Europeans commit to Nabucco pipeline
24 September 2007
In an effort to reduce dependence on Russian gas, the European Union endorses the development of the Nabucco gas pipeline.
At a conference in Budapest, Hungary on September 14-15, the European Union (EU) moved forward on securing the development of the Nabucco Gas pipeline. The pipeline would start in eastern Turkey and run through Bulgaria, Romania, Hungary and Austria for 3,300 kilometers, with a projected capacity of 30-35 billion cubic meters of gas annually.
Russia is the world's largest producer of gas and supplies Europe with 25-40% of its gas energy needs. The Nabucco pipeline is not only a demonstration of a common European energy policy, but also an effort to reduce dependence on Russian gas. The pipeline is estimated to cost about €5 billion, 70% of which is expected to come from bank loans.
The European Investment Bank (EIB) is expected to take a lead in financing, while the European Bank for Reconstruction and Development (EBRD) is currently in the negotiating stage. Construction is expected to begin in 2009, and gas flow by 2012.
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