Austrian oil and gas company OMV AG (OMV.VI) is interested in operating an Austrian section of the planned Russian South Stream natural gas pipeline, and says it wouldn't affect the company's participation in the European Union-backed Nabucco pipeline project.
"It would be a win-win situation for OMV and Austria to receive gas from two pipelines. We don't see Nabucco and South Stream as competitors, but as complementary projects," OMV spokesman Thomas Huemer told Dow Jones Newswires Wednesday.
Huemer underlined, however, that no deal is yet in place between OMV and the companies behind the South Stream pipeline project, Russia's gas monopoly OAO Gazprom (OGZPY) and Italy's ENI SpA. (ENI.MI).
Gazprom's deputy Chief Executive Alexander Medvedev was quoted Tuesday by Russian news agency Interfax as saying the company is due to sign a contract soon with the Austrian government for the construction of a section of the South Stream pipeline on Austrian ground. OMV will co-ordinate the project on the Austrian side, Medvedev said.
OMV's Huemer confirmed Wednesday the two companies have had talks on the subject, but that it's still too early to sign a deal.
"Before we could start talking about signing any deals, we would need a feasibility study of the project, and that hasn't been done yet. But of course we are very interested," Huemer said.
The South Stream pipeline, which is to source natural gas from Russia under the Black Sea and into Southern and Central Europe, has been seen by observers as an attempt by Gazprom to counter the European Commission-backed Nabucco pipeline project.
The Nabucco pipeline is planned to transport 31 billion cubic meters of gas annually from the Caspian Sea region to Europe, bypassing Russia and thus reducing Europe's reliance on the gas-rich eastern neighbour.
According to the planned routings, the end-point of both the Nabucco pipeline and the South Stream pipeline will be the Central European Gashub in Baumgarten in Austria, which is jointly owned by OMV and Gazprom.
OMV, however, sees no problem in the two pipelines co-existing, given the expected rise in European gas consumption over the coming years, Huemer said.
The six partners behind the Nabucco pipeline project are Hungary's MOL Nyrt. (MOL.BU), Bulgaria's Bulgargaz, Romania's Transgaz (TGN.RO), Germany's RWE AG (RWEOY), Turkey's BOTAS and OMV, each holding a 15% stake.