Nabucco Pipeline

The Nabucco pipeline is a planned natural gas pipeline that will transport natural gas from Turkey to Austria, via Bulgaria, Romania, and Hungary. It will run from Erzurum in Turkey to Baumgarten an der March, a major natural gas hub in Austria. This pipeline is a diversion from the current methods of importing natural gas solely from Russia which exposes EC to dependance and insecurity of the Kremlin practices. The project is backed by the European Union and the United States.cite news
url = http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKL2212241120080222
title = U.S. throws weight behind EU's Nabucco pipeline
publisher = Reuters
date = 2008-02-22
accessdate = 2008-02-23] cite news
url = http://www.upi.com/International_Security/Energy/Analysis/2008/02/05/analysis_europes_pipeline_war/2456/
title = Analysis: Europe's pipeline war
author= Stefan Nicola
publisher = United Press International
date = 2008-02-05
accessdate = 2008-02-24]

History

The preparations of this project started in February 2002 when first talks took place between OMV and BOTAŞ. In June 2002, five companies signed a protocol of intention to construct the Nabucco pipeline, followed by the Cooperation Agreement in October 2002. In December 2003, the European Commission awarded a grant in the amount of 50% of the estimated total eligible costs of the feasibility study including market analysis, technical, economic and financial studies. On 28 June 2005, the Joint Venture Agreement was signed by five Nabucco Partners. In February 2008, RWE became a shareholder of the consortium. On 11 June 2008, the first contract to supply gas from Azerbaijan through the Nabucco pipeline to Bulgaria was signed.cite news
url = http://www.iht.com/articles/2008/06/11/business/pipe.php
author=Judy Dempsey
title = EU natural gas pipeline project gets first order
publisher = International Herald Tribune
date = 2008-06-11
accessdate = 2008-06-13]

Route

with total length of convert|3300|km|mi|-1.cite news
url = http://news.bbc.co.uk/2/hi/business/5121394.stm
title = Nabucco gas pipeline is approved
publisher = BBC |date = 2006-06-27
accessdate = 2007-11-10] It will be connected near Erzurum with the Tabriz-Erzurum pipeline, and with the South Caucasus Pipeline, connecting Nabucco Pipeline with the planned Trans-Caspian Gas Pipeline.

Polish gas company PGNiG is studying the possibility of building a link to Poland with the Nabucco gas pipeline.cite news
url = http://www.downstreamtoday.com/News/Articles/200804/PGNiG_Eyes_Link_To_Nabucco_10087.aspx
title = PGNiG Eyes Link To Nabucco
publisher = Downstream Today
date = 2008-04-14
accessdate = 2008-04-19]

Technical features

In early years after completion the deliveries are expected to be between 4.5 and 13 billion cubic meters (bcm) per annum, of which 2 to 8 bcm goes to Baumgarten. Later, approximately half of the capacity is expected to be delivered to Baumgarten and half of the natural gas is to serve the markets en-route. The transmission volume of around 2020 is expected to reach 31 bcm per annum, of which up to 16 bcm goes to Baumgarten. The diameter of the pipeline would be convert|56|in|mm|-1.cite news
url = http://www.nabucco-pipeline.com/cms/upload/Partner_Logos/Nabucco_presentation_web_Feb_2007.pdf
title = Nabucco gas pipeline project. Presentation
publisher = Nabucco gas pipeline project company
format=PDF
date = February 2007
accessdate = 2007-11-10]

Construction

The Nabucco project is included in the EU Trans-European Energy Network programme and a feasibility study for the Nabucco pipeline has been performed under an EU project grant. [ [http://ec.europa.eu/ten/energy/documentation/index_en.htm Energy TEN home page; Nabucco is on the priority axis NG3] ] The FEED services of the pipeline, including the overall management of the local FEED contractors, the review of the technical feasibility study, route confirmation, preparation of the design basis, hydraulic studies, overall SCADA and telecommunications, GIS and preparation of tender packages for the next phase, is managed by UK-based consultancy Penspen.cite news
url = http://www.upstreamonline.com/live/article146737.ece
title = Penspen takes on Nabucco role
publisher = Upstream Online
date = 2008-01-07
accessdate = 2008-04-20]

Construction of pipeline is expected to begin in 2010 and is planned to be finished in 2013.cite news
url = http://www.downstreamtoday.com/News/Articles/200802/Nabucco_Construction_Pushed_Back_to__8858.aspx
title = Nabucco Construction Pushed Back to 2010 - Exec
publisher = Downstream Today
date = 2008-02-22
accessdate = 2008-02-23] It estimated to cost around €7.9 billion.cite news
url = http://www.downstreamtoday.com/News/Articles/200805/Nabucco_Cost_Estimate_Rises__11099.aspx
title = Nabucco Cost Estimate Rises 58%
publisher = Downstream Today
date = 2008-05-29
accessdate = 2008-05-31] The company leading the project is OMV from Austria.

upply sources

The EU currently relies heavily on natural gas from Russia and is eager to diversify its suppliers. Nabucco pipeline may be supplied with gas from several middle east and central asian countries :
* The main source of supply will be the second stage of the Shah Deniz gas field in Azerbaijan, coming on-stream in 2013. There is an agreement for 8 bcm of natural gas per annum with further expansion.
* Turkmenistan would provide for Nabucco 10 bcm of gas annually.cite news
url = http://news.bbc.co.uk/2/hi/europe/7347051.stm
title = EU secures Turkmenistan gas deal
publisher = BBC
date = 2008-04-14
accessdate = 2008-04-19] . Turkmenistan has large natural gas reserves e.g. the Dauletabad gas field. The natural gas could be transported through Iran or across the Caspian Sea via planned Trans-Caspian Gas Pipeline.
* Iran has also proposed to supply gas to Nabucco pipeline, but this is rejected by the EU and the United States.cite news
url = http://en.rian.ru/world/20080411/104863460.html
title = Iran seen as alternative to Turkmenistan in Nabucco gas project
publisher = RIA Novosti
date = 2008-04-11
accessdate = 2008-04-19] cite news
url = http://uk.reuters.com/article/oilRpt/idUKL0583264520080605
title = US still opposes Iran as Nabucco gas supplier
publisher = Reuters
date = 2008-06-05
accessdate = 2008-06-13]
* In the long term Kazakhstan, from the Northerm Caspian reserves through planned Trans-Caspian Gas Pipeline.
* Egypt, which has discovered large gas reserves in the Nile Delta basin during the recent years, could provide 3-5 bcm of natural gas through the Arab Gas Pipeline.
* Also Iraqi gas would be imported via the Arab Gas Pipeline from the Ekas field.cite news
url = http://www.downstreamtoday.com/News/Articles/200804/EU_Iraq_Seek_To_Seal_Nabucco_Deal_Withi_10137.aspx
title = EU, Iraq Seek To Seal Nabucco Deal Within Weeks - Barroso
publisher = Downstream Today
date = 2008-04-16
accessdate = 2008-04-19]
* There is also option, that Nabucco could be fed with Russian natural gas through the Blue Stream pipeline.

Project company

The project is developed by the Nabucco Gas Pipeline International GmbH. The managing director of the company is Reinhardt Mitschek.cite news
url = http://www.cepa.org/digest/interview-with-nabucco-managing-director-reinhardt-mitschek.php
title = Interview with Nabucco Managing Director Reinhardt Mitschek
author = Neil Barnett
publisher = Center for European Policy Analysis
date = 2008-03-14
accessdate = 2008-04-20] The shareholders of the company are:

* OMV (Austria)
* MOL (Hungary)
* Transgaz (Romania)
* Bulgargaz (Bulgaria)
* BOTAŞ (Turkey)
* RWE (Germany)

All current shareholders have 16.67% of the shares.cite news
url = http://www.nabucco-pipeline.com/cms/upload/press_release/Press%20Release%20Nabucoo%20e%20-%20RWE%20joins%20Nabucco%20consortium%20as%20sixth%20partner.pdf
title = RWE joins Nabucco consortium as sixth partner. Press release
publisher = Nabucco Gas Pipeline International GmbH
format=PDF
date = 2008-02-06
accessdate = 2008-02-19]

French company Gaz de France was also interested to get a stakes in the pipeline, but was rejected by Turkey.cite news
url = http://www.upstreamonline.com/live/article148360.ece
title = GdF shrugs off Nabucco snub
publisher = Upstream Online
date = 2008-02-07
accessdate = 2008-02-16] In future the consortium intended to include also the State Oil Company of Azerbaijan Republic (SOCAR), however SOCAR has identified a number of problems with its membership.cite news
url = http://www.downstreamtoday.com/News/Articles/200710/OMV_Socar_Could_Be_the_Seventh_Nabucco__6394.aspx
title = OMV: Socar Could Be the Seventh Nabucco Partner
publisher = Downstream Today
date = 2007-10-05
accessdate = 2007-10-13] cite news
url = http://today.az/news/business/45624.html
title = SOCAR not intending to be shareholder in Nabucco gas pipeline construction
publisher = Today.Az
date = 2008-06-12
accessdate = 2008-06-13] Also Kazakhstan has indicated its readiness to join the project.cite news
url = http://capital.trend.az/?show=news&newsid=1052602&catid=500&subcatid=382&lang=EN
title = Kazakhstan to Join Nabucco Project
publisher = Trend Capital
date = 2007-10-22
accessdate = 2007-11-10] There are speculations that also Gazprom may be interested to participate in the project..cite news
url = http://www.downstreamtoday.com/News/Articles/200802/Gazprom_Ready_to_Look_at_Nabucco_Role__8625.aspx
title = Gazprom Ready to Look at Nabucco Role - Report
publisher = Downstream Today
date = 2008-02-12
accessdate = 2008-04-12]

The European Commission Nabucco coordinator is Jozias van Aartsen.cite news
url = http://www.upstreamonline.com/live/article142723.ece
title = RWE keen on Nabucco supplies
publisher = Upstream Online
date = 2007-10-19
accessdate = 2007-11-10]

Alternative projects

In 2006, Gazprom proposed an alternative project competing Nabucco Pipeline by constructing a second section of the Blue Stream pipeline beneath the Black Sea to Turkey, and extending this up through Bulgaria, Serbia and Croatia to western Hungary.cite news
url = http://www.iht.com/articles/2006/06/22/business/gas.php
author=Judy Dempsey
title = Gazprom's grip on Western Europe tightens with pipelines to Hungary
publisher = International Herald Tribune
date = 2006-07-13
accessdate = 2007-11-10] In 2007, the South Stream project through Bulgaria, Serbia and Hungary to Austria was proposed. It is seen as a rival to the Nabucco pipeline.cite news
publisher= BBC
title = Balkan boost for Russian gas plan
url= http://news.bbc.co.uk/2/hi/europe/7195522.stm
author=Neil MacDonald
date = 2008-02-25
accessdate=2008-02-26] Ukraine proposed White Stream, connecting Georgia to Ukrainian gas transport network [cite news
url= http://www.neurope.eu/articles/82525.php
title= Tymoshenko puts new White Stream pipeline on EU table
publisher= New Europe
author = Kostis Geropoulos
date=2008-02-05
issue=767
accessdate=2008-06-01]

ee also

* Trans-Adriatic Pipeline
* Turkey-Greece pipeline
* Greece-Italy pipeline
* South Caucasus Pipeline
* Trans-Caspian Gas Pipeline

References

External links

* [http://www.nabucco-pipeline.com Homepage of the Nabucco gas pipeline project company]