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OIL AND GAS
Europe can emerge strong with right energy steps, EC president says
by Daniel J. Graeber
Brussels (UPI) May 22, 2013


Norwegian plant processing gas for Europe closed after gas leak
Stavanger, Norway (UPI) May 22, 2013 - Part of a natural gas facility at the Norwegian port city of Karsto was closed down following a gas leak, Norwegian energy company Statoil said.

The company said it mobilized an emergency response team to respond to evacuation alarms at the facility north of Stavanger. All 445 employees near the incident were able to return to their work obligations about two hours after the alarms went off. No injuries were reported.

"The part of the facility affected has been depressurized and closed down," the company said in a statement Wednesday. "Statoil will investigate the incident thoroughly to ascertain its immediate and underlying causes."

The Karsto processing facility receives natural gas from the Norwegian and North Seas before sending it on to European consumers.

Norway is the largest oil producer and the third-largest natural gas producer in Europe. It supplied members of the European Union with about 21 percent of their gas needs last year, just behind Russia.

There was no comment on the incident from Norwegian state-owned gas transit company Gassco, which operates the Karsto facility. Statoil is the technical service provider.

If Europe can react well to energy woes tied to Ukraine, energy security will be stronger than ever before, the European Commission president said in Brussels.

President Jose Manuel Barroso spoke to delegates at a European energy security conference in Brussels, saying that addressing the issue will test the resolve and determination of members of the European Union.

A crisis that spilled out of Ukraine's uprising in November and subsequent tilt toward the West has put the European energy sector at risk. Russian energy company meets about a quarter of Europe's needs, but the bulk of those supplies run through Ukraine. Mounting debt in Ukraine means it can't pay its gas bills and Russia has said it may cut supplies by June.

In the past, Barroso said, European leaders have been lax on addressing the issue. Europe, however, imports more than 60 percent of its natural gas needs and almost 90 percent of the oil it consumes.

"Reducing energy demand is a fundamental precondition for limiting our energy dependence," he said.

European member states are called to increase energy efficiency by 20 percent from a 1990s benchmark by 2020. European energy policy also calls on a greater share of renewable energy on the region's grid.

"If we agree on these priorities and maintain the momentum that resulted from the Ukrainian wake-up call, Europe will come out of this crisis stronger, more united and more secure than we were before," the president said.

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