Azernews.Az

LONDON – German utility RWE's trading arm said on Wednesday that talks with Azerbaijan and progress in the Kurdish region of Iraq would bring it closer to obtaining enough supply for the planned Nabucco gas pipeline, Reuters reported.

The chief executive of RWE Supply & Trading, Stefan Judisch, said during an industry conference that the third round of talks with the BP-led Shah Deniz II gas field consortium in Azerbaijan were scheduled for Nov. 12.

"We are in talks with the Shah Deniz counterparties and I am optimistic about Nabucco," Judisch said at a press briefing.

"They will short-list buyers before Christmas and announce a final buyer in first quarter 2011."

RWE and Austrian partner OMV hope to secure 10 billion cubic metres (bcm) from Azerbaijan to go towards filling minimum requirements for the 31 bcm pipeline to bring Caspian region gas to Europe in a bid to cut reliance on Russia.

Apart from these two companies, the consortium has four other members. A decision to construct the pipeline can be taken only if there are enough supply pledges to fill it.

Another 6 bcm to be secured from Azerbaijan would be earmarked for the Turkish market, making the total 16 bcm.

Russia and other pipeline projects are also eyeing Shah Deniz resources. Turkmenistan, another potential supplier to Nabucco which has started shipping gas to China, has been slow to commit itself in favour of western recipients.

Judisch sounded his optimistic note after the Nabucco group a month ago delayed an investment decision to 2011.

Nabucco is making progress with a second targeted supplier, the Kurdish region of Iraq, and momentum is speeding up among the desired partners in the region, he said.

"We have to create a network of (inter)dependencies. Once we have done that, this project will go," he said.

Judisch swept aside remarks by a consultant at the conference on Tuesday that there would probably not be any Iraqi gas for European export before 2020.

A new central government is forming in which the Kurds are going to play a role and align themselves with Baghdad, he said.