* EU summit to chart steps for sourcing central Asian gas
* Summit to call for energy MoU with Iraq
* Summit to call for transit accord with Turkey by June
By Pete Harrison and David Brunnstrom
BRUSSELS, May 4 (Reuters) - Europe should rapidly bolster
energy ties with Iraq and sign a deal with Turkey by June in its
quest to develop a new "southern corridor" for gas imports,
leaders and ministers are expected to agree later this week.
The European Union's Czech presidency will host a summit of
European and Central Asian countries in Prague on May 8, seeking
to smooth the path for eventual gas imports from central Asia to
help reduce Europe's heavy dependence on Russia.
The 27-nation EU has become increasingly uneasy over energy
security since a row in January between Moscow and transit
country Ukraine led to a cut in supplies to Europe in the depths
of winter.
Tensions have risen further since NATO expelled two Russian
diplomats last month, and announced military exercises in
Georgia, which fought a brief war with Russia last August.
The "New Silk Road" talks in Prague will aim to convince
leaders from Central Asian supplier countries such as Azerbaijan
and Turkmenistan that the EU is a serious gas customer.
"For those countries, the EU has for 15 years just been
talking and not being serious," said an official of the Czech EU
presidency. "We are trying to persuade people in the EU to put
their money where their mouths are."
An early draft of a declaration prepared for leaders on
Friday said: "We agree ... for the EU and Iraq to sign a
memorandum of understanding on energy as soon as possible."
Iraq is seen as a promising new source of gas for the
proposed Nabucco pipeline, which has so far been focused on
carrying Azeri gas but has only sourced one fifth of that needed
to justify its construction.
NO TIME TO LOSE
Haggling over the transit of gas to Europe could delay the
development of some Azeri gas for Nabucco until 2016, two years
beyond its initial launch date, Azeri suppliers said last month.
The draft called on EU member states involved in Nabucco to
end that wrangling and to sign an intergovernmental accord with
transit country and EU candidate Turkey by June.
That step would clear one of the main obstacles potential
investors face in planning for Nabucco and would also improve
clarity for the rival ITGI project, which would bring gas from
Turkey to Europe via Greece and then Italy.
An intergovernmental agreement for ITGI should also be
signed this year, said the draft, which could yet change as the
meeting approaches.
The meeting on Friday will come a day after a summit to
launch the European's Union's Eastern Partnership project with
Ukraine, Moldova, Belarus and other energy transit states.
The Czech EU official said that after years of wavering,
Europe had no time to lose in securing alternatives to Russian
gas.
"The risk is simple -- that Azerbaijan will sell its gas to
Russia, and Turkmenistan will be pushed to sell to Russia or
Iran."
"How can you create a gas market, or any market, if you have
one or two inputs," the official added. "The only thing that
will happen is that prices will skyrocket."
(Writing by Pete Harrison, Editing by Peter Blackburn)
