European Forum

Turkey, EU countries sign Nabucco major gas deal

Today leaders of Turkey and four EU countries signed a landmark agreement that is aimed at reducing Europe's reliance on Russian energy. Turkish Prime Minister Tayyip Erdoğan and his counterparts from Austria, Bulgaria, Hungary and Romania signed the intergovernmental deal to allow the EU- and U.S.-backed Nabucco pipeline to cross their territory. Germany is also part of the consortium working on the pipeline, but it does not have a transit role.

A quarter of all the natural gas used in Europe, currently comes from Russia, with several southern European countries depending almost exclusively on Russian supplies. EU officials insist Nabucco's intention is not to look for a fight with Moscow, but they make no secret of the fact that Russia's reputation as a reliable supplier has seriously declined since repeated gas spats with Ukraine. Therefore, finding reliable alternatives is now an EU priority and all hopes are set on the Nabucco project.

The 3,300 kilometre pipeline, long delayed by lack of commitment from both suppliers and investors, is planned to become operational in 2014 at an estimated cost of 7.9 billion euros (USD10.9 billion), and a capacity to pump 31 billion cubic meters of gas from the Caspian Sea to Austria via Turkey and the Balkans, bypassing Russia. European Commission spokesman Tarradellas said the South Caucasus region will be key to Nabucco's long-term prospects, from the growing importance of Azerbaijan as "the origin of the first gas" to the "very important" Georgia as a "natural transit country." Given the mounting geopolitical risks in the South Caucasus, however, EU decision-makers are exploring alternatives as well, meaning for instance the massive reserves of the Central Asian states.

Erdoğan praised the deal as a "historic moment". "Nabucco will provide energy security to Turkey, to southeast Europe and to Central Europe. Nabucco is thus a truly European project," European Commission Chief Jose Manuel Barroso said. "Turkey and the EU have tackled together a common challenge: the security and diversification of their energy supplies." Erdoğan said that “the pipeline ‘will elevate Turkey to a significant position’ in the European energy security and help boost his country’s struggling EU membership bid”. Also Barroso praised Turkey’s role, saying the project "could open the door to a new era in relations between Turkey and the EU, and beyond."



Sources: Turkish Daily; Euronews; RadioFreeEurope/Radio Liberty