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Nabucco Gas Pipeline is Relevant for European Energy: US Senator (video)

Oil&Gas Materials 25 August 2008 17:52 (UTC +04:00)

Azerbaijan, Baku, 25 August / Trend corr. V.Sharifov / An official representative of the United States has discussed in Baku the prospects of Nabucco gas pipeline construction to deliver gas from the Middle Asia and Azerbaijan to Europe.

"We have discussed the Nabucco project and met with BP representatives," Senator Richard Lugar, a member of the United States Committee on Foreign Relations, said at the news-conference on 25 August.

According to Lugar, the United States continues to hold talks with Turkey, which is one of the transit countries for Nabucco, which will be put into operation in 2013 and to be laid to Austria.

"There are many problems to be solved [work principles over the pipeline], including to define which gas share will be transited to northern countries [Europe]," Senator said.

The United States has confirmed again that it consider Nabucco as an attractive project and will discuss the issue with Hungary, Rumania and Ukraine.

"Nabucco is relevant project for European energy," Lugar said.

According to RIA Novosti, Lugar has announced that "after Russia's interference into Georgia" he would visit nine countries to discuss the "energy security in Trans Atlantic alliance", as well as issues regarding to lay new pipes including the Nabucco project.

Within two weeks Lugar will visit France, Georgia, Azerbaijan, Turkey, Rumania, Hungary, Ukraine, Germany and Belgium.

Senator will pay a visit to Turkey as soon as his visit to Azerbaijan is end.

From 27 to 29 August, American Senator will visit Bucharest and later Budapest.

From 30 to 31 August, Lugar will leave Hungary for Kiev to hold talks in Ukraine on security and energy issues. Lugar is expected to visit Berlin on 2 September to discuss the aforesaid issues.

From 3 to 4 September, Senator will leave Berlin for Brussels to discuss "Georgia, energy, Atlantic alliance, climate changes and genetic changed seeds" issues with NATO and EU officials, is stated in the statement released by Washington.

Nabucco Gas Pipeline International established to manage Nabucco gas pipeline projects, states that the market researches demonstrate 'huge demand' for pipes. In the interview to Nefte Compass, Reinhard Mitschek, Managing Director of Nabucco Gas Pipeline International, said that Nabucco consortium participants, which $11.6bln cost, "want to launch to construct the pipeline in 2010", as it was planned  earlier.

The market investigations, which were completed in July, have demonstrated that potential consignor of goods want to get more than 100% carrying capacity from Nabucco pipeline, which will comprise 8bln cu m gas in 2012 and expected to be increased by 31bln cu m to 2018 or 1029. According to Mitschek, interests of consignors of goods in the pipeline may reach 65bln cu m gas per year. However, consortium 'has not yet plan' to construct Nabucco more than 31bln cu m capacity per year.

The investigations demonstrate huge demand for Azerbaijani, Turkmen and Iraqi gas in Europe, which will be transported via Nabucco, via the territory of Georgia, as well as on Iranian gas. There is also an interest in small volume from Egypt and Syria.

"Over 50 companies were asked and about 20 have reacted positively," Mitschek said and added that Nabucco participants - OMV, MOL, Bulgargaz, Transgaz, Botas and RWE were also asked.

In 2007, the gas demand amongst 27 EU countries was 500bln cu m, 300bln cu m of the volume was imported and 200bln cu m produced in Europe. The total gas usage in Europe will increase to 700bln cu m per year and production will drop to 100bln cu m within the next 10-15 years.

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