* Russia prints pro-South Stream supplement in Italian paper
* Tony Blair to be appointed to support Azeri gas to Europe
By Henning Gloystein
LONDON, July 17 Russia is stepping up a public
relations effort in support of its controversial South Stream
gas pipeline project to supply southern Europe, but a rival
project to bring gas from Azerbaijan is also upping its game.
Russia is Europe's biggest supplier of natural gas, meeting
almost a third of the region's demand. Almost half of that gas
is piped to the European Union via Ukraine.
South Stream is designed to carry 63 billion cubic metres of
gas per year, equivalent to almost 15 percent of EU demand, from
Russia via the Black Sea into central and southern Europe. It
would bypass Ukraine and help Russia cement its position as
Europe's dominant gas supplier.
La Repubblica, one of Italy's biggest daily newspapers,
carried a full-page article on Thursday, part of an eight-page
supplement provided by RBTH (Russia Beyond The Headlines), an
information service owned by the Russian government, headlined
'South Stream on its way to going ahead'.
The article said that "new countries have confirmed their
participation in the project intended to change the (gas) supply
landscape of EU".
Against the backdrop of conflict in Ukraine, the pipeline
plan has become a focus of tensions between Russia and the
European Union. The EU Commission has suspended the approval
process for the project and has put pressure on member states to
freeze any work on the pipeline until the conflict is resolved.
"In the present context our position is very clear. South
Stream has no place when we are still in such difficulties with
Russia. Accordingly, we proposed to suspend South Stream," said
Dominique Ristori, director-general of the energy branch (DG
Energy) of the Commission in Brussels.
Despite the Commission's opposition to South Stream, the
energy industry and most countries in southern and central
Europe including Italy, Germany, Austria and Bulgaria support
South Stream, saying the region needs new supply routes to avoid
future transit risk through Ukraine.
Moscow has been wooing EU governments to support South
Stream. Last month during a rare visit by President Vladimir
Putin to Vienna, Austria gave its final approval to South Stream
in defiance of Brussels.
South Stream's main partners are Russia's Gazprom,
Italy's Eni, France's EDF, Austria's OMV
and Germany's Wintershall
COMPETITION FOR RUSSIA
Aware of Russia's efforts to push South Stream ahead,
competitors are not sitting idle either.
Azerbaijan plans to begin exporting 16 bcm of gas to Turkey
and from there on to Italy towards the end of the decade via the
Trans-Anatolian pipeline (TANAP) and Trans Adriatic Pipeline
(TAP), competing directly with Russian gas.
The Azeri Shah Deniz 2 gas export project is part of the
so-called Southern Gas Corridor project aimed at bringing new
central Asian gas supplies to Europe.
Shah Deniz 2 is led by Britain's energy major BP,
which is, together with its partners, setting up the Southern
Corridor Advisory Panel.
"An external panel set up voluntarily and jointly by... the
Southern Corridor projects' participants to advise on political,
environmental, reputational and societal challenges that may be
faced by the Shah Deniz 2, TANAP and TAP projects during their
early years," a BP spokesman.
The Energy Intelligence Group reported that the panel had
created a three-member advisory board of former British Prime
Minister Tony Blair, former German Foreign Minister
Hans-Dietrich Genscher and Peter Sutherland, chairman of Goldman
Sachs International, but BP would not confirm this.
Shah Deniz 2 and TAP are losing some partners with stakes of
10 percent or less. France's Total is withdrawing from
both, and Germany's E.ON is leaving TAP.
(Additional reporting by Francesco Guarascio and Barbara Lewis
in Brussels and Oleg Vukmanovic in Milan; editing by Jane Baird)