ESSEN, Germany, Sept. 9 (UPI) -- Pledges of financial support from international lenders for the Nabucco gas pipeline for Europe are a significant development, a German energy company said.
The European Investment Bank, the European Bank for Reconstruction and Development and the World Bank this week signed a mandate letter pledging $5 billion for the $10 billion Nabucco natural gas pipeline.
German energy company and Nabucco consortium member RWE praised the development as a sign the project was one step closer to reality.
"It is another clear signal to supplier countries that Nabucco has the full political support of Europe and the international community," said Stefan Judisch, RWE's managing director for trade, in a statement from the company.
Judisch added that the 2,050-mile pipeline is the most "secure and attractive" option for the European community.
Europe aims to break the Russian grip on the regional energy sector by moving gas from Central Asia and the Middle East through the Nabucco pipeline. Moscow, meanwhile, is building the Nord Stream project through the Baltic Sea and is making progress on plans for the South Stream pipeline, a rival to Nabucco.
Nabucco will run from the Turkish borders with Georgia and Iraq through Turkey to Austria. Despite the political support for the project, formal gas commitments are slow to emerge.
The project is planned for a 2014 launch.
