...

RWE to contribute Nabucco if project can secure enough gas

Oil&Gas Materials 18 January 2012 10:09 (UTC +04:00)

Azerbaijan, Baku, Jan. 18 /Trend A.Badalova/

German RWE's fundamental approach towards Nabucco gas pipeline remains unchanged, the company's statement received by Trend says.

"RWE aims at securing access to the Caspian gas resources for Europe and this is a basis for its plans to participate in the Nabucco development project," the RWE's statement says.

This week foreign media reported with the reference to RWE's chief executive Jürgen Grossmann, that the company could scrap its plans for Nabucco project.

He was quoted as saying that RWE's main priority is to source gas with as little investment as possible, as the power and gas utility seeks to reduce debt after Germany's shift in nuclear energy policy in 2011 hit the company's finances.

RWE in its statement said that the company is only going to contribute in building a pipeline if there is enough gas to fill it and if the project is economically viable.

"Binding gas contracts with the gas delivering countries are a precondition for the construction of any pipeline from Europe to the Caucasus," RWE said.

RWE is one of the six shareholders in Nabucco project, designed to transport gas from the Caspian region and Middle East to the European countries.

Gas to be produced during the second phase of Azerbaijani Shah Deniz gas condensate field development 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 the previously announced criteria. The decision on the preferable transportation route is expected to be made in the first quarter of 2012.

"The Shah Deniz II Consortium in Azerbaijan had announced to give such a commitment at the end of last year. Unfortunately, the decision for a preferred partner is still pending," RWE said.

With regard to the new proposed Azerbaijani-Turkish Trans Anatolian Pipeline (TANAP) RWE said that the decision to construct it has created a new situation, however, without implying that RWE will withdraw from the Nabucco project.

The Chief Executive Officer of RWE Supply & Trading, Stefan Judisch said that the company appreciates the potential option TANAP creates to substantially lower the capital commitment and achieve the ultimate aims. However this option now needs to be explored, he said.

Tags:
Latest

Latest