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Poland defies Germany over Nabucco pipe

Published 18 March 2009
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Polish Prime Minister Donald Tusk said Central and Eastern European countries will push for the Nabucco gas pipeline project during an EU summit on 19-20 March in Brussels. The statement came as Germany refused to back public funding for the pipeline, which aims to reduce the EU’s dependency on Russian gas.

Diplomats confirmed today (18 March) that Germany opposes funding the Nabucco gas pipeline from a five-billion euro EU stimulus plan, which includes a controversial list of energy projects (EurActiv 17 March 2009). 

The Russian press hailed the development as a "victory for Russia" as Nabucco is widely perceived there as an US-inspired project hostile to Russian interests. "The EU has taken Nabucco off its priority list. In other terms, this means that the EU in fact supported the construction, in cooperation with Russia, of the projects 'South Stream"' and 'Nord Stream'," the daily Izvestiya wrote today. 

South Stream, a Gazprom-favoured alternative to Nabucco, would bring Russian gas to Italy under the Black Sea via Bulgaria, Greece, Serbia and Croatia. A branch of the pipeline would run through Serbia and Hungary to Austria, ending at the Baumgarten gas storage facility, the same hub that Nabucco plans to use. 

But Poland took the lead in trying to make Germany change its mind. As the Polish daily Dziennik reported, the country's Prime Minister Donald Tusk will attempt to convince EU leaders not to abandon Nabucco. 

"We have requested that this project be financed from a special fund of €5 billion," Polish European Affairs Minister Mikołaj Dowgielewicz is quoted as saying. The Polish request was supported by Romania, Austria, Hungary and Slovakia, Dziennik adds. 

Before the last extraordinary EU summit on 1 March, Tusk organised a mini-summit with his Eastern European counterparts. At this stage, the Polish Permanent Representation has received no instructions to organise a similar meeting, a spokesperson told EurActiv. 

Turkey ready to build Nabucco 

Asked to comment on the news coming from Brussels, Turkey's Energy Minister Hilmi Guler said his country is determined to build and even finance Nabucco. 

"Our aim is to complete this project. No matter where the resources are, the necessary requirements should be fulfilled if such a project is needed. I believe we will complete the project either with our own resources or with the help of others," said Guler, quoted by the daily Hurriyet

Background: 

The Nabucco pipeline project aims to decrease the EU's dependence on Russian imports by bringing Caspian gas to a hub in Austria via the Balkans. 

Azerbaijan is seen as the project's most likely first gas supplier, while in future, it would also bring supplies from the Middle East. The gas would be shipped to Europe via Turkey, Bulgaria, Romania and Hungary. 

The pipeline is scheduled to begin operating in 2014, but it is not yet certain that it will be built. Continued hesitation by the private sector to finance the project, not to mention the brief war between Georgia and Russia in August 2008, means that Nabucco faces an uncertain future (EurActiv 25/08/08). 

Officially, the European Commission refuses to admit to any setbacks. But the project faces many obstacles, including the planned rival South Stream pipeline supported by Russia's Gazprom. Recently, leading energy experts warned of a series of difficulties in implementing Nabucco in the wake of the Russia-Ukraine gas dispute (EurActiv 20/01/09). 

The Nabucco consortium comprises leading European energy companies: OMV of Austria, MOL of Hungary, RWE of Germany, Bulgargaz of Bulgaria, Transgaz of Romania and Botas of Turkey. But three consortium members - OMV, MOL and Bulgargaz - have already signed up to Gazprom's South Stream pipeline, raising questions about conflicts of interest, or indeed their commitment to Nabucco. 

Several EU governments, including Germany, France and Italy, which have close ties with the Kremlin as well as long-term gas contracts with Gazprom, are not convinced of the need for the new pipeline. 

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