Changes

Europe’s gas suppliers are poorly diversified. However, this implies various risks concerning security of imports. In the gas sector, Gazprom enjoys a complete monopoly on many EU countries (such as the Baltic States). As a consequence the supply of natural gas may be limited or stopped or its price may be lifted at any time without any real negotiations. It is even more dangerous that Russia may use these instruments to create direct political or economic pressure on national governments, or as a means of sanctioning <ref>[http://iep-berlin.de/wp-content/uploads/2014/08/SPES_Policy_Papers_2011_MOLIS.pdf Policy Papers SPES - Rethinking EU-Russia energy relations: what do the Baltic States want? 2011]</ref>. Already in 2009 Russia cut gas exports via Ukraine towards Europe of 60%<ref>[http://www.dailymail.co.uk/news/article-1106382/Europe-plunged-energy-crisis-Russia-cuts-gas-supply-Ukraine.html Mail Online, by Robert Lea "Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine" 2009]</ref>. Today the European Parliament believes that the framework ensuring fair and non-discriminating access to natural gas networks and a free flow over national borders, established through the creation of a European Energy Union and gas network codes<ref>[http://ec.europa.eu/energy/node/54 European Commission (Energy): Gas network codes 2017]</ref>, is in need of improvement<ref>[http://www.europarl.europa.eu/RegData/etudes/note/join/2009/416239/IPOL-ITRE_NT(2009)416239_EN.pdf European Parliament: Gas and Oil pipelines in Europe 2009]</ref>. Specific problems arise in the case of cross-border pipeline projects involving different regulatory framework. There is no clear mechanism for the resolution of potential conflicts and the rights and obligations of stakeholders can differ according to the Member State. Additionally the nature of the gas market may be incompatible between two countries connected by a pipeline, and therefore the integration of different legal regimes may increase the transaction costs of constructing and operating a pipeline<ref>[http://siteresources.worldbank.org/INTOGMC/Resources/crossborderoilandgaspipelines.pdf Joint UNDP World Bank Energy Sector Management Assistance Programme (ESMAP): Cross-Border Oil and Gas Pipelines, Problems and Prospects 2003]</ref>. Cooperation between Member States and ensuring regulatory coherence are necessary to secure Europe’s gas supply.

Alongside the aforementioned issues, Member States have different interests concerning gas supply. Poland believes that the [[Nord Stream 2]] project is not consistent with the objectives of the Energy Union, as it does not give access to new sources of gas, but strengthens the position of Russia as the largest natural gas supplier in the European market<ref>[http://www.thenews.pl/1/10/Artykul/301977,Negotiating-with-Russia-on-Nord-Stream-2-is-dangerous-precedent-Polish-MEP Radio Poland "Negotiating with Russia on Nord Stream 2 is dangerous precedent: Polish MEP"]</ref>. While Germany is more focused on the liberalisation of the energy market, opening the market for electricity rapidly, boosting competition in energy supply firms and product prices<ref>[http://www.feem.it/userfiles/attach/Publication/NDL1999/NDL1999-095.pdf Institute of Energy Economics and the Rational Use of Energy (IER) by Claudia Kemfert: The Liberalisation process of the German Electricity Market Strategies and Opportunities 2009]</ref>, Poland is trying to secure its energy supply while slowly shifting towards more sustainable energy sources. In fact, coal dominates the power sector of Poland, where it is still the largest source of greenhouse gas emissions as well as a major employer<ref>[https://www.iea.org/countries/membercountries/poland/ International Energy Agency (IEA): In-depth country review 2016]</ref>.

==Key Questions==