Nabucco project developments mulled

The latest developments on the Nabucco gas pipeline were discussed at the meeting of the project's officials with the Energy Community Secretariat this week, Nabucco Gas Pipeline International GmbH reported.

According to the Nabucco Management, the project offers the most comprehensive legal framework, which builds on intergovernmental agreements and is in full compliance with EU energy laws. Nabucco's management believes that the project can offer a fixed, long term transportation tariff in all five Nabucco countries based on a unified legal framework.

"As regards South East Europe, Nabucco is also able to deliver Nabucco gas to the whole Southern corridor," the report says.

Nabucco gas pipeline project is designed to transport gas from the Caspian region and Middle East to the European countries. Construction of the pipeline is planned to start in 2013 and the first supplies are scheduled for 2017. The total length of the pipeline is 3,900 kilometers with a maximum capacity of 31 billion cubic meters per year. The project's partners include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and the German RWE.

Gas which will be produced during the second stage of Shah Deniz field development is considered as the main source for Nabucco project. According to the Shah-Deniz-2 project, Azerbaijan plans to transport gas to Europe at a volume of 10 billion cubic meters.

On Oct. 1, Nabucco with the other pipeline projects (TAP, ITGI) submitted their final proposals to the Azerbaijani side, which will review them in accordance with the previously announced criteria. The decision on the preferable transportation route is expected to be made till the first quarter of 2012.

During the meeting Nabucco Gas Pipeline International GmbH Managing Director Reinhard Mitschek said that the projects waits now for the final Azeri decision on the prefered project. Mr. He stressed that the Nabucco Shareholders will decide on the next steps on commercial criteria.

"There are alternatives how to execute the project. Nabucco also stands open for cooperation with the other planned gas projects," he said.

The Director of f the Energy Community Secretariat Slavtcho Neykov said that the Energy Community has no explicit preference concerning the planned gas pipeline projects. According to him, the Community is looking towards diversification of gas supply options and to gasification where it is still missing.


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