It’s early to bury Nabucco

It’s early to bury Nabucco

Azerbaijan, Baku, Oct. 16 / Trend /

Recent events around the "Southern Gas Corridor" project gave some grounds for media comments such as Nabucco, being one of three projects for the future gas corridor, cab be buried as an option.

In fact, Chief Executive of Nabucco shareholder OMV Gerhard Roiss said first gas supplies would flow through Nabucco in 2018 and that this "was the latest information which we have." Following this, on Oct.13 EU Commissioner Gunther Oettinger stated about the increased cost of the project - from 10 to 14 billion euros instead of the previously estimated 7.9 billion.

One can agree that such messages are not encouraging at a time when Azerbaijan studies and analyzes proposals on projects, including Nabucco, to transport its gas to Europe.

Earlier, on Oct. 3, Iraq, being one of the expected key suppliers to Nabucco, expressed its attitude to the project.

"It is too early to speak about Iraqi gas supplies to Nabucco, as the country's gas production has not reached the desired level to export it abroad," Official representative of the Iraqi Oil Ministry Asim Jihad said.

Speaking at the meeting of the Security Council on Oct.14, Russian President Dmitry Medvedev once again outlined Russia's position over the construction of the Trans-Caspian gas pipeline, which is part of the Nabucco project. He said "it is quite a complex issue which, of course, is directly dependent on the Caspian Sea status and requires the coordination of positions of all member states of the Caspian summit."

Thus, the negative psychological background was created for the choice in favor of the Nabucco project.

However, Nabucco Gas Pipeline International GmbH stated that it does not plan to make any changes in the terms of the project realization.

"There are no changes planned. We together with our shareholders have always stated that we are aligning our efforts with the gas sources and now we are waiting for the decision of the Shah Deniz Consortium," Nabucco project official representative Christian Dolezal said on Oct.12.

Dolezal said the pipeline is to be ready for the period when the gas will be available for export.

"We want to start construction in late 2013 and we want to be finalize our works in late 2017, so that everything is in place when the gas is ready for export," he said.

Nabucco gas pipeline project's cost is currently under review, Dolezal added. "The CAPEX figure of the project is 7.9 billion euro and the figure is currently under review," he said. Dolezal nioted that the investment costs of 7.9 billion euro are based on the feasibility study. The exact cost of the project will be set after the completion of the detailed engineering.

Early this year Managing Director of Nabucco Gas Pipeline International Reinhard Mitschek said that the estimated costs of the pipeline are likely to be revised upwards to reflect the increased length. Another factor which would lead to change in the project's cost can be commodity price dynamics.

Another positive message came from Munich. Germany 's Bayerngas GmbH has started negotiations with the Nabucco consortium on joining the project.

"We have just started the negotiations to be the seventh shareholder in the Nabucco project," Spokesman for the Munich-based Bayerngas Dirk Barz told Trend on Oct.10. "We hope that they will be successful." Reinhard Mitschek said the intention of the German company is a great step forward for Nabucco.

Austrian President Heinz Fischer's official visit to Baku and Ashgabat was another event in support of the Nabucco project.

During a press conference in Baku, President Fischer has stated "... in this project [ Nabucco ], we see the expression of important interests and positions, as the European Union and Austria .... While talking to you, we again convinced of that Azerbaijan attaches great importance to these relations. We consider your thoughts about this as very important and we want to rightly interpret them. "

Answering journalists' questions, he said 'the Austrians and Europeans, I believe, hold a special, good position towards the Nabucco project. "We show a special interest in this project. It is especially good for Austria, as the project leads directly to Austria. We have the opportunity to go to other consumers. We are surrounded by 100 million Europeans and they have the opportunity to use this gas. This is Germany, Slovenia, Czech Republic, Croatia, Slovakia - our neighbors. This will be provided not only for our neighbors, but also for the whole Europe. I think that this project is important for Azerbaijan. It is important for us to ensure confidence in the planning," he noted.

"This should be such a decision that we did not lose time, and that Azerbaijan could maximum export its gas resources. We are in talks to combine these two components. I repeat that we must take this decision together," President Ilham Aliyev stated.

"We are interested in maximizing the sales of our gas potential. Today, the Shah Deniz project is in foreground as our major gas project. But at the same time, the recently opened Umid field of SOCAR also gives very high expectations. The Absheron field recently opened by Total and Gaz de France also has large gas reserves. I can say that Azerbaijan's proven gas reserves increased by about 600 billion cubic meters over the past year," Aliyev added.

This, apparently, will become a crucial factor for Azerbaijan in the selection of the project. Only Nabucco can allow Azerbaijan to maximum export its gas reserves. As for timing, the chances are the same for all projects: any of the selected pipelines could be commissioned only in 2017, when the first gas from the Shah-Deniz-2 project will be produced.

The South Corridor is a priority EU energy project diversifying energy supply routes and sources and increasing EU energy security. The Southern Corridor includes the Nabucco gas pipeline, Trans Adriatic Pipeline (TAP), White Stream, and ITGI (Turkey-Greece-Italy pipeline).

The contract to develop the offshore Shah Deniz field was signed June 4, 1996. Participants in the agreement are: BP (operator) - 25.5 percent, Statoil Hydro - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR-10 percent.

Nabucco gas pipeline project is designed to supply gas from the Caspian region and Middle East to the EU. 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. Construction of gas pipeline is planned to be launched in 2013, the first supplies - in 2017. Maximal capacity of the pipeline will hit 31 billion cubic meters per year.

El Al to launch Tel Aviv - Dubai flights next month
El Al to launch Tel Aviv - Dubai flights next month
Israel's Netanyahu says will visit Bahrain soon
Israel's Netanyahu says will visit Bahrain soon
Israeli airline El Al announces direct flight route to UAE
Israeli airline El Al announces direct flight route to UAE
Loading Bars
Latest
Any result that acceptable for Azerbaijan - acceptable for Turkey too, FM says
Volume of paid services in Azerbaijan’s Nakhchivan Autonomous Republic down
Azerbaijan shows aerial footage of Shusha city (VIDEO)
Kazakhstan eyeing to develop information system for accounting of oil and gas condensate
Anglo Asian Mining's production of precious metals in Azerbaijan may decrease
Uzbekistan eyes to increase share of renewable energy sources by 2030
Airbus CEO says industry might need until 2025 to reach pre-crisis levels
Parliament's plan to increase subsides - costly for Iranian government
Ukrainian companies enter Uzbek commodity exchange
National Bank of Georgia reveals data on losses of commercial banks
Import of sugar and confectionery by Azerbaijan down
Demand for Turkish electrical goods on Kazakh market grows in 10M2020
Azerbaijan confirms 1,259 more COVID-19 recoveries
Bahar Azadi gold coin price again falling in Iran
Azerbaijan discloses data on destroyed houses in liberated Fuzuli district
Baku Media Center prepares video covering Armenian vandalism on occupied territories of Azerbaijan (VIDEO)
Russian president hopes for participation of int’l organizations in Karabakh conflict settlement
Power abuse by major states prevents resolving conflicts - Russian FM
Uzbek-Korean JV to buy electrical products via tender
Turkmenistan offers business opportunities for Switzerland in number of fields
North-South Corridor - on Iran's agenda - Minister of Roads and Urban Development of Iran
Turkish, Russian military personnel to jointly patrol in Nagorno-Karabakh - Turkish MoD
Azerbaijan shows footage from Abdal, Gulabli villages of Aghdam district (VIDEO)
Egyptian air operator enters Uzbek market
Uzbekistan to introduce changes to electricity payments in 2021
Iran assigns more funds to complete unfinished projects
Turkmenistan's Turkmennebit opens tender for purchase of equipment
Azerbaijan’s startup sector expects big investments
Iran's ten-month import of steel from Turkey drops
Tesla set to breach $500 billion in market value
State budget for 2021-2023 approved in Kazakhstan following amendments introduction
Kazakhstan's bitumen output exceeds 2020 plan as maintenance works held country-wide
Port of Baku reveals total 10M2020 cargo shipments
New railway vehicles put into operation in Iran
Iran`s Zarif to visit Moscow and Baku despite postponement
Kazakhstan looking to double renewables share in electricity production
Iran continues to cut reliance on oil revenue
Volume of container transshipment between Kazakh, Azerbaijani ports almost triples
LUKOIL refusing plans to construct giant petrochemical complexes
Iran, Qatar sign an extensive Memorandum of Understanding to facilitate cooperation
Switzerland names main trade statistics with Turkmenistan
Dry cargo transshipments through Baku port grow in 10M2020
LUKOIL says reducing oil exports to Europe is inevitable
Georgia receives new buses of modern standards
Georgian hazelnuts exports up
Georgia sees increase in export of tangerines
Ryanair wants to be 'at front of queue' for new 737 MAX order
Azercell’s Mobile Eye Clinic joins campaign for IDPs initiated by the UN (PHOTO)
El Al to launch Tel Aviv - Dubai flights next month
Kazakhstan’s third-quarter economic performance benefits from recovery of oil prices
Azerbaijan informs UNESCO, ISESCO about results of initial monitorings on liberated areas
Turkmenistan’s private sector participates in dev't of poultry farming
Iran discloses plan on creation of new jobs in Yazd Province
Destroyed Armenian positions firing at Azerbaijani army during recent hostilities shown (PHOTOS)
Central Bank of Azerbaijan discloses data from foreign exchange auction
CBI announces Iran's external debt
Azerbaijan starts to grow bananas - Azerbaijani Ministry of Agriculture
Azerbaijani servicemen help Armenians to move belongings from villages of Aghdam district (VIDEO)
PAYSIS expanding range of innovative services in Azerbaijan
Iran reveals COVID-19 data for November 24
E-Space reveals volume of EVs registered in Georgia
Azerbaijan discloses volume of tobacco harvested this season
Russian insurance agency to fund Uzbekistan’s hydrocarbon raw materials production
Iran to boost apple production
Georgia reveals volume of exported apples
Income of Chinese contractor of infrastructural projects in Georgia up
We were able to get necessary international support in key issue for us - President Aliyev
LUKOIL says $40/bbl is worst case scenario for oil prices
If we had not created necessary legal framework for resolving conflict, we could have faced problems today - President Aliyev
Iran registers order at COVAX to buy vaccine
Air traffic reduces in Georgia - EUROCONTROL
Second asphalt layer of Ashgabat-Turkmenabat highway being laid
Russian Export Center discloses value of support for exports to Azerbaijan
Azerbaijan's import of limestone, cement down in 10M2020
Aghdam operation was part of our plans - President Aliyev
Kocharyan and Sargsyan, you have knelt before us - President of Azerbaijan
We will restore the city of Aghdam - President of Azerbaijan
No-one should worry, especially leaders of Western countries - President Aliyev
Pashinyan imprisoning captures all opposition, West remains silent - President Aliyev
Many times when I was on line of contact, in trenches, I thought that one day we would return - President of Azerbaijan
I said, Pashinyan, you personally must give us a timetable, you must do it yourself - President Aliyev
We have destroyed enemy in hand-to-hand battle, crossing ravines, forests, mountains, and liberated Shusha - President Aliyev
Precious metal prices in Azerbaijan down
Victory on battlefield made it possible to liberate Aghdam district without a single shot - President of Azerbaijan
Today, many developed countries studying our experience - President of Azerbaijan
Some int'l organizations did not want to reveal identity of occupier in documents adopted - President Aliyev
We do not depend on anyone, do not depend on any country, on any int'l financial institution - President Aliyev
New gas condensate storage facilities to be launched in Iran's Asaluyeh County
Uzbekistan’s largest import of wood products falls on Russia
Uzbekistan eyes importing electricity from Turkmenistan, Kazakhstan
Uzbek-Korean JV to buy spare parts for analyzer via tender
Azerbaijan indicts Armenian ex-defense minister on another article
To those questioning support for Azerbaijan territorial integrity, I suggest they read UNSC resolutions - Former Romanian FM
Turkmenistan considering possibility of growing pistachios
EBRD provides Azerbaijan with loan to improve environment in Ganja
Georgia reports 3,128 new coronavirus cases
Uzbekistan’s gov’t ready to back Ipoteka-Bank
UNICEF contributes to dev't of Turkmenistan's action plan for its national strategy
Israel's Netanyahu says will visit Bahrain soon
Iran reveals data on new enterprises in Hamadan province
All news