BERLIN, March 3 (UPI) -- The proposed Nabucco pipeline should not receive European funding because it may not be adequately supplied, German officials said.
German Chancellor Angela Merkel expressed her hesitation about channeling funds from the European Union to the proposed $10.7 billion project amid skepticism over gas supplies, the EU news agency EurActiv reports.
Germany is obligated to a significant portion of the funding as an EU member but has long moved in opposition to the project, the report said. Germany would host the planned Nabucco rival Nord Stream pipeline from Russia, and the consortium, Nord Stream AG, submitted applications to Berlin in December for its construction.
Meanwhile, Bulgargaz in Bulgaria, Hungary's MOL and OMV in Austria -- all members of the Nabucco consortium -- have also signed on to another Nabucco rival, South Stream, which would bring Russian gas to Italy.
Brussels has secured $314.3 million for the Nabucco project to bring natural gas from Central Asian and Middle Eastern suppliers. The project is seen as a near panacea for European energy diversification.
Nabucco Gas Pipeline International GmbH said the pipeline would begin operations in 2014.
