Azerbaijan, Baku, June 18 / Trend , A. Badalova/
European Bank for Reconstruction and Development plans to be a "senior participant" in the financing of the Nabucco gas pipeline to boost energy security in Europe, Bloomberg reported.
"EBRD may lead a group of banks to finance as much as 1 billion euros ($1.4 billion) in the pipeline that will bring Caspian Sea gas to Europe, Riccardo Puliti, EBRD's energy business group director, said in an interview in Budapest today.
The size of the bank's involvement will depend on market conditions, he said.
EBRD President Thomas Mirrow reiterated support for project and readiness to finance 25 percent of Nabucco's value.
EBRD is also helping build gas storage facilities across Eastern Europe to boost energy security.
So, earlier the bank declared intention to provide the Hungarian energy company MOL with eight-year loans wqorth 200 million euros for the completion of strategic underground gas storage (UGS) Szoreg 1 in the southern part of the country.
Puliti said this project will enhance the energy independence of Hungary and will make Central Europe more adapted to any suspension of gas supplies.
The Nabucco project worth €7.9 billion will deliver Azerbaijani and Central Asian gas to the EU. Construction of the pipeline is expected to commence in 2010. Its maximum capacity will be 31 billion cubic meters per year.
Nabucco shareholders are the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE with 16.7 percent each.
Construction of the Nabucco gas pipeline project is expected to begin in 2011. The first deliveries will take place in 2014. It will have capacity of 31 billion cubic meters per year.