OMV:Final Nabucco Pipeline Proj Decision Early '08-Report-AFP

A final decision on whether the European Union's flagship Nabucco gas pipeline can go ahead has been put back until early next year, the Austrian partner in the consortium, OMV AG, according to the WirtschaftsBlatt daily.
Dow Jones Newswires
Παρ, 30 Νοεμβρίου 2007 - 02:54
A final decision on whether the European Union's flagship Nabucco gas pipeline can go ahead has been put back until early next year, the Austrian partner in the consortium, OMV AG, according to the WirtschaftsBlatt daily.

"The final decision will be made in the first quarter of 2008," instead of the end of this year, OMV gas chief Werner Auli is reported as saying by the paper.

The 3,300-kilometer (2,050-mile) Nabucco pipeline, scheduled for completion in 2012, is to transport gas to the E.U. from the Middle East and Asia so as to reduce the 27-nation bloc's reliance on Russian supplies.

Supply interruptions after recent standoffs between Russia, the world's biggest exporter of gas, and key transit countries Ukraine and Belarus have stoked fears in Europe of an overdependence on Russian energy sources.

But critics argue that Nabucco would need gas from Iran, holder of the world's second-largest gas reserves, for the project to be profitable.

Consortium partners, OMV of Austria, MOL Nyrt. (MOL.BU) of Hungary, Transgaz SA of Romania, Bulgargaz of Bulgaria and Botas of Turkey, don't agree.

"We know the chicken-before-the-egg problem," Auli told the newspaper. "But we're practically fully booked already now," he countered.

Earlier this week, a spokesman for E.U. Energy Commissioner Andris Piebalgs argued that the issue of Iranian gas was "irrelevant" for the realization of the Nabucco pipeline.

"Iranian gas is neither necessary nor desired for Nabucco's realization at this stage," said Piebalgs' spokesman Ferran Tarradellas Espuny.

The European Commission is convinced that the Caspian Sea region can provide large amounts of gas for the Nabucco pipeline even without gas deliveries from Russia and Iran, the spokesman said.

Another issue that has to be resolved is the search by Nabucco's current five partners for a sixth partner.

Auli refused to say whether RWE AG (RWE.XE) of Germany or French giant Gaz de France might sign up to the project.

Διαβάστε ακόμα