The chief executive of French state-controlled gas giant Gaz de France (1020848.FR) Tuesday said the proposed Nabucco gas pipeline would be in Europe's interest if it comes to fruition but that gas from Azerbaijan won't be enough to make it profitable.
Cirelli also said GdF will be interested in buying gas that may one day flow to the European Union from the Caspian sea region via the proposed pipeline.
The French government is set to publish a decree privatizing GdF for it then to merge with Franco-Belgian utility Suez (SZEZY) on July 22.
"Azeri gas won't suffice to assure the profitability of the pipeline," Cirelli told a hearing in the French senate convened to examine the merger.
Even if GdF-Suez isn't part of the pipeline consortium, the company supports Nabucco as it would be, "an extra route," transporting gas to Europe, and "naturally in the interests of Europe," Cirelli said.
"We will be a candidate to buy the capacities that pass through this pipeline," Cirelli said.
The Nabucco pipeline would transport gas from the Eastern side of the Caspian Sea and Middle East regions, potentially Iran, to Europe, bypassing Russia and thus reducing Europe's reliance on its gas-rich eastern neighbor.
But the Nabucco project could use more "visibility" on whether gas will be able to come to the pipeline across the Caspian sea or from Iran, Cirelli said.
The consortium that aims to construct the project comprises Turkish state-owned energy company Botas, Hungarian oil and gas company MOL Nyrt. (MOL.BU), Bulgaria's Bulgargaz, Romania's Transgaz (TGN.RO), Germany's RWE AG (RWEOY) and Austrian OMV AG (OMV.VI), each holding a 15% stake.