ANKARA – EU countries and Turkey yesterday signed a transit deal for
the Nabucco gas pipeline, aimed at cutting Europe’s energy dependence on Russia, a major political step backers say
will boost the project.
Transit countries Turkey, Bulgaria, Romania, Hungary and Austria signed the accord for the
7.9-billion-euro ($10.99 billion) European Union and United States-backed
project which aims to supply Europe with gas from the Caspian and Middle East.
The agreement irons out
details over transit and tax issues for hosts of the pipeline.
“The Nabucco project is
being labeled a pipe dream,” Turkish Prime Minister Recep Tayyip Erdogan told a
gathering of Nabucco partner countries and regional countries in Ankara. “This project will be a success
story that will prove the doubters wrong,” Erdogan said.
The signing of the
long-delayed transit agreement is a major boost for a project that has been
marred by political infighting and is still dogged by questions over supply and
financing.
Progress of a rival Russian
plan has also added doubts to the feasibility of Nabucco, which has been unable
to find sufficient gas to put through the pipeline.
But yesterday, backers
sought to dispel such doubts.
“We are starting to
confound the skeptics, negotiations once seemed irrevocably blocked, but now we
have an agreement and I believe this pipeline is inevitable, not impossible,”
European Commission President Jose Manuel Barroso said.
“Politically it is all
wrapped up. There is nothing more to be done because now we are at a totally
commercial stage that hinges on the open season... and the construction of the
pipeline,” EU Energy Commissioner Andris Piebalgs said.
The EU has supported the
project as a way of reducing its reliance on Russian gas. A row over prices and
debt between Moscow and Kiev last winter led to Russia cutting off supplies into Ukraine, including those destined for Europe.
No concrete supply deals
have yet been signed for Nabucco, which plans to pump 31 billion cubic meters
of natural gas to Europe by 2014. But the Vienna-based consortium is looking at Azerbaijan and maybe Russia and Turkmenistan as sources for gas.
Werner Auli, the head of
Austrian firm OMV’s gas and power division, said Azeri and Iraqi supplies
looked promising and tenders to buy capacity should start in the fourth quarter
of this year.
Besides Austria’s OMV, Bulgaria’s Bulgargaz, Turkey’s Botas, Germany’s RWE, Hungary’s MOL and Romania’s Transgaz are partners in the
pipeline project.
Azerbaijan’s Industry and Oil Minister Natik Aliyev said Azerbaijan was interested in Nabucco and that
his Caspian country wanted diversification of its energy export routes.
Erdogan also said he wanted
Iranian gas to flow through the pipeline – despite strong US objections.
“We desire Iranian gas to
be included in Nabucco when conditions allow,” Erdogan told the gathering.
US special energy envoy Richard Morningstar on
Sunday reiterated Washington’s opposition to possible use of
Iranian gas in Nabucco until Washington normalizes relations with Tehran. The two are at odds over Iran’s nuclear program.
Iraq’s Prime Minister Nuri al-Maliki said Europe could receive 15 billion cubic
meters of Iraqi gas via Turkey, but it was not immediately clear
if he was referring to Nabucco.
Erdogan also said he
believed Russian gas could be transported to the European markets via Nabucco. Nabucco
is competing with the rival Russian-backed South Stream project to feed growing
European consumption.
US
calls deal ‘significant milestone’
WASHINGTON (AFP) – The United States hailed as a “significant milestone”
a deal signed yesterday by Turkey, Bulgaria, Romania, Hungary and Austria to build a gas pipeline aimed at
reducing European reliance on Russia. “This agreement is a significant
milestone in achieving our shared vision of opening a new energy corridor that
will bring Caspian gas to Europe,” State Department spokesman Ian Kelly said. “Energy security is gained
through diversity – diversity of energy sources, delivery routes and consumer
markets and the Nabucco pipeline is an example of that diversity.”
(as published in the newspaper "KATHIMERINI", 14/07/2009)