Europe gas pipeline deal agreed

by Babel-Fish | July 13, 2009 at 02:33 am

217 views | 28 Recommendations | 13 comments

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.

Oh this gives Russia a bloody nose as its ex-satellites Romania, Bulgaria, Hungary are part and parcel to this agreement. I love to be a fly on the wall in the Kremiline today. Putin will be cursing and thats for sure.

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Paschen

at 02:38 on July 13th, 2009

Well, that would be the third Gas pipeline build going to the EU now.

Another one is planned from France through Algeria, Mali and Nigeria.

Babel-Fish

at 02:44 on July 13th, 2009

Yes but this is the all important one as Russia has wanted to dominate the Caspian Sea basin. Russia also wanted to dominate the supply of gas and oil to Europe. Its going to be interesting in watching what Russia will do next and the response to this (as they will see it) dagger in the back.

Babel-Fish

at 02:38 on July 13th, 2009

And so the global chess game continues with a move made by the European Union, Russia can not declare a check mate or can she, in just one move?

albertacowpoke

at 02:43 on July 13th, 2009

It;s called commerce. I don.t think the EU wanted to be held hostage to gas and oil coming from Russia via the Ukraine. It will remove a bargaining chip from Russia;s tool box.

Babel-Fish

at 02:53 on July 13th, 2009

Totally correct but this could cause a big problem nearer to the source of the oil supply such as Georgia and Azerbaijan. Could be the fuel for Russian aggression? The news I thing is more important than it may seem at this moment, I fear that Russia will not sit back but cause problems in the Caspian Sea area. Its certainly put some fuel on the fire so to speak.

Babel-Fish

at 18:02 on July 13th, 2009

sara star

at 08:40 on July 13th, 2009

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 USA will try to block Iran from supplying. Russia as a supplier is not ruled out. Each of the 5 countries have a 16.7% stake in Nabucco.

—WHERE: Across the five signatory countries — from Ankara, Turkey, to Baumgarten, Austria — carrying gas from Central Asia to Western Europe.

—SUPPLIERS: Iraq, Egypt, Syria, and Turkmenistan said they were ready to offer gas. Azerbaijan and Kazakhstan have yet to confirm participation, while the U.S. says it will block Iranian participation until its relations improve with the West. Qatar may ship liquefied natural gas, while Russian gas supplies are not ruled out.

—BUILDERS: Consortium including BOTAS AS of Turkey, Bulgarian Enegy Holding EAD, MOL Plc of Hungary, OMV Gas & Power GmbH of Austria, RWE AG of Germany, and Transgaz SA of Romania. Each has a 16.67 percent stake in Nabucco Gas Pipeline International GmbH.

—WHEN: Construction of 2,050 miles (3,300 kilometers) to start in 2011. Operations to start in 2014.

Turkish Prime Minister Recep Tayyip Erdogan invited Russia and Iran on Monday to join the Western-backed Nabucco gas pipeline project intended to pump natural gas to Europe.

sara star

at 04:53 on July 13th, 2009

A quarter of all natural gas used in Europe currently comes from Russia, with several southern European counrtries depending almost exclusively on Russian supplies.

The Nabucco projects aims to avoid a repetition of the cut-offs in Ukraine which have recently disrupted supplies to Europe amid freezing temperatures.

Babel-Fish

at 05:54 on July 13th, 2009

Map of Proposed Pipeline

The map explains possibly the main reason behind Russian Georgia war. The problem now this agreement been signed we could see a new flare up in Georgia to disrupt the building of the pipeline. USA would of course prefer that Iran was taken out of the equation and thus would back up Georgia and their president as it did when Russia attacked Georgia.

What is Russia's next move to disrupt the idea of the pipe line, dealing with Iran is an easy task for Russia on just a promise of support etc. But to block the path of the pipeline through Georgia they would need to invade Georgia once again and occupy land within the path of the proposed pipe line. Its unfortunately very possible they will.

sara star

at 07:38 on July 13th, 2009

I hardly think Putin will bleed much. It is not a done deal yet.

Will they have enough gas? Turkmenistan, Azerbaijan are not on board, and the USA will block Iran.

Also...Where will the money come from to build it?

Nabucco needs sources of gas supply from Turkmenistan, Azerbaijan and Iran in the long run. But so far it’s not clear who will be able to fill the pipes, and when, according to Lev Snykov, analyst at VTB Capital.

While Russia has funds to build its South Stream, Nabucco lacks financing. So far it’s not clear where the pipeline – already dubbed as Europe’s energy Silk Road – will get the money from.

Babel-Fish

at 17:49 on July 13th, 2009

The Caspian sea of course as that's where all the juicy oil is and Europe wants it. Now a deal has been made Nabucco will attract investors I expect the same ones interested in Georgia as a pipe driveway to Caspian sea oil. Iran could also be a driveway to the oil could we be seeing much more interest in invading Iran and giving back it peoples freedom? Or culvert funding of civil discontent to overthrow the religious dictator for a more acceptable democratic government? Are we seeing the latter now and Iran's beef about UK and Europe's interference being true and not propaganda?

The global chess game awaits some new crafty moves and Russia I think is ready to make its move. The Caspian Basin oil is one hell of a tasty tit bit and many an oil company would sell their souls for a taste of the black gold from this Hugh oil reserve. Strings are being pulled and thats for sure and the heart of Europe wants to see competition of its oil supply and cheaper oil and gas. These damn people do not care about global warming its all about profits, corruption and innocent life's ones again could be lost due to their callous greed.

Russia certainly does not want to build a pipeline that ends up being less profitable than they planned it to be. That's the reality unfortunately and I see trouble not far ahead and a very good possibility of some small decisive oil related wars or political blocks place concerning the threat of small wars.

However that's my opinion and time will be the judge if my predictions are right. I hope they are wrong.