Less dependence on Russia for the EU as Turkey and four other EU countries sign a new pipeline deal.

The Nabucco project, formally agreed by Turkey and four other EU nations, is intended to reduce the EU’s reliance on Russian gas by allowing a new pipeline to be built through their countries.

The prime ministers of Turkey, Austria, Bulgaria, Romania and Hungary signed the agreement on monday, allowing the pipeline to be built through their countries to transport gas from Central Asia and the Middle East.

The dependence on Russian gas can not be entirely broken, but this project will go some way to reducing the dependence on the gas piped from the world’s largest country to the rest of the EU. Russia have twice cut off gas supply running through the Ukraine in the middle of winter, following disputes with Kiev, making this new pipeline a vital alternative for the rest of the continent.

There are other solutions to the dependency on Russia being pursued. With Russia providing over a quarter of the EU’s gas, and 80% of that coming through pipelines in the Ukraine, Russian energy companies are seeking to build new pipelines that will take other routes to the rest of Europe.

The EU is also seeking a more diplomatic solution, to work with Russia in increasing confidence in their ability to consistently supply to the rest of the EU.

The pipeline is an €8 billion project. Work on the 3,300km long pipeline is due to start in 2011, and is due to be completed and start operating in 2015.