Nabucco deal signed in Ankara (UPDATE)

15:01

The document was signed by heads of Turkish, Austrian, Hungarian governments and energy ministers of Bulgaria and Romania. Ministers of 20 countries, as well as U.S special envoy for Eurasian energy Richard Morningstar, deputy assistant secretary of state for European and Eurasian affairs Matthew Bryza, European Commissioner for energy Andris Piebalgs participated in the ceremony. Azerbaijani Industry and Energy Minister Natiq Aliyev represented Azerbaijan.    

10:47

EU countries and Turkey are to sign off Monday on Nabucco, a landmark pipeline project that could reduce Europe's reliance on Russian gas but still wants for big suppliers, AFP reported.

Turkish Prime Minister Recep Tayyip Erdogan is to host the signing of transit agreements between his country, Austria, Bulgaria, Hungary and Romania at a ceremony in Ankara.

Backers hope the 3,300-kilometre (2,000-mile) pipeline will one day pump as much as 31 billion cubic metres of gas from the Caspian Sea to Austria via Turkey and the Balkans, bypassing Russia.

Nabucco is expected to become operational in 2014 at an estimated cost of 7.9 billion euros (10.9 billion dollars).

In a sign of the importance being attached to the project, Monday's ceremony will be attended by European Commission chief Jose Manuel Barroso; Prime Minister Nuri al-Maliki of potential supplier nation Iraq; and US special envoy for Eurasian energy Richard Morningstar, Turkish officials said.

Two European banks have expressed readiness to support the project financially, but analysts say securing the cost could be difficult amid the global economic slowdown and are unconvinced enough gas supplies will be found.

"Even if the necessary financing is found after some delay, there is still the big question of procurement," said Necdet Pamir, a Turkish energy expert.

Nabucco got a boost on Friday when Turkmen President Gurbanguly Berdymuhmedov signalled his nation's willingness to get involved.

/Trend Capital/