By Amie Ferris-Rotman
MOSCOW, Oct 23 (Reuters) - Europe will cut dependence on gas imports from Russian monopoly Gazprom <GAZP.MM> over the next decade by boosting supplies of nuclear energy and Central Asian gas, the European Union's top energy official said on Tuesday.
European Commissioner Andris Piebalgs said that agreeing on the right price with new energy suppliers was the main challenge for the bloc, which was otherwise on a firm course towards diversifying supply.
A cornerstone of its strategy is the planned Nabucco pipeline, designed to bring gas from Azerbaijan and Central Asia to Europe via Turkey, bypassing Russia.
"What will happen over the next 10 years is that the European Union will be more diversified. We will have the enforced corridor of Nabucco, more nuclear power and solid infrastructure and technology," Piebalgs told Reuters.
Gazprom, the world's largest gas producer, supplies a quarter of Europe's gas and plans to increase deliveries to more than 200 billion cubic metres over the next decade, from 150 bcm, after building new pipelines.
Piebalgs said the pattern of supply would change little over the next five years, but would look different a decade from now.
"I believe in 10 years' time the European Union will rely significantly less on Russian gas," he said. "The European Union is constantly developing ways of using gas and building new infrastructure."
PIPELINES
The Nabucco pipeline project has stalled on disagreements between potential partners and problems bringing Azeri gas production fully on stream.
Gazprom has said its participation in the project is the only way to secure Nabucco, as the project would otherwise lack sufficient gas reserves.
Gazprom has also proposed building the South Stream pipeline, which would run under the Black Sea and via Bulgaria, competing directly with Nabucco.
Piebalgs said he was chiefly concerned with matter of price rather than with the political implications of these projects.
"Geopolitics do not worry me. It is price development that worries me," he said before meeting Russian Energy Minister Viktor Khristenko in Moscow.
The two officials are set to discuss a package of measures to limit major energy producers from owning transportation and distribution assets in the European Union, part of a wider EU policy to encourage competition in the sector.
Gazprom, eager to broaden its activities and enter distribution in Western Europe, does not want to be constrained by this policy. The company and Russian officials have opposed the measure, saying Moscow could retaliate by further limiting access of Western companies to Russian energy resources.
EU officials have said the new initiative was logical and that Russia itself was not allowing foreign companies to invest in its massive oil or gas pipeline systems.
"The Russian reaction to the package was very moderate. But in my view, Russia and the EU will both give it a try," said Piebalgs. ((Reporting by Amie Ferris-Rotman, writing by Dmitry Zhdannikov, editing by Anthony Barker + 7 495 775 12 42, dmitri.zhdannikov@reuters.com))
Keywords: EU RUSSIA/PIEBALGS
