New pipeline to reduce Europe's reliance on Russia

The European Union and the energy ministers of Austria, Hungary, Romania, Bulgaria and Turkey agreed yesterday to go ahead with the construction of a pipeline that will enable Europe to reduce its dependence on Russian gas. In a joint declaration in Vienna and in the presence of EU Energy Commissioner Andris Piebalgs, the ministers agreed to build the 3,300-kilometre long Nabucco pipeline that will guarantee the supply of about 30 billion cubic metres of gas a year from Iran to Central Europe by 2015. The cost of the pipeline is estimated at €4.6-billion ($6.5-billion). According to predictions by the European Commission, between 10 per cent and 15 per cent of the EU's gas supply will come from the Caspian Sea region by 2025. AFP