Nabucco's consortium sees no threat in OMV-Gazprom agreement for its project

Oil&Gas Materials 29 April 2010 12:29 (UTC +04:00)

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

The consortium of the project of Nabucco pipeline designed to transport gas from the Caspian region and the Middle East to the EU, is confident in the success of the project, and believes that the recent signing of a cooperation agreement on South Stream between Russia and Austria will not affect its further implementation.

"The signing will not affect our project, or a timetable for its implementation," spokesperson Nabucco Gas Pipeline International GmbH, Christian Dolezal, said.

The Austrian company OMV is a shareholder and operator of the Nabucco project. Last week it signed an agreement with Russia's Gazprom within the gas pipeline project South Stream. According to the agreement, the parties agreed to start the joint training of the feasibility study of a part of the pipeline on the territory of Austria soon. The two sides also agreed to establish a joint project company for the further design, financing, construction and operation of the Austrian section of the Southern stream on a parity basis.

South Stream project envisages gas deliveries from Russia via the Black Sea to the Southern and Central Europe. It is often viewed as a competitive one to European Nabucco pipeline project. The main purpose is to diversify routes and sources of gas supplies to Europe. The agreement on cooperation in the South Stream concluded between Austria and Russia can help to accelerate the implementation of the Russian project.

Nevertheless, according to Nabucco representaitve, OMV company clarified that the Nabucco project so far is a priority project No 1. Therefore, the agreement with Gazprom on South Stream will not impact on its implementation.

Dolezal said that at present, Nabucco's consortium is fully focused on the successful implementation of the project. Last week, the consortium announced the pre-qualification tender for the purchase of durable goods, necessary for the construction of the pipeline, such as pipes, pipe fittings. Earlier this month, the consortium announced a tender for an expanded basic and detailed engineering for the Turkish section of the Nabucco pipeline, which will be more than a third line. A local engineering of the pipeline from the Bulgarian border to Ankara is under completion.

Detailed engineering is expected to be completed in other countries participating in the Nabucco project soon.

Nabucco gas pipeline project worth €7.9 billion envisages gas supply from the Caspian region to EU countries. 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. 

The construction of the gas pipeline is scheduled for 2011. The first deliveries are planned to be launched in 2014. Maximum capacity of the pipeline will amount to 31 billion cubic meters a year.