Two interesting stories about the European gas market have emerged recently.
The first, points to an EU funded plan to build the “Balticconnector”, between Finland and Estonia, to help reduce the Baltic states’ dependence on Russian gas imports.
This article states that the EU is funding 75% of the Project – the maximum allowed. What’s interesting here is that this implies that there is no business case for the project – i.e. there’s no profit in it – otherwise an energy provider or gas company would be funding the project. So clearly it is politically motivated.
This is further proven by the fact that;
The pipeline will be constructed by Finnish Baltic Connector Oy, a project company set up by the Finnish government, and Estonian Elering AS, operator of the country’s gas and power grid.
The Finnish government decided to go ahead with the pipeline last year, despite its majority state-owned gas utility Gasum pulling out due falling domestic demand.
I wonder how the people of Europe feel about their money being used for political purposes?
Particularly as a second article talks about the TurkStream gas project that will consist of two gas pipelines supplying Russian gas for use by Turkey and for delivery to Europe. Thereby increasing Europe’s dependence on Russian gas.
Maybe the EU should stop meddling in things it has no control over.