EU countries meet to tussle over gas project funding



By Kate Abnett

BRUSSELS, June 11 (Reuters) - European Union energy ministers meet in Luxembourg on Friday to debate prolonging EU support for some cross-border natural gas projects, despite the European Commission saying such funding should end to meet climate change goals.

The EU's "TEN-E" rules define which cross-border energy projects can be labelled Projects of Common Interest (PCI), giving them access to certain EU funds and fast-tracked permits.

The EU is upgrading the rules to comply with its climate change targets, and in December the European Commission proposed a new version excluding dedicated oil and gas infrastructure.

EU energy commissioner Kadri Simson said on Friday she hoped the rules would remove support for fossil fuel projects.

Energy ministers from EU countries will on Friday attempt to agree their position. They must negotiate the final rules with European Parliament.

A proposal for the member states' position, drafted by Portugal and seen by Reuters, would prolong funding for some gas projects.

That has divided the 27 countries, with 11 countries including Germany, Denmark, the Netherlands calling for rules that exclude fossil fuels, including gas.

The TEN-E policy will be a "litmus test" of the EU's pledge to eliminate its net emissions by 2050, those countries said in a paper previously reported by Reuters.

Portugal's proposal said that until 2030 investments to retrofit gas pipelines to carry hydrogen should be allowed to carry natural gas blended with hydrogen.

"This solution enables member states using more polluting energy sources to lower their carbon dioxide emissions, and the gradual injection of renewable gases into the grid," Portugal said in a document shared with countries ahead of Friday's meeting.

It also said projects in the island countries of Malta and Cyprus with PCI status should retain it until those countries are fully connected to the European gas network.

That could help ensure the completion of Greece, Cyprus and Israel's Eastmed pipeline to supply Europe with gas from the eastern Mediterranean.
Reporting by Kate Abnett; Editing by Angus MacSwan

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.