The External Dimension of the EU Energy Security in the Field of Natural Gas – the Approach to Diversification of Suppliers

Abstract

The paper deals with one aspect of the external dimension of EU energysecurity, namely the question of diversification of the natural gas supply inthe case of import dependence. The diversification of natural gas importsplays a specific role, as it depends on the capability and acceptability of newtransport routes. The aim of this paper is to create a methodologicalframework for evaluating individual variants of the diversification ofpipelines and suppliers by using quantitative methods. For the comparisonof gas pipeline variants, six criteria were chosen (annual gas pipelinecapacity, the contract price and margins negotiated with the natural gasproducer and transit states, the remaining available natural gas reserves inthe source country, political and security stability of source countries, thenumber and political and security stability of transit countries, and energydensity of natural gas). From the criteria an index was constructed. Thismakes it possible to compare alternatives while taking into account thepolitical and economic dimension in the planning and implementation oftransport networks.