Oil report

UPDATE 1-EU to propose 250 mln euro Nabucco funding -draft

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BRUSSELS, Jan 27 (Reuters) - The European Commission will propose 3.5 billion euros ($4.6 billion) of funding for energy projects in the wake of this winter’s gas dispute, including 250 million euros for the Nabucco pipeline, according to a draft.

The draft paper, which is due to receive final approval on Wednesday, also included a proposal for funding worth one billion euros towards gas interconnectors to improve the ability of the EU’s 27 states to help each other during gas crises.

It envisages 150 million euros funding for the Skanled gas pipeline linking Poland, Denmark and Sweden and 100 million euros for gas interconnections between Italy and Greece.

Plans for a ring of electricity interconnections linking up Baltic countries will receive 275 million euros, out of a total 705 million to be spent on improving the EU power grid.

Wind power will also receive a 520-million-euro boost, with major investments in the Baltic region and the North Sea.

Innovative technology to capture and store carbon dioxide emissions from coal fired power stations, which will help them comply with future environmental standards, will receive 1.25 billion euros. (Reporting by Pete Harrison and Jan Lopatka; writing by Mark John)