U.S. weighs in on Nabucco
Iran is not excluded entirely from emerging as a possible natural gas supplier to the Western-backed Nabucco pipeline, U.S. representatives said.
Speaking at a two-day energy summit in Sofia during the weekend, Richard Morningstar, a U.S. envoy to Europe and Central Asia on energy matters, said Iran could be a possible supplier to Nabucco.
Nabucco would travel from the Caspian region to European markets along a route through Turkey. Ankara has said it could move on the project as early as June, and the other Nabucco consortium members -- Austria, Bulgaria, Germany, Hungary and Romania -- backed those sentiments during the Sofia conference.
Morningstar noted Iran sits on major gas fields as Nabucco critics point to supply concerns for the 2,051-mile artery, but he also talked of diplomatic concerns over economic engagement with Tehran, Iran's Press TV reports.
"Obviously right now gas from Iran creates some difficulties with the United States as well as with other countries," he said.
Press TV said Morningstar is the first U.S. official in the administration of President Barack Obama to publicly endorse Nabucco.
He offered caveats, however, in an interview with Bulgaria's Focus news agency.
"Nabucco is important, but it is not the only solution for European energy security," he said. "This is problem of countries attendants in the project. We will help for realization of the project as much as we can."
Turkey key energy hub
Turkey has a key role to play as an important energy hub in the European drive to diversify regional natural resource transit options, Czech officials said.
European gas disruptions stemming from a January dispute between Kiev and Moscow put heightened emphasis on the need to diversify the regional energy-transit sector.
Europe gets about 25 percent of its gas from Russia, though 80 percent of that travels through Soviet-era pipelines in Ukraine.
Turkey is seen as a major host for the Western-backed Nabucco pipeline. The Russian project South Stream, meanwhile, would travel along Turkey's littoral boundary in the Black Sea.
Czech Deputy Prime Minister for European Affairs Alexander Vondra told Turkish daily Today's Zaman that Turkey's position in the regional energy sector is growing.
"Turkey will play a key role in natural gas transit routes," he said.
He cautioned Ankara, however, not to proceed too boisterously in the matter, pointing to Kiev's position in the midst of the January row.
Nabucco would bring natural gas from Central Asian and Middle Eastern suppliers. The $10.7 billion project is hampered by supply and finance concerns, however.
Vondra dismissed those concerns, saying the importance of diversification outweighs any speculation on other matter.
"We should not resign (ourselves) to skepticism," he said.
Meanwhile, Russian Energy Minister Sergei Shmatko told the Sofia delegation that, while the South Stream project was not an explicit rival to Nabucco, gas and construction on the southwestern corridor would be much cheaper than the Nabucco project.
TransCanada begins permit process
The Calgary-based TransCanada Corp. began its permit process for an Alaska gas pipeline by submitting plans to a U.S. energy commission for review.
TransCanada submitted its plans to the U.S. Federal Energy Regulatory Commission for a 1,715-mile gas pipeline from the Alaska North Slope to markets in the Lower 48, Canada's CBC News reports.
The application opens the door to third-party vetting of engineering and other details of the project.
"It's the first formal step for TransCanada," said Tony Palmer, a company vice president.
The Alaska state government granted TransCanada an endorsement on the heralded pipeline, though bringing gas producers on board that project is complicated by a rival plan offered by the BP-ConocoPhillips consortium, Denali.
Palmer said his company would proceed with its permit process, however, and leave the matter up to state and federal regulators.
"They will consider both applications," he said. "After due consideration, they will either approve one or both or neither."
TransCanada expects to submit its final applications for the project by 2012.
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