Nabucco shareholders to sign deal with Azerbaijan by end-2010
The consortium on the Nabucco gas pipeline project, which will pump
Caspian and Central Asian gas to European markets, plans to sign an
agreement with suppliers, including Azerbaijan, by the end of 2010,
its managing director said during a visit to Baku on Wednesday.
Reinhard Mitschek said talks are underway with international lenders on financing the project. A final decision on investment is expected in mid-2011, with construction work due to begin by the end of next year.
According to the Nabucco Gas Pipeline International managing director, gas resources of the Caspian region essentially suffice to fill the conduit. "If the regional countries try, two Nabucco pipelines can be filled with gas."
At the initial stage, the 3,300-kilometer Nabucco pipeline, which will run from eastern Turkey to the Austrian capital Vienna, is expected to transport 10-15 billion cubic meters of gas, with throughout capacity to be increased to 31bn cubic meters in the future.
Mitschek said Europe is interested in importing gas from countries like Turkmenistan, Iraq, Azerbaijan and Egypt, and preliminary agreements have been reached with these countries, while Iran’s participation in the project is not a subject of discussion.
Mitschek also said that along with gas to be produced during Phase 2 of developing Azerbaijan’s giant Shahdaniz field in the Caspian Sea, the Nabucco consortium is expecting to receive gas from such prospective structures as Nakhchivan and Absheron. As for Turkmenistan, the Central Asian state is expected to supply 10bn cubic meters of gas a year to European markets through Nabucco.
The Nabucco pipeline, scheduled to be completed by 2014, is the key component of the EU's ambitious Southern Corridor plan. Nabucco is competing with Russia's South Stream pipeline project to meet gas demands in Europe. Nabucco shareholders are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE with 16.67 percent each. About 30 percent of the 7.9 billion euro project’s cost will be covered by the Nabucco Gas Pipeline International’s shareholders, while 70 percent will be funded on account of international lenders.*
Reinhard Mitschek said talks are underway with international lenders on financing the project. A final decision on investment is expected in mid-2011, with construction work due to begin by the end of next year.
According to the Nabucco Gas Pipeline International managing director, gas resources of the Caspian region essentially suffice to fill the conduit. "If the regional countries try, two Nabucco pipelines can be filled with gas."
At the initial stage, the 3,300-kilometer Nabucco pipeline, which will run from eastern Turkey to the Austrian capital Vienna, is expected to transport 10-15 billion cubic meters of gas, with throughout capacity to be increased to 31bn cubic meters in the future.
Mitschek said Europe is interested in importing gas from countries like Turkmenistan, Iraq, Azerbaijan and Egypt, and preliminary agreements have been reached with these countries, while Iran’s participation in the project is not a subject of discussion.
Mitschek also said that along with gas to be produced during Phase 2 of developing Azerbaijan’s giant Shahdaniz field in the Caspian Sea, the Nabucco consortium is expecting to receive gas from such prospective structures as Nakhchivan and Absheron. As for Turkmenistan, the Central Asian state is expected to supply 10bn cubic meters of gas a year to European markets through Nabucco.
The Nabucco pipeline, scheduled to be completed by 2014, is the key component of the EU's ambitious Southern Corridor plan. Nabucco is competing with Russia's South Stream pipeline project to meet gas demands in Europe. Nabucco shareholders are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE with 16.67 percent each. About 30 percent of the 7.9 billion euro project’s cost will be covered by the Nabucco Gas Pipeline International’s shareholders, while 70 percent will be funded on account of international lenders.*
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
Subscribe
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!