Pipeliners

07.11.2008 - [Neftegaz.RU] - European Energy Commissioner Andris Piebalgs said on Thursday he hoped Europe and Turkey would reach a deal early next year on transit terms to make the planned $12 billion Nabucco gas pipeline a reality. But he also admitted that the viability of the pipeline could be threatened by the energy deals that Russia is pursuing in the Caspian region. The long-delayed project is intended to carry 30 billion cubic metres (bcm) of Central Asian gas a year to Europe via Georgia, Turkey, Bulgaria, Romania and Hungary as part of a plan to reduce Europe's dependency on Russian gas. Hurdles to building Nabucco have included securing a deal with energy-import dependent Turkey, which analysts say has been dragging its feet at the bargaining table to win rights to import a portion of Nabucco gas for its own use. "We discussed the issue of supply security for Turkey. I believe we have enough gas in the region so that everybody could be satisfied," Piebalgs said in an interview with Reuters and two Turkish media. "The only issue is to find a way to accommodate the interests of the European Union, producer countries and Turkey." Piebalgs, who held talks in Ankara with Prime Minister Tayyip Erdogan, President Abdullah Gul and Energy Minister Hilmi Guler, said there was no disagreement over transit fees, but that Turkey was concerned about its own energy supplies. "Turkey ... doesn't want to see all the gas go from producer countries to the European Union," he said. European Commission officials had expected to reach a deal by the end of the year, but Piebalgs said Nabucco countries would now meet early next year to sign an intergovernmental agreement. Piebalgs, who left Turkey for Azerbaijan late on Thursday on the second leg of his trip, said he was confident Nabucco's participants would secure sufficient gas volumes to make the project viable. The pipeline is due to be operational by 2013, but before building can begin, its participants need commitments to provide at least 15 bcm a year. Azerbaijan could provide at least half of that, but the Russian gas monopoly, Gazprom , has also offered to buy Azerbaijani gas at European prices. "It is obvious Russia is also a very serious bidder. Russia could make a proposal that is better than ours," he said, adding: "The gas is not only Azerbaijani, but in the medium term it is also Turkmen gas and Iraqi gas." August's war between Russia and Georgia, one of the transit countries, increased doubts about the security of investing in the turbulent region. But Piebalgs said the EU was still committed to Nabucco and another pipeline project called ITGI. The ITGI pipeline is one day expected to carry 12 bcm of Caspian gas a year via Turkey and Greece and Italy. Both are key to the efforts of the 27-member bloc to reduce its reliance on Russian gas.