France's GDF Suez to get Nabucco stake
By Aynur Jafarova
French energy group GDF Suez will join Austria's OMV, Hungary's FGSZ, Romania's Transgaz, Bulgaria's BEH and BOTAS of Turkey and become a shareholder in the Nabucco gas pipeline project, the Nabucco Gas Pipeline International consortium said on May 28.
Nabucco West is a short-cut version of the Nabucco project, which envisages construction of a pipeline from the Turkish-Bulgarian border to Austria.
Nabucco Gas Pipeline International GmbH welcomed the announcement that GDF Suez has concluded a Share Purchase Agreement with OMV in Vienna.
"The pan-European significance of Nabucco is considerably reinforced with the agreement signed today," CEO of Nabucco Gas Pipeline International Reinhard Mitschek said. "The entry of GDF Suez strengthens the shareholder structure of Nabucco significantly and paves the way to the French market. The industry expertise of GDF Suez as the operator of the largest gas transport network in Europe and their status as the second-largest buyer of natural gas in Europe are of immense advantage to the project. GDF Suez is already very active in the Nabucco countries."
CFO of Nabucco Gas Pipeline International GmbH Frank Siebert in turn said, "We welcome the entry of GDF Suez into the project. A broad shareholder structure composed of European industry leaders is an important step for a strong financing structure."
The consortium developing Azerbaijan's giant Shah Deniz field in the Caspian Sea is considering Nabucco West and Trans Adriatic Pipeline (TAP) for gas export. The consortium will make its final decision on the pipeline route in June and a final investment decision by October 2013.
The TAP project is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into Western Europe. TAP's initial capacity will be 10 billion cubic meters per year, but it is easily expandable to 20 billion cubic meters.
The gas which will be produced during the second stage of Shah Deniz field development is considered as the main source for the Nabucco West and TAP projects.
Both Nabucco West and TAP are part of the Southern Gas Corridor, which is one of the European Union's priority energy projects. The Southern Gas Corridor aims at diversifying the routes and sources of energy supply, thereby increasing secure delivery.
Shah Deniz, which is one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas.
Overall, the Shah Deniz field has proven to be a secure and reliable supplier of gas to Azerbaijan, Georgia and Turkey as well as Europe.