Azernews.Az

The European Commission has said it does not consider as the priority the Nabucco gas pipeline project seeking to export Caspian gas to European markets bypassing Russia.

``The Commission is neutral where the gas ends up in Europe, and it supports all pipelines in the EU, not only Nabucco but also TAP, for example,`` Marlene Holzner, spokesperson for EU Energy Commissioner Guenther Oettinger, told Azerbaijan`s Trend news agency over the phone from Brussels.

Hungarian MOL, one of the project shareholders, has serious concerns over the Nabucco gas pipeline project and is ready to sell its share in it, the company`s official said last week. MOL said its concern stemmed from the rising costs of the project and whether there will be enough gas to fill the pipeline. Later Bulgaria said it has no capability to implement the Nabucco project and offered its partners the following: if Nabucco pipeline is built, the European Investment Bank could fund it, after which Bulgaria would gradually reimburse loans.

MOL is a 100-percent owner of FGSZ Natural Gas Transmission Company, which is one of the six shareholders in Nabucco pipeline project. The project`s other partners include Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV and German RWE.

``The Commission is not in the position to comment on commercial decisions taken by companies of a private undertaking and pipeline project [Nabucco],`` Holzner said.

But Holzner made clear the EU still supports the Nabucco project, saying the aim of the Commission has always been to open the Southern Gas Corridor in order to directly link the EU gas market to the world`s largest deposits of gas in the Caspian Sea basin and the Middle East.

``The Commission always said that Nabucco, benefiting from a robust intergovernmental agreement between all countries concerned, is the pipeline that meets the EU`s strategic interest in opening the Southern Corridor, namely creating the possibility to transport large volumes of gas through a dedicated infrastructure under a clear and transparent legal framework,`` Holzner said.

She said the EU wants to see a dedicated pipeline to be built outside the EU with scalable capacity and a clear and transparent legal framework for the pipeline which would ensure uninterrupted gas supply to the EU.

``Not only is more gas expected to come from Azerbaijan, but also from Turkmenistan through the Trans-Caspian Pipeline that is currently being discussed. All pipelines now depend on the commercial decisions taken in Azerbaijan by the Shah Deniz II Consortium, which has today the only gas available to be allocated to a pipeline,`` Holzner added.

Gas produced during the second phase of Azerbaijani Shah Deniz gas condensate field development is considered to be the main source for the Nabucco project.

The construction of the Nabucco pipeline is planned to begin in 2013 and first supplies will start in 2017. The maximum capacity of the pipeline is 31 billion cubic meters of gas a year.

`Nabucco can be built without MOL`
Nabucco gas pipeline can be built without Hungarian MOL, Austrian utility OMV AG`s CEO Gerhard Roiss said in the advance release of an interview with the German daily Handelsblatt, Dow Jones reported.

According to Roiss, the legal preconditions for building the length of the pipeline have been secured, that is why MOL`s withdrawal does not raise concerns.

``In addition, there are other companies that want to join the consortium,`` Roiss said.

According to Roiss, Nabucco pipeline could be adapted to eliminate the Turkish portion of the pipeline, making the pipeline around 1,300 kilometers shorter and cheaper.

``Large gas discoveries in the Black Sea have changed the situation,`` he added.

BOTAS stake reduced
The portion of Nabucco belonging to Turkey`s state-owned natural gas distribution company BOTAS has dropped from 20 percent to 16.67 percent, according to an announcement from the Cabinet published in the Official Gazette last Friday.

The announcement also said BOTAS will be able to form a separate company that could be engaged in natural gas trade, investment and management for the countries involved in the Nabucco project.

The Nabucco consortium, Nabucco Gas Pipeline International, was established in 2004 to transport natural gas to Europe via Turkey. The five members, including BOTAS, were each allocated a 20 percent stake. A sixth member, Germany`s RWE, joined the group in February 2008.