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ANKARA (AFP)--The leaders of four European Union countries and
Turkey met here Monday to sign a landmark deal to build a gas
pipeline reducing European reliance on Russia amid lingering
questions on who will supply the gas.
Turkish Prime Minister Recep Tayyip Erdogan hosted the
gathering, attended also by his counterparts from Austria,
Bulgaria, Hungary and Romania, through which the 3,300-kilometer
Nabucco pipeline would pass.
The U.S.-backed project, long delayed by lack of commitment from
suppliers, is planned to become operational in 2014 at an estimated
cost of EUR7.9 billion, with a capacity to pump 31 billion cubic
meters of gas from the Caspian Sea to Austria via Turkey, bypassing
Russia.
In a sign of the importance attached to the project, European
Commission chief Jose Manuel Barroso, Prime Minister Nuri al-Maliki
of potential supplier Iraq and U.S. special envoy for Eurasian
energy Richard Morningstar attended the gathering.
Erdogan hailed the deal as a "historic moment," but stressed
"the job is not done with the signing - on the contrary it just
begins."
A quarter of all natural gas used in Europe currently comes from
Russia, with several southern European countries depending almost
exclusively on Russian supplies.
The Nabucco projects aims to avoid a repetition of the cut-offs
which have recently disrupted supplies to Europe amid freezing
temperatures.
"Russia is expected not to hinder directly or indirectly the
Nabucco project," Bulgarian Prime Minister Sergey Stanishev said,
urging the signing of complementary deals "in the shortest possible
time."
The conduit is in direct competition with Russia's South Stream
project, which will carry Russian gas through Bulgaria to Western
Europe under the Black Sea.
Nabucco's primary potential supplier Azerbaijan, represented by
its energy minister at Monday's meeting, insists it has enough
reserves for the conduit, but last month it signed a deal to export
gas to Russia starting in 2010, raising concerns among Nabucco
proponents.
The project appeared to get a boost on Friday when Turkmenistan
President Gurbanguly Berdymukhamedov said his country was prepared
to supply Nabucco with gas.
Turkmenistan, along with Kazakhstan and Uzbekistan, had held off
their support at a meeting in Prague in May.
Erdogan singled out Azerbaijan, Turkmenistan, Iraq and Egypt as
countries seen as priority suppliers, but added that Iran and
Russia might also join "when conditions allow" in the long
term.
However, Iran's participation is opposed by the E.U. and the
U.S.
Officials say the signing of the intergovernmental agreement
Monday would serve to boost the project's credibility and lead gas
exporters to think seriously about supplying the pipeline.
Two European banks have expressed readiness to finance the
project, but analysts say securing the cost could be difficult amid
the global economic slowdown and uncertainty over suppliers.
The signing of the agreement has been delayed also by Turkish
demands to use 15% of Nabucco's gas for domestic use or even for
re-export.
E.U. officials said Ankara's concerns were to be addressed by an
arrangement, under which the pipeline would operate both ways,
giving Turkey access to European stockpiles in times of need.
Erdogan, whose country is seeking to join the E.U., said the
pipeline "will elevate Turkey to a significant position" in
European energy security and help boost his country's struggling
membership bid.
Barroso praised Turkey's role, saying the project "could open
the door to a new era in relations between Turkey and the E.U., and
beyond."
"What we are witnessing today is a powerful illustration of the
strategic bonds between Turkey and the E.U.," he said.
The pipeline's shareholders are Austria's OMV AG (OMV.VI),
Turkey's Botas, Bulgaria's Bulgargaz, Hungary's MOL Nyrt (MOL.BU),
Romania's Transgaz and Germany's RWE AG (RWE.XE).