Nabucco consortium: Tariff determination for Open Season progressing
Azerbaijan, Baku, Nov. 21 /Trend A.Badalova/
The tariff determination for Nabucco project's "Open Season" procedure is progressing, Nabucco Gas Pipeline International GmbH reported in its Status Report for the third quarter of 2011.
Open season process involves putting on sale the capacity of the Nabucco pipeline. During the procedure, shareholders of the project 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 the principles of transparency.
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, which is expected later this year.
According to the report, all engineering design (FEED) works on Nabucco project, awarded and progressing, are planned to completed in the second quarter of 2012.
Earlier the official representative of Nabucco Gas Pipeline International GmbH told Trend that detailed engineering work is progressing well and will be completed soon.
The results of detailed engineering will enable to set the cost of the Nabucco project. So far, it was estimated at 7.9 billion euro, however, after complex analysis this figure can be increased given different factors. In particular, increasing cost can contribute to rise in commodity prices, as well as increasing the pipeline's length.
In May 2009, Nabucco entered the stage of technical detail engineering. The participants defined five local sub-contractors for engineering, conducting the assessment and examination of the technical details of pipeline route in the four transit countries, including Austria, Hungary, Romania, Bulgaria and Turkey. The British Penspen company designs the detailed technical plan for the Nabucco pipeline.
The 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 gas pipeline is planned to be launched in 2013. The capacity of the pipeline with a length of 3,900 km will hit 31 billion cubic meters per year.
According to the report, the consultations on Environmental & social assessment (ESIA) are ongoing.