September 06, 2008

Iran could provide gas for Caspian Nabucco pipeline

RIA Novosti reported that Iran could contribute natural gas to the planned Nabucco pipeline to pump Caspian gas to Europe via Turkey, bypassing Russia.

Mr Manouchehr Mottaki foreign minister of Iran said that "The European Union has stated a need to diversify sources and routes of natural gas supplies. Nabucco is one of the possible projects of cooperation between Iran and the EU in the energy sphere."

Mr Ali Akbar Hashemi Rafsanjani ex president of Iran said that "Bulgaria is a gateway to Europe, and it could have an important role in economic cooperation with Iran, especially in the oil and gas sector."

The USD 6 billion pipeline, backed by the EU and the US and designed to be laid down via Turkey, Bulgaria, Romania, Hungary and Austria, is a rival project to the South Stream gas pipeline to run from Russia's Black Sea to Bulgaria and further branch off to different destinations in Europe, supplying it with 30 billion cubic meter of gas annually.

Russia and Bulgaria signed a USD 15 billion on January 18th 2008 under which they will hold a 50% stake each in a JV to operate the South Stream pipeline across the Balkan state. Construction on the Nabucco pipeline is scheduled to begin in 2009, enabling the pipeline to go on stream in 2012.