EU countries sign gas pipeline agreement
Austria, Bulgaria, Romania and Hungary have signed an agreement with Turkey on the legal framework for the Nabucco gas pipeline, which is expected to decrease Europe's dependence on Russian gas.
Iraq has pledged to supply the pipeline with half of its capacity, without giving a detailed timeframe.
An inter-governmental agreement to have the Nabucco gas pipeline operational by 2014 was due to be signed on 13 July in Ankara, the European Commission announced recently (EurActiv 06/07/09).
Nabucco will bring Caspian gas to a hub in Austria via Turkey, Bulgaria, Romania and Hungary. The recent gas crisis between Russia and Ukraine has convinced decision-makers of the need to speed up the project (see EurActiv LinksDossier on 'Pipeline Politics').
Azerbaijan is seen as the project's most likely first gas supplier, while in future, it would also bring supplies from the Middle East. Supplies from Iraq are currently being considered, while in future Iran could also become an important supplier.
The Nabucco consortium comprises leading European energy companies: OMV of Austria, MOL of Hungary, RWE of Germany, Bulgargaz of Bulgaria, Transgaz of Romania and Botas of Turkey. But three consortium members - OMV, MOL and Bulgargaz - have already signed up to Gazprom's South Stream pipeline, raising questions about conflicts of interest, or indeed their commitment to Nabucco.
Meanwhile, Russia is stepping up efforts to start implementing its rival 'South Stream' project. The country's Energy Minister Sergei Shmatko recently announced that South Stream would more than double its planned capacity from 31 billion cubic metres per year (bcm/y) to 63bcm/y. Italy's ENI is Gazprom's main partner in 'South Stream'.
Turkey has used the Nabucco project as a bargaining chip with the EU. Ankara is also seeking to use 15% of all natural gas flowing through the pipe as part of the deal for letting it pass through Turkish territory (EurActiv 29/05/09).
After months of heavy negotiations, the signature was hailed as a significant step towards the construction of the pipeline, which will run from Turkey's eastern border through Bulgaria, Romania and Hungary to a gas hub in Austria.
Nabucco, with its capacity of 31 billion cubic metres, should provide Europe with an alternative to Russian gas after the January gas crisis between Russia and Ukraine.
