Turkey 'got what it wanted' on Nabucco, minister reiterates

Saturday, 18 July 2009 11:07

The Nabucco pipeline agreement is a turning point for Turkey’s energy strategy and international politics, Energy Minister Taner Yıldız told journalists Friday at the monthly meeting of a business group regarded as close to the government.

Noting that Turkey is “not the same country compared to a decade ago,” Yıldız said it is now “a strong country that can achieve what it wants.”

According to Yıldız, other projects, such as the Russia-backed South Stream, are “not alternatives to Nabucco. Nabucco and the South Stream Project are two different projects. People should not confuse them as both of them have a different importance for Turkey.”

Turkey is in touch with Russia on the issue, Yıldız said, adding, “Everybody should be watching these meetings like they did on Nabucco.”

“If we are clear and transparent, Turkey can get whatever it needs,” the minister said. “Turkey has an important position in the global energy sector. As long as Turkey keeps these resources in the east and owns a large market in the west, it will always be an important country.”

A signing ceremony for the Nabucco project was held Monday in Ankara. Next, six countries – Turkey, Bulgaria, Germany, Austria, Romania and Hungary – are expected to sign a Project Support Agreement with Nabucco Gas Pipeline International. “In six months, these agreements will be completed,” Yıldız said.

Some 2,000 kilometers of the 3,300-kilometer Nabucco pipeline will pass through Turkish soil. The project is estimated to cost 7.9 billion euros, or $11 billion.

According to the energy minister, there are two main issues regarding the Nabucco deal. “Sustainable [gas] supply for Turkey is very important. Turkey get can get 15 percent of the gas,” he said. “But there is also an article in the agreement that says if the gas pipeline passes through a country and if that country is in need, it may take up to 50 percent of the passing gas.”

“Turkey got more than it wanted from Nabucco,” Yıldız said, adding, “Another important issue is taxation. The agreement says countries will share taxes, but we have objected to this because it is not fair.”

Noting that while 2,000 kilometers of pipeline will pass through Turkey, other countries will host as little as 46 kilometers on the project, Yıldız added: “It should not be expected that we receive the same taxes as such countries. The tax we will get may be 4.2 billion euros.”