Azerbaijani SOCAR and Austrian OMV start negotiating on gas for Nabucco

Austria's OMV AG, one of the participants in the Nabucco pipeline project, is negotiating with SOCAR (State Oil Company of Azerbaijan) to supply gas to the pipeline, State Secretary of the Ministry of Finance of Austria Reinhold Lopatka said on September 2.

Austria displays a great interest in Azerbaijan as a supplier of gas for the Nabucco pipeline, said Lopatka, adding that SOCAR and OMV have already begun negotiations.

The Nabucco gas pipeline is worth 7.9 billion euro. Participants are the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE. Each participant has an equal 16.67-percent share. Construction is planned to launch in 2011, with first supplies commencing in 2014. Its maximum capacity will hit 31 billion cubic meters per year. The Nabucco Gas Pipeline International will invest 30 percent of the project's total cost. The remaining 70 percent will be paid by loans.


/Trend/