EU rules out funding Nabucco gas pipeline

Speaking in Budapest, Czech Prime Minister Mirek Topolánek, whose country currently holds the rotating EU Presidency, warned against alternative projects to Nabucco at the summit. 

"The Nabucco gas pipeline is not a matter involving just a few companies or a handful of countries. It is a strategic project crucial for the economic prosperity and political independence of the whole of Europe. I can claim without hesitation that Nabucco is a project of paramount importance for the freedom of the continent!," Topolánek exclaimed. 

He then outlined his vision for the EU's energy priorities. "In the short term, Ukraine has distanced further from Europe and its bond with Russia has become tighter. As a result, the emancipation process in this strategically important country is under threat." 

"In the medium term, the crisis has brought arguments in favour of the construction of the Nord Stream and South Stream gas pipelines. These routes bypass Ukraine (as well as Central Europe) while maintaining the EU's high energy dependency on Russia. This is a direct threat to the Nabucco project and as such a potential means of realistically diversifying Europe’s gas sources could be lost." 

In the longer term, Topolánek said "the course taken by the crisis and Europe’s apparent vulnerability serve as a warning regarding the global competition for gas and other energies among the countries of Southeast Asia, India, China, Japan and Europe. In the future, Europe must speak with one voice and maintain a clear vision of its energy policy. My primary objective as President of the European Council is to lay the foundations of such a common policy and such a common vision."

Speaking at the summit, Turkish Energy Minister Hilmi Güler stressed his country's experience in realising energy projects, saying Turkey had already help build the Baku-Tbilisi-Ceyhan and the Baku-Erzurum pipelines. 

Güler offered a helping hand to European countries, saying: "We can even use our present network to start the Nabucco project." He also insisted on a Caspian Development Corporation that "would secure the necessary gas supplies for Turkey as well as for Europe". 

Romania keen on South Stream 

Romania, one of the potential Nabucco transit countries, is also in favour of Gazprom's South Stream pipeline, EurActiv Romania writes today. South Stream was not initially to cross Romanian territory, but Gazprom recently suggested that it should. However, as Romanian President Traian Basescu recently stated, Romania would prefer Nabucco to be built first. 

"As soon as we finish Nabucco, we are in favour of South Stream coming across our country," Basescu was quoted as saying. 

Bulgaria insists on European financing of Nabucco 

Bulgarian Prime Minister Sergei Stanishev was quoted by Focus agency as saying that Bulgaria and Hungary will ask the EU to fund the implementation of Nabucco. The Sofia Echo quoted Stanishev as saying that the Nabucco project would be a top issue at the European Council summit on 19-20 March 2009. 

Stanishev and his Czech colleague Mirek Topolánek, in his capacity as holder of the EU presidency, discussed a proposal to build a liquefied gas terminal off the Greek port of Kavala and link it to Bulgaria at Dimitrovgrad. The two prime ministers also discussed the common European energy policy and lessons learned from the gas crisis. 

Azerbaijan committed to the EU pipeline

Azerbaijan, a key potential supplier for the Nabucco natural gas pipeline, remains a supporter of the project and calls on participants to move the project forward, President Ilham Aliyev said on Tuesday. 

"As far as Nabucco is concerted, Azerbaijan has always been supportive to this project and today once again we'd like to declare that we continue to support," Aliyev told a conference on the project. 

Philippe Maystadt, president of the European Investment Bank, expressed interest in the project, but warned that more information would be needed to secure financing, agencies reported. The Financial Times wrote that EIB is prepared to finance up to 25% of Nabucco's cost, a commitment of more than 2Bn euros.