Azerbaijan, Baku, July 6 / corr Trend A.Badalova /
Nabucco gas pipeline, which is intended to transport gas from the Caspian region to EU countries, is likely to increase the number of its shareholders by the end of the year. Abu-Dhabi International Petroleum Investment Company (IPIC) showed interest in the project, desiring to purchase shares in the project by the end of 2010, a source close the company said.
IPIC, a subsidiary of the Abu-Dhabi International Oil Company, is responsible for foreign investments in oil and chemical sector of the country.
Participants of the project are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE companies. Each of participants has equal share to the amount of 16.67 percent.
Nabucco has repeatedly stated it welcomes interest which companies take in this project. Nabucco consortium always stated that we are open for the seventh shareholder if it would further strengthen the project," Spokesperson Nabucco Gas Pipeline International GmbH, Christian Dolezal, told Trend earlier.
The investment company's interest in participating in the project and in investing the Nabucco gas pipeline testifies for confidence in its vitality.
By participating in the project IPIC could benefit not only by further resale of its share in the project, but also contribute its county in its intention to develop export considerably. The country is one of the biggest export of liquefied gas.
The UAE is obliged to import gas due to its inability to meet domestic gas demands through its own production. According to BP, the country's gas demand made up 59.1 billion cubic meters of gas in 2009, while gas production hit 48.8 billion barrels. The proven gas reserves in Turkmenistan as of the beginning of 2010, constituted 6.43 trillion cubic meters, or 3.4 percent of the overall world proved natural gas resources.
UAE has taken active interest in Turkmen gas over the past time, in particular, the country is in talks over investing the development of big Turkmen fields. To invest in Turkmenistan the UAE intends to use state investment fund in the amount of $328 billion.
Turkmen gas can be used in UAE as a fuel for export to Europe along with meeting the domestic demand.Nabucco is the most real option in this regard. IPIC has a 20 percent stake in Austrian OMV, which is the operator of the project Nabucc".
Purchase of a stake in Nabucco by IPIC and then its further re-sale to Arab companies, which in their turn could benefit from this deal, would be n benefit of the project, especially, assist in acquiring resource base. Azerbaijan, Iraq and Turkmenistan are regarded as major sources to fill the Nabucco gas pipeline, whose construction is scheduled to commence in 2011.
UAE, along with Turkmen gas, may also contribute to purchase of Iraq gas by Europe. Crescent Petroleum from UAE and its subsidiary Dana Gas formed with IMV and MOL a consortium in May 2009 to produce has in the North Iraq, which will be transported to European countries through the Nabucco pipeline.
Thus, IPIC's decision to purchase a stake at Nabucco can be regarded as a profitable and positive step for both company and project.
The project is valued at 7.9 billion euro. Nabucco Gas Pipeline International shareholders will invest almost thirty percent of the total cost of the project on the base of participation share and the rest 70 percent will be paid though loan.