European Commsision to Launch New LNG Strategy
Brussels remarked the role of Algeria and Turkey for European energy security, which should also hinge on a “new” continental LNG strategy. During his speech, a few hours after launching two new schemes on Monday, Commissioner Arias Cañete reiterated the importance of financial support for new projects.
TURKEY, ALGERIA, LNG
“We need to consolidate our relationship with our trusted partners such as Norway reach out to new transit countries and suppliers like Turkey and Algeria, and support old friends, like Ukraine, and the Energy Community” Commissioner Arias Cañete said at the Lisbon Council on Tuesday.
The European Commission, which is expected to present its proposals for an Energy Union on February 25, sees an internal energy market as central to its long-term strategy. At the same time, it wants new infrastructure projects to offset the decrease in domestic production, eyeing LNG opportunities across the continent. Brussels knows that the Southern Gas Corridor cannot be its only trumpet card. Additional investments are required.
“We should build the necessary infrastructure to bring this gas to where it is most needed in the EU. This is why I will be proposing a new EU LNG strategy, and working to accelerate other infrastructure projects” Cañete said during his speech.
On Tuesday, the European Commissioner also said that lines of private finance guaranteed by public money will be the backbone, and the trigger of the new investments.
“In recent years, the EU has been developing pilot schemes of innovative financing instruments and has earmarked €38 billion for low carbon economy investments under the Structural and Investment Funds (ESIF) 2014-2020 – and this sum can be multiplied by attracting private capital.
The Commission will continue to work with the financial institutions and Member States to put in place the necessary financing framework” Cañete remarked on Tuesday, a few hours after launching two new schemes meant to support private investments.
NEW SCHEMES
The €80 million Private Finance for Energy Efficiency (PF4EE) scheme and the €100-125 million Natural Capital Financing Facility (NCFF) schemes are expected to give low-cost credit for projects in the energy/climate field in the period 2015-2017.These long-term low-cost loans are combined with technical support, and credit risk protection for banks.