Prime Minister Sergei Stanishev signed in the name of Bulgaria the Intergovernmental Agreement on Cooperation in Transportation of Natural Gas over the Nabucco Gas Transmission System at a formal ceremony in Ankara, Turkey, on Monday. The news was released by the government information service.

Four EU countries (Austria, Bulgaria, Hungary and Romania) and Turkey signed the agreement for the development of Nabucco, which will reduce Europe's dependence on Russia for gas supplies.

The ceremony was attended by the President of the European Commission Jose Manuel Barroso and the US Special Envoy for Eurasian Energy Richard Morningstar.

The ceremony was hosted by Turkish Prime Minister Recep Tayyip Erdogan. There were also representatives of the European Investment Bank, the European Bank for Reconstruction and Development, as well as Georgian President Mikhail Saakashvili,

Iraqi Prime Minister Nuri al-Maliki, ministers and high-ranking representatives of the Swedish EU Presidency, representatives of Azerbaijan, Egypt and Syria, the press release adds.

In his speech at the forum in Ankara Stanishev underscored that the signing of the agreement on Nabucco is a definitive achievement of the governments of the states participating in the project. This is their real and distinctive contribution to the diversification of energy sources, which lies at the foundation of European energy security.

The agreement achieves a new basis of the project and a common legal framework, which is a stimulus to private initiative and enterprise, and supports the opportunities for investments in the gas sector, Stanishev underscored, adding that above all it would increase the prosperity of the citizens of the participating states.

"I cannot but note that for Bulgarian citizens, on whom the January gas crisis reflected, the signing of the agreement on Nabucco bears an economically and politically encouraging message. To us the project is part of the European strategy of security of alternative suppliers, sources and routes of gas supplies, and Bulgaria will continue to work consistently for the success of these efforts," the Bulgarian Prime Minister said.

"Nabucco will provide energy security to Turkey, to Southeast Europe, and to Central Europe. Nabucco is thus a truly European project," Barroso said in his remarks upon the signature of the agreement, the European Commission said.

"I can comfortably say that this is an achievement of which we can all be proud, because Turkey and the European Union have tackled, together, a common challenge, i.e. the security and diversification of their energy supplies."

"This agreement could open the doors to a new era in the relationship between the European Union and Turkey," the EC President continued.

The Nabucco project represents a new gas pipeline connecting the Caspian region, Middle East and Egypt via Turkey, Bulgaria, Romania, Hungary with Austria and further on with the Central and Western European gas markets, the project Website reads.

The pipeline length is approximately 3,300 km, starting at the Georgian/Turkish and/or Iranian/Turkish border respectively, leading to Baumgarten in Austria. According to market studies the pipeline has been designed to transport a maximum amount of 31 bcm/y.

Estimated investment costs including financing costs for a complete new pipeline system amount to approximately 7,900 million euro.

Talking at a news conference after the signing ceremony, Stanishev thanked to all representatives of the countries that had helped conclude the Nabucco agreement, in particular European Commission President Barroso and European Commissioner for Energy Andris Piebalgs for their support in defining the principles of the docunent.

"There are many Nabucco opponents and skeptics but I believe that today's success has been achieved thanks to the solidarity and cooperation of all parties concerned," Stanishev said.

In Ankara Stanishev attended a lunch given by Turkish Prime Minister Erdogan in honour of the leaders of the delegations.

Meeting later, Stanishev and his Turkish counterpart expressed satisfaction with the high level at which the Nabucco agreement had been signed.

Stanishev and Erdogan talked in the sidelines of the forum which gathered the leaders of the states participating in the Nabucco project and which marked the start of the project's implementation.

Stanishev expressed gratitude to his Turkish host for Turkey's initiative and leading role, which made it possible to sign the document.

"Each country has interests of its own," Stanishev emphasized during the meeting. He pointed out that the beginning had been laid and what is left is to start the construction of the pipeline.

Stanishev and Erdogan shared the opinion that the cooperation between their countries, especially in the energy sector, is very good and expressed hope that Bulgaria's new cabinet will continue to work for its promotion.

Bulgarian Economy and Energy Minister Peter Dimitrov, who attended the meeting, said that the construction of a 20 km long reverse link between Bulgaria and Turkey would allow to increase the security of gas deliveries to the entire region.

Source: BTA