Official: Nabucco consortium continues financing project development works
Azerbaijan, Baku, Aug. 7 / Trend A.Badalova /
Nabucco consortium continues financing development works within the project, an official representative in Nabucco Gas Pipeline International GmbH told Trend.
"We continue to finance ongoing development works in the project, including in the areas of engineering, as well as commercial and financial structuring of the project," the official wrote in an e-mail.
Nabucco West is a short-cut version of Nabucco project, which envisages construction of the pipeline from Turkish-Bulgarian border to Austria. Gas to be produced within the second phase of Azerbaijani Shah Deniz gas field development is considered as the main source for the project.
The project's current shareholders are Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV, German RWE and Hungary's FGSZ.
Earlier Bloomberg reported with the reference to Romanian Transgaz official, Nabucco's board of directors plans to decide on the capital increase, aimed at securing the financing needed to go ahead with the project. According to him, the Hungarian MOL decided to stop injecting funds into the pipeline, however the company may reconsider its position on the planned capital increase followinf the Shah Deniz consortium's decision.
In June the Shah Deniz consortium selected Nabucco West as the single pipeline option for the potential export of Shah Deniz Stage 2 gas to Central Europe. The final decision on pipeline export route is expected in 2013.
The official in Nabucco Gas Pipeline International said the planned capital raise is not an unusual step, and is part of the financing structure of Nabucco project.
Earlier Nabucco Gas Pipeline International GmbH spokesman, Christian Dolezal told Trend that Nabucco West can reach its financial close very soon, adding that the financial institutions are ready to fund the project.
Nabucco West project's debt to equity ratio is set to be 70:30 - that means Nabucco's shareholders will invest 30 percent of total cost of the project, and the rest 70 percent will be paid owing to loans.