The war in Georgia has strengthened European Union policymakers' resolve to see through the construction of the planned Nabucco gas pipeline, which is to channel gas from the Caspian Sea region to Europe around Russia, said Austrian oil and gas company OMV AG's (OMV.VI) chief executive Thursday.
OMV is one of six consortium partners that are planning to build the EUR7.9 billion and 3,300 kilometer long pipeline, which is planned to bring 30 billion cubic meters of natural gas a year to Europe. Before the investment decision can be finally taken, however, an exemption from European regulations on third-party access to energy infrastructure is needed to make the project financially viable.
"The war in Georgia hasn't damaged the prospect of the Nabucco pipeline. On the contrary, we have felt that the determination has increased in Brussels to insure this diversification of the European gas supply," CEO Wolfgang Ruttenstorfer said.
On the recent oil price decline, Ruttenstorfer said that while the oil price may fall further in the time to come, he expects to see it climb to a higher level, at least in the longer term.