VIENNA, June 26: The European Union and the energy ministers of Austria, Hungary, Romania, Bulgaria and Turkey agreed on Monday to go ahead with the construction of a pipeline that will enable Europe to reduce its dependence on Russian gas.

In a joint declaration and in the presence of EU Energy Commissioner Andris Piebalgs, the ministers agreed to build the 3,300-kilometre long Nabucco pipeline that will guarantee the supply of about 30 billion cubic metres of gas a year from Iran to Central Europe by 2015.

Five companies — Turkey's Botas, Bulgaria's Bulgargaz, Transgaz of Romania, Hungary's Mol and the Austrian OMV Gas -- have formed a joint venture, Nabucco Gas Pipeline International, to carry the gas from Iranian fields in the Caspian Sea to Central and Western Europe.

The cost of the pipeline is estimated at 4.6bn euros ($5.8bn).

According to predictions by the EC, which financed a pipeline feasibility study, between 10 and 15pc of the EU’s gas supply will come from the Caspian Sea region by 2025.—AFP