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Embassy Row

By James Morrison
May 7, 2008

Pipe dreams

The controversy over supplying Europe with enough natural gas to keep it warm in winter has gotten so complicated that Hungary appointed a diplomat with the rank of ambassador to come to Washington to defend its position on the many competing transcontinental pipeline plans.

Mihaly Bayer, holding the title of ambassador-at-large, yesterday told Embassy Row that Hungary has been unfairly criticized for supporting a new Russian pipeline project that some critics fear could threaten the profitability of a European Union pipeline plan called Nabucco.

The EU project, still in the planning stages after four years, is an attempt to mitigate reliance on Russia, which currently supplies 25 percent of the 600 billion cubic meters (bcm) Europe uses annually. In Hungary, 80 percent of its annual consumption of 14.4 bcm of natural gas comes from Russia. Critics accuse Moscow of using its vast natural gas and oil reserves to advance its geopolitical ambitions. Nabucco would tap natural gas from the Middle East and Central Asia.

"We are really committed to the Nabucco project," Mr. Bayer said. "Our clear intent is to give a push to this project."

He defended his government's decision to support Russia's new South Stream project, which would serve the same Central and Eastern European markets as Nabucco and deliver the same amount of natural gas, 31 bcm a year.

"Any sane government, any sane person will try to find diversity," he said. "It's easy to say that Hungary has defected [from Nabucco] and taken sides with the Russians, but let's be serious."

Mr. Bayer said his government is not concerned about the potential of political pressure from Russia to support its global policies.

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