Russia seals pipeline deal | News | Al Jazeera

Russia seals pipeline deal

Putin in Greece for oil pipeline deal, while many fear Russian energy dominance.

    The 90-cm conduit will channel 700,000 barrels of oil a day to Greece, and have a potential capacity of 1 million barrels [GETTY]

    European dependency

     

    The Russian consortium is made up of state oil company OAO Rosneft, Transneft, and a subsidiary of state-controlled gas giant OAO Gazprom.

    They will be responsible for the infrastructure, pumping stations, storage facilities and loading docks.

     

    Claudia Kemfert, an analyst at the German Institute for Economic Research, said: "Russia already provides Europe with a third of its oil and 40 per cent of its natural gas.

     

    "You get a strengthening of supply, but it can create higher dependency and other problems. You always have a trade-off ... to avoid this we need more diversification on the supply side, and to be less dependent on Russian energy," Kemfert said.

     

    "We need to look more to the global market ... but pipelines are not that flexible."

     

    US interests

     

    The 90cm (36-inch) diameter pipeline will channel 700,000 barrels of oil a day to Greece, and have a potential capacity of 1 million barrels.

     

    On Monday, Matthew Bryza, US deputy assistant secretary of state for European and Eurasian affairs, visited Athens and expressed support for the project.

     

    But he said: "Where we are focusing most urgently now is diversification of gas supply ... away from its one primary supplier, Gazprom."

     

    US officials want Greece to prioritise gas from Azerbaijan in a natural gas network being built from central Asia to Greece through Turkey that is due to continue onto Italy after 2011.

     

    In Athens, 3,000 police have been deployed for Putin's visit, which coincides with plans for a mass student demonstration in the Greek capital on Thursday.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    America's Guns: Secret Pipeline to Syria

    America's Guns: Secret Pipeline to Syria

    How has the international arms trade exacerbated conflict in the Middle East? People and Power investigates.

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.