The parties of the Nabucco natural gas pipeline project have started negotiations with two European top lenders to borrow almost EUR1.5 billion for the project's construction, news agency Mediafax reports, citing officials from Romanian state-run gas pipeline operator Transgaz (TGN.RO).
Nabucco's shareholders are considering borrowing EUR1 billion from the European Bank for Reconstruction and Development and another EUR450 million from the European Investment Bank, said Vlad Pavloschi, head of the engineering and research department at Transgaz.
Speaking in an economic seminar, Pavloschi said the Nabucco project will need total loans of EUR5.6 billion for the construction stage. He said Nabucco holders also initiated talks with credit insurers Coface and Hermes.
The Nabucco pipeline, the construction of which is estimated at around EUR8 billion, will deliver approximately 31 billion cubic meters of gas annually from the Caspian Sea to Central Europe via Turkey and Romania, bypassing Russia.
Nabucco's shareholders are Austrian oil group OMV AG (OMV.VI), Romania's Transgaz, Germany's RWE AG (RWE.XE), Hungary's MOL Nyrt. (MOL.BU), Bulgargaz of Bulgaria and Turkey's Botas.
Nabucco is expected to help European countries break free from Russian influence in the natural gas sector. The project is due for completion in 2014 or 2015.
According to Pavloschi, the project will generate competitive prices to import gas in Romania and will lead to investments of over EUR1 billion in the natural gas sector.
Pavloschi said Nabucco could deliver up to 60 billion cubic meters of gas from the Caspian Sea area, as well as from Russia.
Late October, Nabucco said it started detailed financing discussions with the EIB and the EBRD, adding it will begin talks with the International Finance Corporation as well.