Nabucco consortium expects growth in gas demand in European market

Oil&Gas Materials 29 March 2010 18:52 (UTC +04:00)

Azerbaijan, Baku, March 29 / Trend A.Badalova /

In 2010, gas demand in the EU countries will increase by13 billion cubic meters - up to 581 billion cubic meters, Nabucco Gas Pipeline International Gmbh's presentation reported.

Previously, gas demand was forecasted at 630 billion cubic meters in 2010 compared to 599 billion cubic meters in 2009. The presentation reports that the forecast on gas demand have been reduced (almost more than 50 billion cubic meters) due to economic recession, which had a significant impact on fuel demand in Europe.

In 2012, gas demand in EU countries is forecasted at 617 billion cubic meters compared to 658 billion cubic meters forecasted earlier. In 2015, demand is projected to increase to 656 billion cubic meters compared to 699 billion cubic meters, projected earlier.

Based on the presentation, despite the lowered forecasts, Nabucco Gas Pipeline Int generally expects growth in gas demand in the market during this period. Thus, according to new projections, the total growth in gas demand in EU countries from 2010 to 2015 will amount to 12.9 percent, while it was only 10.95 percent in the old forecast.

According to the European Gas Union Eurogas, today the main source of gas supply to EU is an internal production, whose share in total shipments in the region was 36 percent in 2009. The main external sources of supply to EU are Russia (22 percent), Norway (19 percent) and Algeria (10 percent). Eurogas forecasts that Europe could increase its gas imports to 74 percent by 2030.

To meet the growing gas demand in Europe and diversify sources of supply in the region is planned to implement several pipeline projects, the priority of which for EU is Nabucco pipeline project, which aims to transport gas from the Caspian region and the Middle East to EU.

Nabucco gas pipeline project is worth €7.9 billion. Participants of the project are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE companies. Each of participants has equal share to the amount of 16.67 percent. Construction of gas pipeline is planned to be launched in 2011, the first supplies - in 2014. Maximal capacity of the pipeline will hit 31 billion cubic meters per year.  Nabucco Gas Pipeline International shareholders will invest 30 percent of total cost of the project, the rest 70 percent will be paid owing to loans.

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