The efforts of American energy companies to increase their influence in the Western Balkans are raising concerns in the European Union that the region could become dependent on American fossil fuels, at a time when it seeks to achieve clean energy goals in order to further integrate into the EU, writes the Brussels portal Politico.
Albania, Kosovo, and Bosnia and Herzegovina have shown interest in purchasing large quantities of liquefied natural gas (LNG) from the US or in building infrastructure that would enable its import, claiming that they need gas as a transitional fuel while reducing imports of Russian energy and coal consumption and switching to renewables, which are key elements of their path to EU membership.
EU officials, however, question the necessity or desirability of these projects, given that there is currently little or no demand for gas in these countries.
The efforts to flood these markets with gas, Politico notes, carry the risk of their greater long-term dependence on gas imports from abroad.
The EU’s goal is to reduce greenhouse gas emissions to zero by 2050 and to increase the use of renewable energy sources, and new member states must align with this, while EU officials fear that increased gas imports could jeopardize these goals.
The EU’s plan to halt imports of Russian gas, as well as disruptions in global markets due to the war in Iran, have created an opportunity for the American gas sector to sign a series of supply contracts in the wider region.
András Hujber from the Directorate-General for Energy of the European Commission stated at a forum held this week in Vienna that these agreements could go beyond the goal of replacing Russian gas supplies and contribute to increased emissions in the region.
“We should not be introducing gas to markets that do not have it,” Hujber said in response to a question from Politico.
He emphasized that the countries of the region, as part of their aspirations to join the EU, have undertaken commitments for decarbonization and the gradual abandonment of fossil fuels.
Delivering gas to the region in this context “seems to be at odds with this key decarbonization goal,” said Hujber, who is responsible for the EC’s energy diplomacy in the Western Balkans.
Hujber cited as an example the preliminary agreement between Bosnia and Herzegovina and Washington on the construction of the Southern Interconnection gas pipeline, which would supply Bosnia and Herzegovina with natural gas via the LNG terminal on Krk, thereby reducing dependence on Russian gas.
This project has been accompanied by controversy after the parliament of Bosnia and Herzegovina adopted a law designating the small American company AAFS, led by close associates of US President Donald Trump, as the main operator of the gas pipeline.
“Our ambassador has sent letters and pointed out the problems we potentially see regarding this project,” said Hujber, adding that the Commission plans to “take further steps as appropriate,” but without specifying what measures might be applied.
Internal EU correspondence, seen by Politico, confirms these concerns, pointing to a lack of transparency regarding the contract with AAFS, as well as risks associated with gasification.
This project has also raised concerns from the Energy Community, an EU initiative that helps membership candidates align their regulations with EU rules.
The Director of the Energy Community Secretariat, Artur Lorkowski, told Politico that it is crucial to ensure competition, fairness, and transparency, and to provide equal rules for all.
“The EU legislation we promote does not define who should be the supplier, but the key element is ensuring equal conditions regarding the regulatory framework. In other words, we do not want Bosnia to be any kind of exception or to have privileged access to the market. This should be avoided because it would not be in line with EU legislation,” said Lorkowski.
Politico also recalls that Albania signed a 20-year contract with the American company Venture Global for the supply of liquefied natural gas, as part of broader cooperation with the US and Greece, and that Serbia and North Macedonia also plan to import American LNG via interconnection with Greece.
A spokesperson for the US Department of Energy stated that the cooperation “will contribute to stability in the region, lower energy prices, and encourage trade and prosperity.”
According to him, these projects will help Albania and Bosnia and Herzegovina “reduce dependence on Russian gas” by replacing it with American liquefied natural gas.
Despite negative reactions from EU officials, representatives of Western Balkan countries who spoke at the meeting in Vienna emphasized that agreements with the US are necessary for alignment with the EU’s green transition, which will require significant amounts of gas to ensure reliable “base” electricity supply when more unstable energy sources are offline and during the gradual phase-out of coal.
An Albanian government official, who wished to remain anonymous, said that hydropower, which has the largest share in the country’s energy mix, is becoming increasingly unreliable due to droughts and low water levels caused by climate change.
Therefore, natural gas, which currently makes up only 1.8 percent of the energy mix, is needed as a transitional fuel that can support the power grid while renewable capacities are being developed.
According to the official, gas infrastructure is key for diversification and security of supply.
The spokeswoman for the Ministry of Energy, Mining and Industry of Bosnia and Herzegovina stated that the construction of the Southern Interconnection is necessary to end dependence on only one route and one source and to strengthen energy security, as Bosnia and Herzegovina has only one gas pipeline for supply from Russia.
Western Balkan countries aspiring to EU membership are desperately seeking to secure alternative energy sources that the EU cannot or will not provide, Politico notes, adding that the EU produces minimal amounts of gas, refuses to finance new gas infrastructure in the region, and itself is increasingly dependent on American LNG.
Your perspective is part of the story
Start the discussion and be the first to comment on this story.