The leaders of Russia and Bulgaria finalized a deal this week allowing the proposed construction of a natural gas pipeline running through Bulgaria to begin. Talks had seen moments of duress with Russia’s opposition to sharing stakes in the pipeline with Bulgaria, insisting on holding onto an extra one percent share, giving Russia 51 percent holdings in the pipeline. Russia is so interested in the Bulgarian deal because it hopes to continue its stranglehold on the European natural gas market. The proposed pipeline would delve deeper into Europe than ever before, extending Russian company, Gazprom’s reach and ability to entice more and more European countries to rely on Russia to supply their natural gas needs.
The proposed pipeline will be 550 miles in length and run under the Black Sea from Russia to Bulgaria, where it would inevitably branch off in order to serve a much larger customer base. The United States and the European Union are very much disgruntled by these latest developments because of their impending deal to also run a pipeline through Bulgaria in efforts to counteract the growing monopoly the Russian gas company is creating in Europe. President Putin made it clear that Russian efforts have been motivated by the growing demand for natural gas and claims it is as a result of increased efforts by European nations who are “pleading” for the natural gas network Russia is proposing. Russia’s South Stream pipeline proposal has been jockeying for Bulgaria’s approval while plying its services against a similar deal, known as Nabucco, proposed to Bulgaria by the European Union and the United States. The proposed European Union-U.S. collaboration would deliver Caspian, and potentially Central Asian, gas westward through Bulgaria. Spokespeople for the South Stream pipeline project have levied their proposal against the European Union’s, intimating that the Nabucco proposal is vague at best, and that the South Stream pipeline is closer to reality and would be most advantageous to Bulgaria.
Bulgaria has pitted these two proposals against each other, having much to gain whichever project is victorious. Russia agreed to share ownership and profits (50%-50%) with Bulgaria earlier this week to help seal their agreement, allowing pipeline construction to move from the talking phase to an impending groundbreaking. Experts estimate that European natural gas demand could support the construction of both pipelines. Pipeline technology innovations pioneered and developed by ingenious engineers at American gas outfitters like Triple Diamond Energy Corp and others will definitely come in useful in the successful transportation of fuel throughout Europe.
About the Author: Robert Jent is the president of Triple Diamond Energy Corp. Triple Diamond Energy specializes in acquiring the highest quality prime oil and gas properties. For more information, visit www.triplediamondenergycorp.blogspot.com.
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