IEA speaks out on Russia’s Baltic gas pipeline

The International Energy Agency (IEA) has taken Poland’s side and reinforced its arguments against the construction of gas pipeline that will link Russia and Germany under the Baltic Sea.
“We entirely understand Poland’s position on this issue. From the Polish point of view it would be more favourable to remain a transit country. We dismiss the argument that thanks to the new gas line Poland’s gas supplies will be more secure,” said Faith Birol, chief economist at the IEA.

In addition, the Northern Pipeline will make Germany even more dependent on Russia in terms of gas supplies.
“Gas covers nearly 25 % of Germany’s energy needs, which is too much by far as the country is becoming more dependent on energy imports,” stressed Birol. He also pointed to the fact that Russia is currently satisfying 30 % of the demand for gas in Germany.
“This is worrying and puts Germany’s energy safety at risk,” said Birol.

The pipeline will take gas to Germany across the Baltic from Vyborg, a port near St Petersburg and the Finnish border. Spurs from the main pipeline could also feed gas networks in Finland, Sweden and Great Britain.
The undersea portion of the pipeline is expected to cost $ 2 bn, and is intended to bypass transit countries such as Ukraine, Poland and Baltic states. Official construction of the 1,200 km (744 miles) pipeline was begun on Dec. 9.

The North European Gas Pipeline has already stirred a lot of controversy in transit countries, such as Poland and Ukraine, prompting concern that Russia’s neighbours will eventually be cut off from Russia’s gas supplies.
Poland has called the pipeline plan a “conspiracy” against its interests, while the Baltic states offered their own pipeline project and cited environmental concerns trying to prevent Gazprom’s project from starting.