As Europe's natural gas production has declined in recent years, its vulnerability to imported natural gas has increased. A second aspect of Europe's energy security policies involves Europe's own fragmented internal energy market. Other key developments and possible alternatives to Russian natural gas are outlined below:
North Africa's large gas supplies could pose a credible partial alternative to Russian natural gas supplies. Context, Background, and Different Points of Views

		The U.S. Perspective

The primary focus of U.S. energy policy in Europe has been on establishing a southern corridor route for Caspian, Central Asian, and Middle Eastern natural gas supplies to be shipped by pipeline to Europe. The George W. Bush Administration sharply criticized Russia for using energy supplies as a means to gain political influence over other countries and urged European countries to diversify supply sources. The Obama Administration has also called for diversification and opposed the use of energy as a political weapon. Europe's dependence on natural gas imports, especially from Russia, is a particular concern and a focal point of diversification efforts. According to a 2014 study commissioned by members of the European Parliament, state-controlled Russian energy company Gazprom controls large and even majority shares of energy trading, distribution, pipeline, and storage facilities in many Central and Eastern European countries, and has significant stakes in facilities in Western European countries, including Germany, Austria, and the UK. European Response: Toward a European Energy Union? Over the medium- to long-term, Europe could accelerate ongoing efforts to further develop pipelines from the Caspian region that bypass Russia, as well as explore the possibility of additional energy sources in Europe such as in the eastern Mediterranean. Integrating Europe's Internal Energy Market

A key component of the EU's energy strategy has been to liberalize and better integrate the European energy market. Russia's Role18

The Russian natural gas industry is one of the most important in the global energy market. Russia's "National Security Strategy to 2020," released in 2009, stated that "the resource potential of Russia" is one of the factors that has "expanded the possibilities of the Russian Federation to strengthen its influence in the world arena." These include trying to sign long-term contracts with Azerbaijan and Central Asian states to lock up supplies sought by the Europeans; lodging legal objections to the proposed Trans-Caspian Pipeline between Azerbaijan and Turkmenistan, which would be a key link in providing Caspian gas to Europe; and attempting to coordinate natural gas export policies with other leading producers such as Qatar and Iran, perhaps with hopes of eventually creating a "gas OPEC" out of the GECF. As noted above, Central Asia has been a focus of U.S. and European efforts to provide Europe an alternative to Russia for natural gas through the southern corridor. It is also important to note that Azerbaijan is to supply Turkey with an additional 6 BCM of natural gas to help Turkey meet its growing natural gas demand. Plans have faltered in recent years; a 2016 meeting in Kazakhstan may provide the regional consensus needed to move the project forward. Egypt, a historic natural gas supplier to Europe, did not export any natural gas in 2014 because of its internal issues. Nevertheless, Libya may have the greatest potential to increase natural gas exports to Europe when it stabilizes, which may not happen for a long time. Some of Europe's larger natural gas companies have major financial interests in maintaining Russian supplies and do not see a problem in depending so much on Russia. Although supplying natural gas to Europe from the Caspian region and Central Asia has been a goal of multiple U.S. Administrations and the EU, it is far from being achieved in volumes significant to counter Russian exports. Redirecting U.S. and European efforts from Central Asia to MENA as an alternative to Russian natural gas supplies could improve the chances of more natural gas reaching Europe in the short run.
As a major energy consumer, Europe faces a number of challenges in addressing future energy needs. Among these challenges are rapidly rising global demand and competition for energy resources from countries such as China and India, tensions with Russia, persistent instability in the Middle East, a fragmented internal European energy market, and a growing need to shift fuels in keeping with European climate change policy. As a result, energy supply security has become a key concern for European governments and the European Union (EU).
A key element of the EU's energy supply strategy has been to shift to a greater use of natural gas, even though in recent years natural gas use has declined. Europe as a whole is a major importer of natural gas. Russia remains one of Europe's most important natural gas suppliers, regaining the top spot as Europe's biggest natural gas supplier in 2014. Europe's natural gas consumption is projected to grow while its own domestic natural gas production continues to decline. If trends continue as projected, Europe's dependence on Russia as a supplier is likely to grow. And, while it could be in Europe's interest to explore alternative sources for its natural gas needs, it is uncertain whether Europe as a whole can, or is willing to, replace a significant level of imports from Russia. Some European countries that feel vulnerable to potential Russian energy supply manipulation may work harder to achieve diversification than others.
Russia has not been idle when it comes to protecting its share of the European natural gas market. Moscow, including the state-controlled company Gazprom, has attempted to stymie European-backed alternatives to pipelines it controls by proposing competing pipeline projects and attempting to increase its influence with European companies by offering them stakes in those and other projects. It has attempted to dissuade potential suppliers (especially those in Central Asia) from participating in European-supported plans. Moscow has also raised environmental concerns in an apparent effort to hinder other alternatives to its supplies, such as unconventional natural gas, in parts of Europe.
Successive U.S. Administrations and Congresses have viewed European energy security as a U.S. national interest. Promoting diversification of Europe's natural gas supplies, especially in recent years through the development of a southern corridor of gas from the Caspian region as an alternative to Russian natural gas, has been a focal point of U.S. energy policy in Europe and Eurasia. The George W. Bush Administration viewed the issue in geopolitical terms and sharply criticized Russia for using energy supplies as a political tool to influence other countries. The Obama Administration has also called for diversification. Nevertheless, although supplying natural gas to Europe from the Caspian Region and Central Asia has been a goal of multiple U.S. Administrations and the EU, it is far from being achieved in volumes significant enough to counter Russian exports.
This report focuses on potential approaches that Europe might employ to diversify its sources of natural gas supply, Russia's role in Europe's natural gas policies, and key factors that could hinder efforts to develop alternative suppliers of natural gas. The report assesses the potential suppliers of natural gas to Europe and the short- to medium-term obstacles to those suppliers becoming credible, long-term providers. The report looks at North Africa, potentially the most realistic supply alternative in the near term, but notes that the region faces political, economic, and security instability and problems in the internal structure of the natural gas industry. Central Asia, which may have the greatest amounts of natural gas of any of the alternatives to Russia, would need to construct lengthy pipelines through multiple countries to move its natural gas to Europe.