Jul 12 - The Shah Deniz Consortium Picks Nabucco West

Source Press Release
Company BP Plc.BotasMOLOMVRWE AGEquinor ASATotal 
Tags Pipelines/ tankers/ distribution
Date July 01, 2012

The Shah Deniz consortium has selected the Nabucco West pipeline concept as one of the two rival options for a final investment decision due next year.

Nabucco West, a 1300-km link backed by the European Union, will now compete with the Trans-Adriatic Pipeline (TAP), for rights to export gas from the Shah Deniz field, which may hold 1.2 trillion cbm of the fuel in Azerbaijan’s part of the Caspian Sea.

“This represents another important milestone in the development of Shah Deniz Stage 2 and the transportation of gas resources from the Caspian to Europe,” said BP regional head, Rashid Javanshir.

Earlier this year, BP and Shah Deniz partners Statoil and Total, eliminated the Interconnector Turkey-Greece-Italy (ITGI), as a potential transport link, and chose Nabucco over the BP-led South East Europe Pipeline project (SEEP).

“Development of the South East Europe Pipeline project led by BP, which had been assembled by Shah Deniz partners in collaboration with Bulgaria, Romania and Hungary, will cease,” the company said.

Nabucco West, which was scaled down from its original plan, has faced repeated delays in the past eight years after struggling to secure fuel sources amid competition.

The original project, 3,900km long and ran from the Eastern border of Turkey to Austria, aimed to build to transport over 30bcm per year of gas into Europe in order to reduce its dependency on Russian imports.

Despite its strong political backing in Brussels, the prospects for Nabucco as originally configured have looked increasingly doubtful in recent months as energy companies endorsed other competing lines and as questions lingered about finding adequate natural gas supply to fill the line.

In April, Hungary’s Prime Minister Viktor Orbán announced that the Hungarian oil and gas company MOL was pulling out of the Nabucco consortium.

Nabucco’s shareholders are Austria’s OMV, Germany’s RWE, Hungary’s MOL, Turkey’s Botas, Bulgaria’s Bulgarian Energy Holding (BEH) and Romania’s Transgaz.

“Nabucco delivers freedom of choice to gas consumers and will contribute considerably to the security of supply in Europe,” said Reinhard Mitschek, Nabucco’s managing director. “We look forward to a successful cooperation with the producers.”

EU Energy Commissioner Gunther Oettinger welcomed the news, saying it represented “a success for Europe and for our security of supply.”

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd