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Europe gas pipeline deal agreed Europe gas pipeline deal agreed
(39 minutes later)
Four European Union countries and Turkey have signed an agreement to construct the long-planned 3,300km Nabucco natural gas pipeline.Four European Union countries and Turkey have signed an agreement to construct the long-planned 3,300km Nabucco natural gas pipeline.
Once completed, the line will bring up to 31 billion cubic metres of gas a year from the Caspian and the Middle East across Turkey and into Europe.Once completed, the line will bring up to 31 billion cubic metres of gas a year from the Caspian and the Middle East across Turkey and into Europe.
It will give an important alternative energy supply to Russia, which already meets 30% of Europe's gas needs.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.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".Turkey's Prime Minister Recep Tayyip Erdogan said deal was an "historic moment".
Long-running projectLong-running project
The five countries - Turkey, Romania, Bulgaria, Hungary and Austria - have been working on the Nabucco project with the European Commission for seven years now.The five countries - Turkey, Romania, Bulgaria, Hungary and Austria - have been working on the Nabucco project with the European Commission for seven years now.
But Monday's decision to sign the deal has still come as a surprise. See Nabucco's planned route See Nabucco's planned route
To begin with there is still no clear idea as to what has been agreed. But Monday's decision to sign the deal has still come as a surprise, said the BBC's David O'Byrne in Ankara.
Turkey and the European Commission are still at loggerheads over how much gas Turkey will be able to take from the line, with Ankara claiming that it might be another six months before a final agreement is reached. He said that Turkey and the European Commission were still at loggerheads over how much gas Turkey would be able to take from the pipeline.
Our correspondent also said that it remained uncertain which countries would supply gas to the Nabucco scheme.
Following the signing, Mr Erdogan said that the legal framework for the construction of the pipeline would now be agreed within six months.
"The more steps we take [on realising the project], the more the interest of supplier countries will grow," he said.
Supply issuesSupply issues
More worrying still, Nabucco still has no guaranteed supply of gas. Azerbaijan will be the main source of Nabucco's gas when the pipeline is opened, due by 2014.
Iran, Iraq, Kazakhstan, Turkmenistan and Egypt are all considered potential suppliers in the long term. However, two weeks ago, the country agreed to sell some of its gas to Russia, a move many understood as a warning to the Nabucco partners to sort out their differences or look elsewhere.
Currently though, only Azerbaijan is in a position to supply the 15 billion cubic metres a year the line needs if it is to be constructed as planned by 2014. Iran, Iraq, Kazakhstan, Turkmenistan and Egypt are all considered potential suppliers to Nabucco in the longer term.
But two weeks ago, Baku agreed to sell some of that gas to Russia, a move many understood as a warning to the Nabucco partners to sort out their differences or look elsewhere. Meanwhile, Russia is planning two of its own new gas pipelines to Europe, the Nord Stream, which will run direct from Russia to Germany under the Baltic Sea, and the South Stream, which will run from southern Russia under the Black Sea to Bulgaria.
In the same way, Monday's signing ceremony is being seen as largely an attempt to persuade Baku that the Nabucco partners can reach an agreement, on some issues at least.
At the same time, Russia is planning its own new gas pipeline to Europe, the Nord Stream, which will run direct from Russia to Germany under the Baltic Sea.
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Are you in any of the countries linked to the gas pipeline deal? How effective will it be? Will it reduce those countries' dependence on Russia for their natural gas supply? Send us your comments using the form below.Are you in any of the countries linked to the gas pipeline deal? How effective will it be? Will it reduce those countries' dependence on Russia for their natural gas supply? Send us your comments using the form below.
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