Nabucco final investment decision postponed
Azerbaijan, Baku, Nov. 11 / Trend A.Badalova /
A final investment decision on the Nabucco gas pipeline project has been postponed to late 2010, official project representative Christian Dolezal said today.
"The fourth quarter of 2010 is the deadline negotiated by the shareholders in November. We expect a final investment decision in the fourth quarter," Dolezal was quoted as saying by Reuters.
The consortium recently announced the start of detailed negotiations with potential lenders such as the European Investment Bank, European Bank for Reconstruction and Development and export credit agencies. The decision may have been postponed from early 2010 due to ongoing negotiations in difficult economic times.
According to the Nabucco consortium, talks are still under way with creditors to determine basic funding parameters. The postponement of a final investment decision will delay the adoption of other important aspects of the project, such as the evaluation of environmental and social impacts, which in themselves will delay the project's implementation.
According to Dolezal, pipeline construction is still set to begin in 2011.
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.