Romania, Austria, Hungary, Bulgaria, Turkey sign Nabucco pipe deal

"This pipeline project is aimed at ensuring energy safety in the region and in EU, at market conditions and without political pressures", Romanian PM Emil Boc said at the signing ceremony of the inter-governmental accord.

The prime ministers of Romania, Austria, Hungary, Bulgaria and Turkey signed yesterday in Ankara the intergovernmental accord for the Nabucco project, the gas pipeline aiming to reduce European Union dependence on Russian gas. The document was also signed by European Commission's president Jose Manuel Barroso."Nabucco pipeline project is aimed at ensuring energy safety in the region and in the European Union, at market conditions and without political pressures", Romanian Prime Minister, Emil Boc, said. Before signing Nabucco intergovernmental agreement, PM Boc said the energy, like any other commodity, should be traded based on the market economy principles and protected from political pressures. "Nabucco project is not planned to be against anybody, as it is open to everyone, to the benefit of European citizens," Boc added.

During a government meeting on Sunday evening the Government approved the mandate for PM Emil Boc to sign the Nabucco gas pipe project agreement.

Turkish PM wants Nabucco to transport Iran gas

Turkish Prime Minister Recep Tayyip Erdogan, hosting and moderating the event, said the project would provide reliable transportation of natural gas from the Caspian and Middle East, including Azerbaijan, Turkmenistan, Iraq and Egypt. Turkey's PM wants Iranian gas to be transported to Europe via the planned Nabucco pipeline "when conditions allow", despite U.S. opposition. He said they were looking forward for Iran and Russia joining the project. It will give an important alternative energy supply to Russia, which already meets 30% of Europe's gas needs. But much still remains to be agreed on, not least where the gas will come from. Turkey's Prime Minister Recep Tayyip Erdogan said deal was an "historic moment".

Azerbaijan is interested in the Nabucco pipeline project and the gas-rich Caspian country wants diversification of its energy export routes, Azerbaijan's industry and oil minister Natik Aliyev said on Monday.Egypt's oil minister Sameh Fahmy also told a gathering of European Union and regional leaders in Turkey to sign the Nabucco project that a planned Arab gas pipeline could be a potential source of gas for Nabucco. Austrian Prime Minister Werner Faymann spoke about the importance of the project and expressed confidence that it would be carried out successfully. Iraq's Prime Minister Nuri al-Maliki said on Monday Europe can receive 15 billion cubic metres of Iraqi gas via Turkey. Maliki made his comments during a gathering of European Union and regional leaders in Turkey to sign the planned Nabucco pipeline project, but it was not immediately clear if the sale of 15 billion cubic metres of Iraqi gas was for Nabucco. He did not give a timeframe. Maliki's comments came a day after Iraqi government spokesman Ali al-Dabbagh said Iraq does not have any surplus gas to sell via U.S-backed Nabucco pipeline now.

Bulgarian Prime Minister Sergei Stanishev said his country was loyal to its efforts towards the realization of Nabucco project. Hungarian Prime Minister Gordon Bajnai emphasized the importance of the project for his country and Europe. He said the European countries are in the center of world financial crisis and faced with the difficulties to carry out the projects. US Special representative for Eurasian Energy Richard Morningstar and US Senate Foreign Relations Committee Republicans leader Richard Lugar said they hoped that Azerbaijan and Turkmenistan would also supply the pipeline alongside with Iraq. The agreement signing is one of the last steps before starting the procedures to attract finance and start project construction works. The project is developed by the Nabucco Gas Pipeline International consortium, formed by Transgaz Medias, Austria's OMV, Hungary's MOL, Bulgaria's Bulgargaz, Turkey's Botas and German RWE. The pipeline will bring gas to Central Europe from Central Asia via Turkey. According to latest estimations, Nabucco will need investments worth some EUR8 billion. Nabucco's capacity might rise to 30 billion cubic meter of natural gas per year. Construction works are due to start in 2011 and transit through the pipe is programmed to start in 2014.

50pc of the pipeline's capacity will be reserved for the shareholders

The agreement will provide a stable legal framework for the next 50 years and it has now also been firmly agreed that 50% of the pipeline's capacity will be reserved for the shareholders and the remaining 50% offered to third-party shippers. According to a press release, of the Nabucco Gas Pipeline official site, at the same time, the Inter-Governmental Agreement (IGA) lays down a standard tariff methodology. These conditions will apply for 25 years after the pipeline commences operation, and guarantee equal access for all market participants. Consequently the IGA provides strong comfort to the potential gas supply countries who are considering selling gas to potential shippers of Nabucco.

Nine O`Clock