European Energy Supply and Consumption: Effects on the European Energy Security, with Specific Reference to the Southern Corridor
The recent ratification of the Final Investment Decision on the development of the Azerbaijani offshore Shah Deniz natural gas field has given the final green light to the long-awaited EU’s Southern Gas Corridor. The Southern Corridor will diversify European natural gas supply in a context of growing dependence on energy imports. However, its impact on the European energy security needs to be assessed considering the capacity of the infrastructures currently under construction and the real scalability of the project. All the gas exported through the Southern Corridor is expected to come from Azerbaijani fields. In order to expand the Southern Corridor up to a size able to significantly impact the structure of the European supply, other producing countries need to be added on the upstream side. However, political and economic issue is could reduce the possibilities for the upstream side to expand beyond Azerbaijan and scale up the Southern Corridor as an effective and reliable diversification source with a EU-wide impact.