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Nabucco expects final investment decision in early 2013

Oil&Gas Materials 28 November 2011 16:57 (UTC +04:00)
The final investment decision on the Nabucco gas pipeline project will be made in early 2013, said Nabucco Gas Pipeline International GmbH Managing Director Reinhard Mitschek.
Nabucco expects final investment decision in early 2013

Azerbaijan, Baku, Nov. 28 /Trend A.Badalova/

The final investment decision on the Nabucco gas pipeline project will be made in early 2013, said Nabucco Gas Pipeline International GmbH Managing Director Reinhard Mitschek.

"Nabucco Gas Pipeline International GmbH expects to make a final investment decision about the pipeline early in 2013 and start construction later that year", Mitschek said at a presentation in Bucharest.

Nabucco is a pipeline project designed to transport gas from the Caspian region and Middle East to the European countries.

The total length of the pipeline is 3,900 kilometers with a maximum capacity of 31 billion cubic meters per year. The project's partners include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and the German RWE.

Mitschek said the environmental assessment is planed to be completed in 2012. It is also expected to complete all engineering design (FEED) works in the second quarter of 2012.

Previously, Nabucco Gas Pipeline International GmbH told Trend that detailed engineering works are 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.

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.

Mitschek said the positive decision from Shah Deniz consortium will allow to start "open season" procedure, which involves putting on sale the capacity of the Nabucco pipeline.

According to Mitschek, the procedure may be started at the end of the first quarter of next year.

The consortium plans to construct compressor stations and the pipeline and to sign contracts with local suppliers to prepare for the construction.

"We will also contract logistics infrastructure companies here in the country and then of course for the construction we'll invest about 1.2 billion euro to 1.5 billion euro in Romania," Mitschek said.

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