US: Russia can participate in Nabucco but not Iran

ANKARA, Turkey — The United States says it does not object to Russia’s participation in a pipeline project to bring gas to Europe but claims Iran should be excluded until it improves its ties with the West.

Richard Morningstar, U.S. special envoy for Eurasian energy issues, says the U.S. is trying to engage with Russia on energy issues. Senator Dick Lugar says Russia could take part as a customer or a supplier.

Morningstar, however, says Iran should be left out of the project until it improves its ties with Europe and the U.S. Washington has reached out to Iran but has not so far received a “positive response,” he says.

The 3,300 kilometer (2050 mile) pipeline will bring Caspian and Central Asian gas to Europe to reduce EU dependence on Russian natural gas.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

ANKARA, Turkey (AP) — Turkey and five European Union countries will sign a landmark agreement on Monday aimed at reducing Europe’s reliance on Russian energy by running a gas pipeline from the Caspian Sea region to the EU via Turkey.

The prime ministers of Turkey, Austria, Bulgaria, Romania and Hungary will sign the intergovernmental deal to allow the EU- and US-backed Nabucco pipeline to cross their territory. It will be build by a private consortium.

The projected pipeline would bypass both Russia and Ukraine, making Turkey an alternative energy route between Central Asia and the Middle East to Europe, potentially enhancing Turkey’s hand in overcoming stiff EU resistance to letting it into the elite club of nations.

Turkmenistan said Friday that it is prepared to provide natural gas to the project while Azerbaijan signaled a possible contribution, raising hopes of securing enough suppliers to make the pipeline viable.

“This project can be used as a stimulant in our relations with the EU,” Turkey’s Energy Minister Taner Yildiz said.

Although Europe will most likely remain to some extent dependent upon Russian supplies, the project would alleviate problems such as the sudden shut-off in deliveries witnessed earlier this year. Russia provides over a quarter of Europe’s gas, and 80 percent of that moves over Ukraine’s pipelines. The volume of gas from Nabucco in the best case will be no more than 5 percent of Europe’s consumption.

“The southern corridor is very important because it will open the door of the Caspian gas-rich region, will provide for an alternative transit route, and will increase competition in the market,” EU Energy Commissioner Andris Piebalgs wrote in his blog recently.

European Commission President Jose Manuel Barroso will be present during the ceremony to underscore the importance given to the project by the EU. The United States also strongly supports the project and is represented by the top Republican on the Foreign Relations Committee, Sen. Dick Lugar of Indiana.

Nouri Al-Maliki, the prime minister of neighboring Iraq — a potential gas supplier — and Georgian President Mikhail Saakashvili are also attending.

The 2,050-mile (3,300 kilometer) projected pipeline would run from the Caspian Sea across Turkey to Austria and involves investments of euro8 billion ($10.26 billion), according to EU data.

Moscow, meanwhile, is pushing hard for alternative pipelines to Europe for its own gas — the so-called Nord Stream through the Baltic Sea to Germany and the South Stream through Bulgaria. Just two weeks ago, Russia clinched a major natural gas deal with Azerbaijan to buy 500 million cubic meters of gas annually starting next year, striking a blow to European efforts to reduce energy reliance on Russia.

Turkey does not rule out Iran and Russia as future suppliers to the pipeline’s 31 billion cubic-meter carrying capacity. Iran has not been invited to the ceremony because of the ongoing standoff over its nuclear program.