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Russia: Gas Supply

Volume 705: debated on Tuesday 4 November 2008

asked Her Majesty's Government:

What discussions they and the European Union have had with the Government of Russia concerning the flaring of gas from oil wells and other installations; with what results; and what contribution they estimate that this practice in Russia makes to climate change. [HL5773]

The UK-Russia Energy Forum, established by the then Secretary of State, Alastair Darling, and then Russian Energy Minister, Viktor Khristenko, in February 2007, covers a number of energy issues of mutual interest. The current focus of discussions is energy efficiency but gas flaring has been identified as a priority for the future. The EU-Russia energy dialogue, and in particular the joint group on energy efficiency, is the main forum for discussions between the EU and Russia on energy matters generally and energy efficiency in particular, including gas flaring.

The International Energy Agency estimates that carbon dioxide emissions from gas flaring in Russia in 2004 were 43 million tonnes of carbon dioxide equivalent, representing 15 per cent of Russian greenhouse gas emissions.

asked Her Majesty's Government:

Whether the European Commission's competition directorate has investigated the operations of Gazprom in Europe, as requested by Ministers in 2006; if so, with what result; and, if not, why not. [HL5774]

The Council of Energy Ministers recently agreed the so-called third liberalisation package, which the UK supported and expects will improve the functioning of the EU energy market. It is hoped that the dossier can now be finalised with the European Parliament in time for it to come into force early in 2009.

The Commission, through its directorate-general for competition, is responsible for enforcing the competition rules of the Community treaties to ensure that competition in the EU market is not distorted and that markets operate as efficiently as possible. Information on the activities and investigations carried out by the European Commission's competition authorities is available on the directorate-general for competition's website.

asked Her Majesty's Government:

Whether the European Union will allow Gazprom to acquire further European distribution networks and refineries, if it is not in the interests of European consumers and companies. [HL5775]

The European Commission, through its directorate-general for competition, is responsible for enforcing the competition rules of the Community treaties to ensure that competition in the EU market is not distorted and that markets operate as efficiently as possible for the benefit of European consumers and the European economy. Should the European Competition authorities believe that any third-country company trying to acquire an interest in a European business were a threat to competition under the treaties, it would be for those authorities to examine the issues and determine the appropriate action.

In the UK, the Office of Fair Trading, the independent consumer and competition authority, would assess whether or not any such transaction would be likely to damage consumer interests through restricting competition.

asked Her Majesty's Government:

Whether the European Union has considered the economic, political and environmental consequences of the proposed trans-Baltic gas pipeline Nord Stream; and, if so, with what conclusions. [HL5776]

The European Union, through the European Commission's DG for transport and energy, is keenly aware of concerns about the Nord Stream gas pipeline. The project is currently the subject of environmental impact assessments in a process involving all the countries around the Baltic, in line with the Espoo Convention as well as Council directive 97/11/EC and national permits and licences, and these processes must be allowed to run their normal course.

asked Her Majesty's Government:

Whether the European Union has investigated the trading activities and ownership of ITERA, Eural Trans Gas and RosUkrEnergo, in so far as they operate in Europe; and, if so, with what result. [HL5777]

The European Commission, through its directorate-general for competition, is responsible for enforcing the competition rules of the Community treaties to ensure that competition in the EU market is not distorted and that markets operate as efficiently as possible for the benefit of European consumers and the European economy. Information on the activities and investigations carried out by the European Commission's competition authorities is available on the directorate-general for competition's website.

asked Her Majesty's Government:

Whether the relationship between Gazprom and Sonatrach has any effects on competition in Europe. [HL5778]

We are monitoring the situation concerning Gazprom and Sonatrach and if we felt that there were any recent developments that raised competition issues we would take these up with the Commission.