All eyes on Nabucco pipeline

ISTANBUL, Turkey, Jan. 14 (UPI) -- The gas shortage in Europe sparked by the Russian conflict with Ukraine inspires the political will to move ahead with the Nabucco pipeline, officials said.

Officials from the Nabucco pipeline consortium met in Istanbul to champion the Nabucco pipeline to Europe and the subsequent benefits to supplier nations, Turkish newspaper Today's Zaman reported.

Europe produces roughly 40 percent of its total gas consumption, relying on Russia and other producers for the remaining volumes.

Analysts forecast a rise in European gas consumption as domestic supplies dwindle, prompting Europe to look for alternative supplies beyond Russia.

The $10 billion Nabucco project would carry gas from the Middle East, North Africa and Central Asia to European customers. Western leaders tout the project as a panacea for European energy diversity, but the price tag and concerns over adequate supplies haunt development.

Studies on the project, however, show increased interest from supplier nations, with initial projections putting the volume of transits at 880 billion cubic feet of gas per year.

Nabucco Managing Director Reinhard Mitschek said the project is diverse enough that collective will could move plans forward to as early as 2010.

Beyond the Russian conflict, the current global economic climate creates an environment for major banks to look for secure borrowers to maintain long-term stability.

"Profits, costs and risks will all be shared," Mitschek said.