'Milestone' reached on Nabucco pipeline

ANKARA, Turkey, July 14 (UPI) -- Delegates from 18 countries met in Ankara on Monday for the signing of a "milestone" intergovernmental agreement on the Nabucco gas pipeline to Europe.

Officials from supplier nations and project supporters -- Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan -- joined regional delegates, European and U.S. officials to attend the signing ceremony for the $10.7 billion project.

Nabucco would transit some 2,050 miles to bring about 1.1 billion cubic feet of natural gas each year to European customers from Caspian and Middle Eastern suppliers. Europe put the project at the top of its diversification strategy meant to free the regional energy market from Russian control.

Despite a series of high-profile meetings meant to generate support for the project, the pipeline faces challenges in meeting its reserve capacity due to a lack of commitments from potential gas suppliers.

Regardless, European leaders praised the signing of the agreement, saying it strengthened regional relations.

"Gas pipes may be made of steel, but Nabucco can cement the links between our people," said Jose Manuel Barroso, the president of the European Commission.

Meanwhile, the U.S. State Department offered its congratulations to the governments of Turkey, Bulgaria, Hungary, Romania and Austria on the signing, saying the measure was a "milestone" agreement.

"This agreement is a significant milestone in achieving our shared vision of opening a new energy corridor that will bring Caspian gas to Europe," said Ian Kelly, the spokesman for the U.S. State Department.