sources of supply. An important aspect of this is deepening the dialogue with all energy producing countries and extending it to cover all matters of common interest, in particular protection of the environment and technology transfer. With specific reference to Russia, the Green Paper notes that Russia is prepared to work towards improving the Community's long term security of energy supply and that, for its part, the Community is prepared to act as a facilitator to mobilise investments in the energy sector.

New technology and investment will be necessary to increase output and to maintain, improve and extend pipeline networks for Russian gas, and to reduce energy wastage. New projects or investments relating to the supply of gas or oil from these areas, as well as decisions on which are the best routes to use, are a matter for market players, taking into account economic conditions and market needs. These issues are central to the Community's energy dialogue with Russia instituted at the Paris Union-Russia Summit in October 2000.

(1) COM(2000) 769 final.