EU seeks energy ties with Kazakhstan as trust in Russia wanes

04-05-06

The European Union sent its energy commissioner to the Central Asian state of Kazakhstan for the first time to talk about gas and oil pipelines and investment opportunities, a move in line with Europe's desire to limit its reliance on Russian energy supplies.
Accompanied by representatives of Europe's oil and gas industry, Energy Commissioner Andris Piebalgs travelled to the oil and gas producing nation "to discuss the possibilities for enhancing energy cooperation," Brussels said.

The event marks the very first visit to Kazakhstan of any European energy commissioner.
"Strengthening discussions with Kazakhstan in the energy sector is of great importance for improving the security of energy supplies to the EU," Piebalgs said. Piebalgs will meet with the Kazakh president as well as with the foreign minister and energy minister to discuss new pipelines from the Caspian region to the EU Piebalgs and industry leaders will press for new investment opportunities in the energy sector in Kazakhstan with the national administration and the local energy industry.

Piebalgs will visit the Kashagan oil field, considered to be the largest oil discovery in the North Caspian Sea.
Europe is looking at alternatives to Russia's energy supply as Moscow refuses to allow Western energy companies to invest in its energy sector. European reliance on Russia's resources has become a key issue, with oil prices soaring to about $ 70 a barrel. This past winter, Russia cut its supplies of gas through Ukraine, causing shortages throughout Western Europe. Since then, EU leaders have been preoccupied with energy security and have attempted to negotiate, so far unsuccessfully, a new energy partnership with Moscow.

The EU wants increased access for European companies to invest in Russian energy supplies, along with assurances that Moscow will meet its rising demand for natural gas.
European Commission President Jose Manuel Barroso earlier called on Russia to sign up to an energy deal. He said he regrettedPresident Vladimir Putin had refused to negotiate during a recent dinner he shared with the Russian leader.

Kazakhstan is an important gas producer. It is also home to the largest recoverable oil reserves in the Caspian region -- at least 95 bn barrels of oil.
Kazakhstan will host an international meeting of energy ministers in November.
 

 

Source Dow Jones Newswires