Politico: EU concerned about Western Balkans’ dependence on American gas

Efforts by U.S. energy companies to expand their influence in the Western Balkans are raising concerns in the European Union that the region could become dependent on American fossil gas, just as it aims to meet clean-energy targets to integrate further into the EU, writes the Brussels portal Politico.

Albania, Kosovo and Bosnia-Herzegovina have expressed interest in buying large quantities of liquefied natural gas (LNG) from the U.S. or in building infrastructure that would enable its import, arguing they need gas as a transitional fuel as they reduce imports of Russian energy and coal consumption and move toward renewables — key elements of their path to EU membership.

EU officials, however, question the necessity or desirability of these projects, given that these countries currently have no demand for gas or only a small one. Efforts to flood these markets with gas, Politico writes, carry the risk of greater long-term dependence on gas imports from abroad. The EU’s goal is for greenhouse gas emissions to reach zero by 2050 and for renewable energy use to increase; new members must adapt, but EU officials fear increased gas imports could jeopardize these goals.

Andras Hujber of the European Commission’s Directorate-General for Energy told a forum held this week in Vienna that these deals could go beyond the goal of replacing Russian gas supplies and contribute to rising emissions in the region. “We should not push gas into markets that don’t have it,” Hujber said, answering a question from Politico. As an example he cited the preliminary agreement between Bosnia-Herzegovina and Washington on building the “Southern Interconnection” pipeline, through which BiH would be supplied with natural gas via the LNG terminal in Krk, reducing dependence on Russian gas. The project has been accompanied by controversy, after the BiH parliament passed a law designating the small American company AAFS — run by close associates of U.S. President Donald Trump — as the pipeline’s main operator. Internal EU correspondence seen by Politico confirms these concerns, highlighting the lack of transparency around the AAFS contract and the risks linked to gasification. Artur Lorkowski, director of the Energy Community Secretariat, told Politico it is essential to have competition, fairness and transparency and to ensure a level playing field for all. “The EU legislation we promote does not determine who should be the supplier, but the key element is ensuring equal conditions regarding the regulatory framework. In other words, we don’t want Bosnia to be an exception or to have privileged access to the market,” he said.

Politico also recalls that Albania has signed with the American company Venture Global a 20-year contract for the supply of liquefied natural gas, as part of broader cooperation with the U.S. and Greece, and that Serbia and North Macedonia also plan to import American LNG via the interconnection with Greece. A spokesperson for the U.S. Department of Energy said the cooperation “will contribute to stability in the region, lower energy prices and promote trade and prosperity,” and that these projects will help Albania and BiH “reduce dependence on Russian gas,” replacing it with American LNG. Despite negative reactions from EU officials, representatives of Western Balkan countries who spoke at the Vienna meeting stressed that deals with the U.S. are necessary to adapt to the EU’s green transition, which will require considerable quantities of gas to ensure a reliable “baseload” electricity supply when more volatile sources are offline and during the gradual phase-out of coal.

Source: Politico