Europe's proposed Nabucco pipeline project, meant to reduce its dependence on natural gas from Russia, is unlikely to take shape as originally planned, German daily Frankfurter Allgemeine Zeitung reported Wednesday, citing EU diplomats.

The pipeline, which was planned to transport gas from the Caspian region through Turkey and on to Austria, has become too expensive, the newspaper said.

Companies in the Nabucco consortium are looking at a smaller pipeline to Austria from the border between Bulgaria and Turkey, the newspaper said.

-Dow Jones Newswires; dennis.baker@dowjones.com