EU Representative Attempts to Remove Obstacles for ITGI Pipeline

European Energy Commissioner Andris Piebalgs heads to Turkey on Wednesday seeking to shift one of the most immediate obstacles to European imports of gas from the Caspian region.

Piebalgs will meet both Turkey's prime minister and its president, and he hopes a deal on transit fees for the gas to cross Turkish territory will be agreed by the end of the year, a European Commission spokesman said.

That would pave the way for the ITGI pipeline, which is one day hoped to carry 12 billion cubic metres (bcm) of Caspian gas a year via Turkey and Greece to Italy.

It would also reinvigorate the long-stalled Nabucco project, the pipeline whose supporters hope will one day bring 30 bcm of Caspian gas a year to an Austrian hub via Georgia, Turkey, Bulgaria, Romania and Hungary.

The 27-nation bloc is seeking to reduce its reliance on Russian gas after pricing disputes between Russia and transit states in recent years disrupted supplies.

But before the $12 billion Nabucco project gets underway, its backers need commitments for at least 15 bcm.

Azerbaijan could provide at least half of that, and that is where Piebalgs heads on Friday on the second leg of his trip.

Azerbaijan is starting to look for buyers for about 10 bcm of gas from the second phase of its Shah Deniz field, and the Commission hopes European companies will be at the forefront.

Azerbaijan says it is happy to work with Europe, but Russian gas export monopoly Gazprom is courting the Azeris.

When Russian armour entered Georgia in August, it came close to transit routes for Caspian oil and gas, highlighting the frailty of previous Western efforts to bypass Moscow.

Piebalgs will argue that the conflict has done nothing to weaken EU enthusiasm for Nabucco.

"Despite the war in Georgia, the EU is committed, and the will of the Commission has not changed," said a spokesman.

Author: Jo Amey