Oilprice.com: Overseas gas markets hinge on Ukraine
The Ukrainian government said it wants to allay European concerns over natural gas supplies by serving as a regional energy hub. Conclusions reached during a roundtable discussion in Brussels last week said Kiev deserves to be lauded for its diversification and gas transit modernization efforts. Nevertheless, a BP-led group working offshore Azerbaijan is expected in June to pick from two competing natural gas pipeline projects that are designed to add diversity to a European market that's dependent on Russia's Gazprom by avoiding Ukrainian territory. While Ukraine has tried to move closer to the European Union, recent developments involving the former Soviet republic show it's truly at a crossroads.
The BP-led consortium working offshore Azerbaijan said last week it started the evaluation process for the Nabucco West and the Trans Adriatic Pipeline systems. Both are included as part of the Southern Gas Corridor, a series of transit projects meant to add diversity to the European energy sector. Natural gas price disputes in 2009 between Russia and Ukraine left European consumers vulnerable because much of the gas sent to Europe by Gazprom runs through the Soviet-era pipeline system in Ukraine. Nabucco announced Monday it started the open-season process and a BP decision is expected by June.