European Union to push for Nabucco gas line from Caspian
Fri, 9 January 2009
THE European Union will push harder for the pipeline to carry gas from the Caspian Sea region to Europe by-passing Russia, a senior EU diplomat said on 3 December. Russia’s war with Georgia underscores the need to step-up preparations for the prospective Nabucco pipeline, EU special representative Pierre Morel said after meeting with the leader of gas-rich Turkmenistan, President Gurbanguli Berdymukhamedov. “I was able to confirm to the president that the EU believes that we need to strengthen efforts on the construction of Nabucco,” Mr Morel told reporters. “Concrete steps in that direction will be in the coming months, in early 2009.”
The Nabucco pipeline, the plans for which hare supported by the US and the EU, would ease Europe's reliance on Russian energy. The EU gets about 30% of its oil, and about 40% of its gas imports, from Russia. "President Berdymukhamedov's overtures to Azerbaijan are a very promising step that could determine the future of the southern energy transportation corridor," Mr Morel said, referring to Nabucco. Mr Morel went on to say that he had offered Berdymukhamedov guarantees the European Union is working with Western energy companies to develop long-term proposals to assist in developing Turkmenistan's huge hydrocarbon resources.
Turkmenistan estimates its total gas reserves to be over 20 trillion cubic meters, and most of its exports currently go through Russia. Widespread scepticism about the Turkmen evaluation were mitigated earlier this year when British auditing company Gaffney, Cline and Associates reported that its independent investigations confirmed the country may hold the world's fourth-largest natural gasfield. Doubts remain, however, over whether the former Soviet republic will be able to satisfy all existing obligations and seal new contracts with Western partners. Turkmenistan has already committed to exporting 62bn cum/yr of gas to Russia under a 25-year contract, and it also has agreed to provide China with 49.6bn cum/yr beginning late next year; an additional 9.5bn cum/yr is sent to Iran.