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Nabucco not to help to change gas prices: EU energy minister

Oil&Gas Materials 16 July 2009 17:24 (UTC +04:00)
Nabucco not to help to change gas prices: EU energy minister

Azerbaijan, Baku, July 16 / Trend , A.Badalova/

The European Energy Minister does not expect gas oil price change in Europe after launching the Nabucco gas pipeline in 2014 which will provide only 5 percent of demand for this kind of fuel in Europe.

"Gazprom will not lose out [after launching the Nabucco], I should imagine, but it will face competition.  I don't see prices [of gas] being affected much but I do see that the level of service will improve," European Energy Commissioner Andris Piebalgs said.

He said Nabucco is building a pipeline that will eventually bring about 5% of our gas to the EU - perhaps more.

"That [5 percent] is not very much, but for some countries it will be a revelation. For the countries from Poland to the Mediterranean there has always been a reliance on one source of gas - Gazprom. Nabucco will bring other sources off gas," the EU Energy Minister believes.

The Nabucco project worth 7.9 billion euro will deliver Azerbaijani and Central Asian gas to the EU. Nabucco shareholders are the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE with 16.67 percent each

Construction of the pipeline is expected to begin in 2011 and the first supplies - in 2014. Its maximum capacity will be 31 billion cubic meters per year. An investment solution on the project will be made in the first quarter of 2010.

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