RWE says Nabucco supply agreement talks delayed
Nabucco shareholder RWE now expects to sign a supply
agreement with Turkmenistan by the end of this year, later than
expected, as political talks delay progress of the gas pipeline
project, Reuters reported.
"As soon as the political framework has been created, Turkmenistan will be ready to sign a supply contract. The timing depends on the speed of political decision processes," Stefan Judisch, chief executive of RWE Supply & Trading, told reporters in a conference call on Tuesday.
RWE had previously said it expected to sign a supply agreement in the first six months of this year.
The 7.9 billion euro ($10.52 billion) Nabucco project has been hit by delays and analysts have questioned whether it will materialise on time or at all, but they have said the signing of a supply agreement would be a major step forward.
Nabucco plans to transport up to 31 billion cubic metres of gas a year from the Caspian region to an Austrian gas hub via Bulgaria, Romania, Turkey and Hungary and reduce Europe's reliance on Russian gas.
Nabucco's shareholders are Austria's OMV, Hungary's MOL, Romania's Transgaz, Bulgaria's Bulgargaz, Turkey's Botas and Germany's RWE.
Nabucco faces competition from Gazprom's South Stream pipeline, which will transport up to 63 billion cubic metres a year. Construction of South Stream is set to start in the first half of 2012.
Judisch said that partner OMV's participation in South Stream does not put the Nabucco project at risk. *
"As soon as the political framework has been created, Turkmenistan will be ready to sign a supply contract. The timing depends on the speed of political decision processes," Stefan Judisch, chief executive of RWE Supply & Trading, told reporters in a conference call on Tuesday.
RWE had previously said it expected to sign a supply agreement in the first six months of this year.
The 7.9 billion euro ($10.52 billion) Nabucco project has been hit by delays and analysts have questioned whether it will materialise on time or at all, but they have said the signing of a supply agreement would be a major step forward.
Nabucco plans to transport up to 31 billion cubic metres of gas a year from the Caspian region to an Austrian gas hub via Bulgaria, Romania, Turkey and Hungary and reduce Europe's reliance on Russian gas.
Nabucco's shareholders are Austria's OMV, Hungary's MOL, Romania's Transgaz, Bulgaria's Bulgargaz, Turkey's Botas and Germany's RWE.
Nabucco faces competition from Gazprom's South Stream pipeline, which will transport up to 63 billion cubic metres a year. Construction of South Stream is set to start in the first half of 2012.
Judisch said that partner OMV's participation in South Stream does not put the Nabucco project at risk. *
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