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Energy Security, Trade and the EU

Regional and International Perspectives

Rafael Leal-Arcas, Costantino Grasso and Juan Alemany Ríos

Energy security is a burning issue in a world where 1.4 billion people still have no access to electricity. This book is about finding solutions for energy security through the international trading system. Focusing mainly on the European Union as a case study, this holistic and comprehensive analysis of the existing legal and geopolitical instruments strives to identify the shortcomings of the international and EU energy trade governance systems, concluding with the notion of a European Energy Union and what the EU is politically prepared to accept as part of its unified energy security.
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Chapter 3: Energy transit

Rafael Leal-Arcas, Costantino Grasso and Juan Alemany Ríos

Extract

; Section III provides an analysis of various Intergovernmental Agreements and HGAs on oil and gas transit pipelines in several parts of the world; and Section IV provides a brief conclusion.Global energy consumption continues to draw heavily on primary energy resources that, in addition to being highly polluting, are finite and patchily distributed across the globe. Very few states are truly energy sufficient and energy independent, hence the importance of transnational policy networks. Against this backdrop, it is no surprise that the cross-border and cross-regional transportation of energy resources (hereinafter energy transit) is no new phenomenon. This energy transit relies on a variety of means, including vessels and other means of transportation, and conduits such as cross-border overland and underwater pipelines, for bringing energy goods to markets. For instance, states such as Turkey and Ukraine are important energy transit states for EU energy imports from the Caspian Sea region and from Russia. Spats between, for instance, energy exporting states and transit states may cause shocks to energy flows that could have negative implications for consumer states’ energy security. One such incident was the Russia–Ukraine dispute of 2009, which brought the issue of energy transit sharply into focus by affecting EU energy markets and consumers, given that up to 20 per cent of EU gas supplies transit via Ukraine.

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