Germany’s Bayerngas stops talks with Nabucco

Azerbaijan, Baku, Jan. 28 / Trend A.Badalova/

Germany's Bayerngas has stopped talks with Nabucco consortium on joining the project, Reuters reported with the reference to the company's spokesman.

According to the spokesman, Bayerngas was adjusting its strategy and was more focused on investing in pipelines in Germany.

In late September, 2011 Nabucco Gas Pipeline International GmbH announced Bayerngas' intention to become the seventh shareholder in the Nabucco project.

In summer, 2012 it was announced about the short break in talks between the sides because of the changes in the company's executive board. However, reportedly, in the beginning of autumn Bayerngas came back to the consortium with the wish to continue talks and to join the project.

Nabucco West is a short-cut version of Nabucco project, which envisages construction of the pipeline from the Turkish-Bulgarian border to Austria.

The project's current shareholders are Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV, German RWE and Hungary's FGSZ. Gas to be produced within the second phase of Azerbaijani Shah Deniz gas condensate field development is considered as the main source for the project.

Earlier Nabucco shareholders and Shah Deniz partners signed Cooperation Agreement and Equity Option and Funding Agreement.

Equity Option and Funding Agreement, in particular, envisages joint funding of the development costs of the Nabucco West up to the pipeline selection decision for Shah Deniz' European export route, as well as the granting to Potential Investors of equity options of 50 percent to participate as shareholders in NIC following a positive pipeline selection decision by the Shah Deniz Consortium in favour of Nabucco West.

Do you have any feedback? Contact our journalist at agency@trend.az