Nabucco gas supply uncertainty

Key stakeholders announce that as long as there is uncertainty over the gas supply sources, a final investment decision on Nabucco gas pipeline project cannot be made.

MOL’s CEO Mr Jozsef Molnar said that "For the time being, there is no obvious source of gas and there is also much uncertainty about the volume of the necessary investments. As such we can't even begin to discuss the project's returns."

MOL is a 100% owner of FGSZ Natural Gas Transmission Company, which is one of the six shareholders in Nabucco gas pipeline project. The project is designed to transport gas from the Caspian region and Middle East to Europe. The project's other partners include Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV and German RWE.

The main source for the Nabucco project is gas produced at the Shah Deniz II gas condensate field development in Azerbaijan. In addition to this, recently an official representative of Nabucco Gas Pipeline International said that the project's consortium considers northern Iraqi gas as an option to secure future gas supply to Europe.

The Shah Deniz consortium's official representative also stated that Nabucco submitted the project's new conception, according to which the pipeline will be laid from the Turkish-Bulgarian border to Baumgarten in Austria. The original pipeline’s route was expected to run through Turkey, Bulgaria, Romania, Hungary and Austria over a distance of 3900 km.

Read the article online at: https://www.worldpipelines.com/business-news/27022012/nabucco_gas_supply_uncertainty/