Apr 11 - Gazprom-Led South Stream May Replace Austria Gas Link - EEGA
(Bloomberg) The OAO Gazprom-led South Stream natural-gas pipeline may replace an existing link through Austria to supply Russian fuel to Italy, according to East European Gas Analysis.Italy’s gas import capacity may exceed demand by at least 69.5 billion cubic meters in 2025 should South Stream and at least two new liquefied natural gas terminals be built, Mikhail Korchemkin, head of Malvern, Pennsylvania-based EEGA, said in a note published today on the consultant’s website. Trans Austria Gasleitung, known as TAG, one of the four pipelines supplying Italy, was operating at 65 percent of its 37.4 billion cubic meters a year capacity from March 1 to March 24, he said. “The northwestern section of the South Stream pipeline ends at the Austrian-Italian border near Arnoldstein,” Korchemkin said. “TAG delivers gas to the same place. Even in case of the South Stream pipeline and the two LNG terminals under construction being the only completed projects, there is no need for supplies via the TAG pipeline.” South Stream plans to start building the link across the Black Sea to south and central Europe in 2013 and ship the first gas in late 2015. The pipeline, whose route is still being drafted, may carry as much as 63 billion cubic meters of gas a year to the European Union. South Stream, Nabucco Gazprom and Italy’s Eni SpA each hold 50 percent in the pipeline venture. BASF SE’s Wintershall unit last month agreed to acquire a 15 percent stake in the project, while Electricite de France SA may join South Stream this year. The Russian gas export monopoly plans to retain its 50 percent interest, it said last month. TAG is owned by OMV AG’s gas unit. The exclusive marketing rights for the transportation service through TAG lie with a venture between Eni and OMV, in which Eni holds 89 percent. OMV, central Europe’s biggest oil company, in April last year said it was “looking to work together” on constructing the Austrian section of South Stream. A feasibility study on the segment was completed last month and is being discussed between OMV and Gazprom. OMV also is one of six partners in the Nabucco gas pipeline project, which aims to transport gas from the Caspian region to Europe, bypassing Russia. |