A SWOT Analysis of the Nabucco Pipeline from Romania’s Point of View

Mariana Papatulica

Revista de Economie Mondiala / The Journal of Global Economics, 2009, vol. 1, issue 3

Abstract: European Union energy sources are supposed to be sufficient to cover expected growth of natural gas demand for the coming decades, but there are not enough opportunities/infrastructure to transport these volumes of gas to European markets. Arbitrary interruptions of Russia gas deliveries towards Europe, the delays in the rehabilitation of its obsolete pipeline network, the interdiction of direct Asian gas exports transit through Russian transport infrastructure, made stringently necessary for European countries to diversify gas suppliers’ portfolio, by avoiding Russian territory. Nabucco pipeline was conceived as an alternative to European Union countries’ high dependence on Russian gas (about 40% of their consumption is provided by Russia), by connecting European Union countries directly to the huge natural gas resources of Central Asia, on the route Turkey – Bulgaria – Romania – Hungary – Austria. The purpose of this paper is to make a SWOT analysis of this project, highlighting its strengths and weakness from Romania’s point of view, as well as the opportunities and threats as external factors. The main idea resulting from the analysis is that strengths are prevailing for Romania. The turning to account of this project will ensure the diversification of gas sources and the development of competitive markets which can entail price reduction. It is supposed to be a fair and advantageous option, economically reliable, that will reduce dependence on deliveries of gas from a single source – Russia, ensuring two undeniable prerequisites: accessibility (to new supply sources) and availability (which refers to guarantees of long term sustainability of gas deliveries). The project implementation will allow energy to help to establish new structural links between the EU, Turkey and the Caspian Sea states and will ensure transfrontier cooperation possibilities inside some euro-regions already constituted, by accessing regional development funds at EU level. Its route on Romanian territory (through the plain from the southern part of the country) will be an important advantage in pipeline layout, implying lower costs. Nabucco pipeline will create the opportunity of a better connection of our NTS (National Transport System) to the European gas network. All the countries involved in the project are OTAN members, so that Nabucco can also become a vector for political stability in the Black Sea region.

Keywords: natural gas; infrastructure; interconnection; energy security; supply diversification; public investment (search for similar items in EconPapers)
JEL-codes: H54 L98 Q48 (search for similar items in EconPapers)
Date: 2009
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