"Nabucco" preferable project to Europe from geopolitical point of view

Oil&Gas Materials 29 July 2011 18:46 (UTC +04:00)

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

The unfavorable political situation in the countries participating in the "Islamic gas pipeline" project negatively affects the chances of its implementation.

At the same time, this makes "Nabucco" project preferable from a geopolitical point of view, Energy Security Analysis (ESAI) expert Andrew Reed said.

He said that on the one hand, "Arab spring" has put the regime of Syrian President Bashar al-Assad under a threat. On the other hand, the West's relations with the regimes of these countries are weak.

"These factors make "Nabucco" project and Caspian gas preferable to Europe in terms of geopolitical interests and political stability," he told Trend via e-mail.

Iran, Iraq and Syria signed an agreement on July 25. It provides the construction of the gas pipeline from Pars Special Economic Energy Zone (PSEEZ). It will unite the Iranian region Asalue with Syrian Damascus. The length of pipeline is 5,000 km.

The project will cost $10 billion. The gas pipeline will stretch from the Iranian gas-bearing region Asalue in the Khuzestan province, to the Iran-Iraq border, and further to Syria, Lebanon, and across the Mediterranean Sea into Europe.

Its capacity will be 110 million cubic meters of gas per day. The agreement for gas transit to Europe, Iraq, and Syria will be completed by late 2011. The project will be implemented within five years.

Nabucco gas pipeline project involves the gas supply from the Caspian region and Middle East to the EU. 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 2013, the first supplies - in 2017. Maximal capacity of the pipeline will hit 31 billion cubic meters per year.

Whether Iranian gas will eventually reach Europe by pipeline will very much depend on the political climate in Iran, Editor-in-chief at Eurasia Energy Observer Andrej Tibold told Trend earlier.