EU says to spend €250 mln for Nabucco pipeline project

EU Commission announced Wednesday that it would spend 250 million Euros to Nabucco pipeline project that would reduce Europe's dependency on Russian gas.

EU says to spend €250 mln for Nabucco pipeline project

The EU commission which decided to support energy projects with the 3.5 billion Euros of the 5 billion Euros left over from the previous budget, also declared it would spare 100 million Euros for the ITGI- Poseidon pipeline project, between Greece and Italy, that would transfer the natural gas coming from Turkey to Europe.

EU is providing a total of 350 million Euros for the southern gas corridor.

The Nabucco project represents a new gas pipeline connecting the Caspian region, Middle East and Egypt via Turkey, Bulgaria, Romania, Hungary with Austria and further on with the Central and Western European gas markets.

The implementation of the Nabucco Project carries high importance for the European Union (EU) and Turkey.

The recent tension and disagreement between Russia and Ukraine on natural gas have forced EU countries to highly consider the Nabucco Project.

Turkey aims at purchasing 15 percent of the gas to be carried through the Nabucco Project.

The Nabucco pipeline length is approximately 3,300 km, starting at the Georgian/Turkish and/or Iranian/Turkish border respectively, leading to Baumgarten in Austria. 1,998 km of the pipeline goes through Turkey.

A considerable amount of the gas volumes, reaching Baumgarten, have to be further transported through Austria to the Central and Western European countries.

According to market studies, the pipeline has been designed to transport a maximum amount of 31 bcm/y.

Estimated investment costs including financing costs for a complete new pipeline system amount to approximately 7.9 billion Euro.

Last Mod: 28 Ocak 2009, 16:40
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