Five countries sign Nabucco pipeline agreement

The governments of Austria, Bulgaria, Hungary, Romania and Turkey have signed an agreement to build the 3300 km Nabucco pipeline. The € 8 billion project will allow natural gas to be exported from the Caspian Sea and Middle East to the EU.

The pipeline wil run from Ankara in Turkey to Baumgarten in Austria via Bulgaria, Romania and Hungary. From Turkey, further spurs are expected to be built to gas-rich countries on the Caspian Sea such as Iran and Azerbaijan, as well as others such as Iraq.

It is hoped construction wil get underway in 2011, with the first gas flowing in 2014. According to the European Commission, the pipeline could supply between 5% and 10% of Europe's natural gas demand.

However, before that can happen the desgin has to be completed, trading agreements finalised and funding secured.