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Nabucco project is open to connect to other pipelines

Oil&Gas Materials 21 December 2011 20:34 (UTC +04:00)

Azerbaijan, Baku, Dec. 21 /Trend A.Badalova/

Nabucco gas pipeline project which is designed to transport gas from Caspian region and Middle East to European countries is open to connect to other pipelines, Nabucco Gas Pipeline International GmbH Managing Director Reinhard Mitschek said in the interview with Trend.

"We also demonstrated the openness to connect to other pipe pieces if the overall concept of Nabucco will strengthen with that and added value can be delivered," Mitschek.

Talking about the possibility for the new Azerbaijani-Turkish gas pipeline Trans Anadolu (TANAP) to be connected to the Nabucco gas pipeline, Mitschek said that irrespective of the TANAP concept, Nabucco seems as a stable predictable and very promising project.

"Nabucco with the intergovernmental agreement and Project Support Agreements and with the support from the European Commission is the best established project with a very reliable feasibility study," Mitschek said.

He stressed that the market participants should decide which infrastructure to be used to bring gas from supplies region to the demand market in Turkey and Europe.

Once the certain decision in this direction will be taken, Mitschek said the project's total cost issue will be analyzed.

Earlier Turkish Energy Minister Taner Yildiz said that TANAP which will be built on the Turkish territory can be connected to the Nabucco gas pipeline.

The proposed Trans Anadolu pipeline will stretch from the eastern border of Turkey to the western border of the country.

The estimated cost of Nabucco project at 7.9 billion euros is being reviewed. The exact cost of the project will be set after the detailed engineering is completed.

Mitschek said that Nabucco consortium is in a very good contact with the International financial institutions, such as EBRD, EIB and IFC.

"We have signed a mandate letter in 2010 with these banks," he said. "Meanwhile we provided a lot of project documentation to the banks. We are in contact with the export credit agencies and export development banks from the various regions where the major materials like pipelines will be delivered."

Mitschek said that once the successful "open season" procedure takes place, the reliable financing and guarantees structure for the project will be provided.

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