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Greece & Turkey Sign Pipeline AgreementAn intergovernmental agreement for a natural gas pipeline betweenGreece and Turkey was signed in Thessaloniki by Greek Minister ofDevelopment Akis Tsohatzopoulos and Turkish Minister of Energyand Natural Resources Mehmet ∏ilmi Guller. The natural gas pipeline,which will connect the two countries, is slated to be 285 kilometerslong, spanning from Karatsabei, Turkey to Komotini, Greece. Its officialname is Interconnector Turkey-Greece (ITG). The portion of thepipeline on Greek territory is to be 85 kilometers long and an internationalprocurement has been announced. for the construction ofthe pipeline between Alexandroupolis and Kipi Evrou. It is estimated that the pipeline willstart operating by the end of 2005. Its initial annual capacity will be 3.5 billion cubic meters,with an expansion capacity of up to 11 billion cubic meters. The total cost is estimated at ú250million and the cost for Greece should total ú118 million, 29% of which will be paid by the EuropeanUnion and another 29% by the Greek government through the Public Investments Program.The remaining 42% will be funded by DEPA (the Public Natural Gas Corporation).Energy: Next Engine of Growth?Many analysts are suggesting that theenergy sector may become the nextnew "hot" growth engine of the globaleconomy, much like the role technologyplayed in worldwide economicgrowth during the last 20 years. Asthe global economy suffers from unevendevelopment and energy needsare increasing in every corner of theworld, experts believe that massivedemand accompanied by an unstablesupply will result in vast amounts of16%41%22%15%6%research and development to improvetoday's energy technologies and todevelop new ones. Experts cite China,which has been growing at over 8%annually, as just one example of amarket that will increase its energyconsumption dramatically. Since analystssee oil as the dominant sourceof energy for many decades to come,efforts to improve extraction methodsand overall fuel efficiency will beparamount to the oil industry.Gross Domestic Energy Consumptionin the EU and GreeceEU-15Ellada35%60%0%0%5%Solid fuels Oil and oil Products Natural gas Nuclear RenewablesRecyclingCars, batteries, and mineral oil arenow on the list of products thatwill have to be recycled accordingto a presidential decree signed byEnvironment, Town Planning, andPublic Works Minister VassoPapandreou. In an effort to stemthe flow of waste filling uplandfills and conform to EUlegislation, Greece is implementinga new series of measures that willrequire consumers return a widevariety of goods for recycling. TheMinister is expected to add cartires, electrical appliances,electronic goods, and buildingrubble to the list in order toreclaim up to 85% of waste fromthese products.Advice to OPEC:CautionThe International Energy Agency(IEA) urged the OPEC oil cartelto be cautious in reducing oilsupply, saying prices were still toohigh for companies to rebuildstocks. With Iraq not yet exportingand no new supplies entering themarket, IEA chief Claude Mandilsaid, "I think OPEC should be verycautious before taking strongdecisions on output." Mr. Mandilalso said stocks are beginning toincrease but "prices are still toohigh for that."SPRING 2003 AEGEAN NEWS 7