Romania ratifies Nabucco Project Support Agreement

Business Materials 14 March 2013 14:48 (UTC +04:00)

Azerbaijan, Baku, March 14 / Trend /

Romanian President Traian Băsescu ratified the NABUCCO Project Support Agreement (PSA) signed between Romania, NABUCCO Gas Pipeline International GmbH (NIC) and the NABUCCO National Company Romania, NIC reported on Thursday.

According to Reinhard Mitschek, Managing Director NABUCCO Gas Pipeline International GmbH, Nabucco Consortium welcomes the renewed support of Romania for the NABUCCO pipeline. "This is another important step forward, illustrating the advanced stage of development of the NABUCCO pipeline, a project which will ensure the diversification and security of energy supplies in Europe. Progress is far advanced in all areas: legal, engineering and commercial, and we are looking forward to further cooperation with the Romanian authorities as the Project continues," he said.

Transgaz, the Romanian shareholder of NABUCCO, has recently approved the Equity Option and Funding Agreement and the Cooperation Agreement signed by NABUCCO Shareholders with Shah Deniz Partners.

On June 8, 2011 Project Support Agreements (PSAs) between NABUCCO Gas Pipeline International GmbH and the responsible ministries of the transit countries were signed. The main elements of the PSAs are the affirmation of an advantageous regulatory transit regime under EU law; the protection of the NABUCCO Pipeline from potential discriminatory changes in the law; and support for legislative and administrative actions for the further implementation of the project.

In June, 2012 the consortium of Azerbaijani Shah Deniz gas field development chose Nabucco West as the single pipeline option for the potential export of Shah Deniz Stage 2 gas to Central Europe. The final decision on the pipeline route to transport Azerbaijani gas to Europe will be made in June, 2013.

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

The project's current shareholders are Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV, German RWE and Hungary's FGSZ.