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Managing Director: Nabucco can offer unified transport conditions

Oil&Gas Materials 17 November 2011 13:08 (UTC +04:00)
Nabucco gas pipeline project is the only project which can offer unified transport conditions from the eastern Turkish border to the Central Europe, Nabucco Gas Pipeline International GmbH Managing Director Reinhard Mitschek said in an interview with EurActiv
Managing Director: Nabucco can offer unified transport conditions

Azerbaijan, Baku, Nov. 17 /Trend, A.Badalova/

Nabucco gas pipeline project is the only project which can offer unified transport conditions from the eastern Turkish border to the Central Europe, Nabucco Gas Pipeline International GmbH Managing Director Reinhard Mitschek said in an interview with EurActiv.

"That is what makes us unique and that is what the markets appreciate and the countries appreciate," Mitschek said.

Nabucco gas pipeline project is designed to transport gas from the Caspian region and Middle East to Europe. The project is planned to start construction in 2013 and the first supplies will be commissioned in 2017. The total length of the pipeline is 3900 kilometres with a maximum capacity of 31 billion cubic metres per year. The project's partners include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and the German RWE.

The gas that will be produced within the second phase of the development of Azerbaijani Shah Deniz field is considered as the main source for the project.

On Oct. 1, Nabucco with the other pipeline projects (TAP, ITGI) submitted their final proposals to the Azerbaijani side, which will review them in accordance with previously announced criteria.

With regard to the project's cost Mitschek said that the investment figures can be fine-tuned after the finalisation of the engineering design and also after the open season.

"But I am confident that - and this was shown by our sensitivity analysis - we can offer transportation services under competitive conditions," Mitschek said.

Mitschek said that in the first open season the project expects to obtain 21 billion cubic meters at least for transportation. "That is the quantity with which we will use for investment decisions and to start with construction, he said. I expect a very quick build-up from the 21 billion to 31 billion. I suspect even before we start the transportation in 2017 we will already have bookings for 31 billion cubic meters," he said.

Open season process involves putting on sale the capacity of the Nabucco pipeline. During the procedure, the project shareholders will receive up to 15 billion cubic meters of gas per year (50 percent of the total transport capacity of the pipeline), the remaining 50 percent will be offered to third parties on equal conditions based on transparency principles.

The "Open Season" is expected to start after the shareholders of the project receive the first results of discussions with potential gas suppliers. "Open Season" is the basis for making a final investment decision on the project, expected later this year.

Mitschek also mentioned that the consortium deepened the discussion with the financial institutions such as the European Investment Bank, the EBRD (European Bank for Reconstruction and Development) and the IFC (International Finance Corporation).

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