Nabucco pipeline

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 This article or section contains information about a proposed, planned or under construction pipeline.
It may contain information of a speculative nature and the content may change as the construction and/or completion of the pipeline approaches, and more information becomes available.
Not to be confused with Persian Pipeline.
Nabucco pipeline
Map of Nabucco pipeline
Country/Province Turkey, Bulgaria, Romania, Hungary, Austria
Operator Nabucco Gas Pipeline International GmbH
Partners OMV, MOL, Transgaz, Bulgargaz, BOTAŞ, RWE
Length 2,050 miles (3,300 km)
Maximum discharge 31 billion cubic meters per year
General direction east-west
From Erzurum, Turkey
To Baumgarten an der March, Austria
Established 2015 (estimated)

The Nabucco pipeline is a planned natural gas pipeline from Erzurum in Turkey to Baumgarten an der March, a major natural gas hub in Austria, diversifying the current natural gas suppliers and delivery routes for Europe. The project is backed by several European Union states and the United States.[1][2]

Contents

[edit] History

The preparations of this project started in February 2002 when first talks took place between Austrian OMV and Turkish BOTAŞ. In June 2002, five companies (OMV of Austria, MOL of Hungary, Bulgargaz of Bulgaria, Transgaz of Romania and BOTAŞ of Turkey) signed a protocol of intention to construct the Nabucco pipeline, followed by the Cooperation Agreement in October 2002. The name Nabucco comes from the same famous opera of Giuseppe Verdi, that had been listened by the five partners in Vienna State Opera after this meeting.[3] 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. Ministerial statement on the Nabucco pipeline was signed on 26 June 2006 in Vienna.[4] On 12 September 2007, Jozias van Aartsen was nominated by the European Commission as the Nabucco project coordinator.[5] In February 2008, German RWE became a shareholder of the consortium.[6]

On 11 June 2008, the first contract to supply gas from Azerbaijan through the Nabucco pipeline to Bulgaria was signed.[7] The President of Azerbaijan Ilham Aliyev confirmed on 29 January 2009, that Azerbaijan was planning to at least double its gas production in the coming five years to supply the pipeline.[8] On 12 April 2009, the Minister of Energy of Turkey Hilmi Güler confirmed that Turkey is ready to sign a deal, provided that Turkey gets 15% of natural gas to be carried through the Nabucco pipeline.[9]

On 27 January 2009, the Nabucco Summit held in Budapest. At the summit, the heads of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) said, that they are prepared to provide financial backing for the Nabucco gas pipeline.[10] On 28 January 2009, the European Commission proposed €250 million as a part of its Economic Recovery Plan to be contributed through the EIB towards funding the Nabucco pipeline.[11]

On 24-25 April 2009, the Nabucco pipeline was discussed, among other energy issues, at the high-level energy summit in Sofia,[12][13] and on 8 May 2009, at the Southern Corridor Summit in Prague.[14]

The intergovernmental agreement is planned to be signed on 13 July 2009 in Ankara.[15]

[edit] Route

The 3,300 kilometres (2,050 mi) long pipeline will run from Erzurum in Turkey via Bulgaria, Romania, and Hungary to Baumgarten an der March in Austria.[16] Near Erzurum, it will be connected with the Tabriz-Erzurum pipeline and with the South Caucasus Pipeline, connecting Nabucco Pipeline with the planned Trans-Caspian Gas Pipeline. About 2,000 kilometres (1,240 mi) of the pipeline will be laid in Turkey, 400 kilometres (250 mi) in Bulgaria, 460 kilometres (290 mi) in Romania, 390 kilometres (240 mi) in Hungary, and 46 kilometres (29 mi) in Austria.[3]

Polish gas company PGNiG is studying the possibility of building a link from the Nabucco gas pipeline to Poland.[17]

[edit] Technical features

In early years after completion the deliveries are expected to be between 4.5 and 13 billion cubic meters (bcm) per year. Around 2020, the supply volume is expected to reach 31 bcm per annum, of which up to 16 bcm will go to Baumgarten. The diameter of the pipeline would be 56 inches (1,420 mm).[18]

[edit] 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. The front end engineering and design (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.[19]

Construction of the pipeline is expected to begin in 2010 and is planned to be finished in 2014.[20] It estimated to cost around €7.9 billion.[21][22] The company leading the project is OMV.

[edit] Supply sources

The main source of Nabucco's 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.[7][23][8] Turkmenistan would provide for Nabucco 10 bcm of gas annually.[24] The natural gas could be transported through Iran or across the Caspian Sea via planned Trans-Caspian Gas Pipeline. Nabucco's partners OMV and Germany's RWE set up a joint venture named the Caspian Energy Company, to carry out exploration for a gas pipeline across the Caspian Sea.[25] In the long term, Kazakhstan may become a supplier providing natural gas from the Northern Caspian reserves through planned Trans-Caspian Gas Pipeline.[26]

Egypt could provide 3-5 bcm of natural gas through the Arab Gas Pipeline.[23] Also Iraqi gas would be imported via the Arab Gas Pipeline from the Ekas field.[27] MOL has acquired 10% stake in Pearl Petroleum Company Limited. Pearl holds all of the companies’ legal rights in Khor Mor and Chemchemal gas-condensate fields in the Kurdistan Region of Iraq. Through this strategic co-operation MOL strengthens the realization of the Nabucco project.[28]

Iran has also proposed to supply gas to Nabucco pipeline; however, due the political conditions this is rejected by the EU and the United States.[2][29][30] There is also an option, that Nabucco could be fed with Russian natural gas through the Blue Stream pipeline.[23]

[edit] Project company

The project is developed by the Nabucco Gas Pipeline International GmbH. The managing director of the company is Reinhardt Mitschek.[23] The shareholders of the company are:

All shareholders have 16.67% of the shares.[31]

French company Gaz de France was also interested to get a stakes in the pipeline, but was rejected by Turkey.[6][32] The Polish gas company PGNiG plans to join the project.[33] 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 participation.[34][35] Also Kazakhstan has indicated its readiness to join the project.[36]

[edit] 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.[37] In 2007, the South Stream project through Bulgaria, Serbia and Hungary to Austria, or alternatively through Slovenia to Italy, was proposed. It is seen as a rival to the Nabucco pipeline.[38] Ukraine has proposed the White Stream pipeline, connecting Georgia to the Ukrainian gas transport network.[39]

[edit] See also

[edit] References

  1. ^ "U.S. throws weight behind EU's Nabucco pipeline". Reuters. 2008-02-22. http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKL2212241120080222. Retrieved on 2008-02-23. 
  2. ^ a b Stefan Nicola (2008-02-05). "Analysis: Europe's pipeline war". United Press International. http://www.upi.com/International_Security/Energy/Analysis/2008/02/05/analysis_europes_pipeline_war/2456/. Retrieved on 2008-02-24. 
  3. ^ a b "Frequently asked questions: Nabucco Gas Pipeline Project". Nabucco Gas Pipeline International GmbH. http://www.nabucco-pipeline.com/press-public-news/q-a/q-a.html. Retrieved on 2009-05-08. 
  4. ^ (2009-01-27) "Declaration of the Budapest Nabucco Summit"., Budapest Nabucco Summit. Retrieved on 2009-01-31. 
  5. ^ "Hopes revived for stalled Nabucco pipeline". EurActiv. 2007-09-18. http://www.euractiv.com/en/energy/hopes-revived-stalled-nabucco-pipeline/article-166800. Retrieved on 2009-07-05. 
  6. ^ a b "RWE keen on Nabucco supplies". Upstream Online. 2007-10-19. http://www.upstreamonline.com/live/article142723.ece. Retrieved on 2007-11-10. 
  7. ^ a b Judy Dempsey (2008-06-11). "EU natural gas pipeline project gets first order". International Herald Tribune. http://www.iht.com/articles/2008/06/11/business/pipe.php. Retrieved on 2008-06-13. 
  8. ^ a b "DAVOS-Azeri chief urges political, financial will for Nabucco". Reuters. 2009-01-29. http://uk.reuters.com/article/oilRpt/idUKWLA618820090129. Retrieved on 2009-01-31. 
  9. ^ "Turkey Hopes to Sign Nabucco Deal by June". Journal of Turkish Weekly. 2009-04-16. http://www.turkishweekly.net/news/71937/turkey-hopes-to-sign-nabucco-deal-by-june.html. Retrieved on 2009-04-16. 
  10. ^ "Proposed Nabucco Gas Pipeline Gets European Bank Backing". Deutsche Welle. 2009-01-27. http://www.dw-world.de/dw/article/0,,3980038,00.html. Retrieved on 2008-01-31. 
  11. ^ Pete Harrison (2009-01-28). "EU energy funding seeks to kickstart Nabucco link". Reuters. http://uk.reuters.com/article/oilRpt/idUKLS67974520090128?sp=true. Retrieved on 2008-01-31. 
  12. ^ Kurt, Süleyman (2009-04-23). "President Gül invited to Nabucco summit with EU leaders". Today's Zaman: p. 4. http://www.todayszaman.com/tz-web/detaylar.do?load=detay&link=173261. Retrieved on 2009-04-28. 
  13. ^ Carlisle, Tamsin (2009-04-26). "Political hot air evaporates the region's natural gas hopes". The National: p. 26. http://www.thenational.ae/article/20090425/BUSINESS/704259960/1005/MOTORING. Retrieved on 2009-04-29. 
  14. ^ Government of the Czech Republic (2009-05-09). The Declaration - Prague Summit, Southern Corridor. Press release. http://www.eu2009.cz/en/news-and-documents/press-releases/declaration---prague-summit--southern-corridor--may-8--2009-21533/. Retrieved on 2009-07-05. 
  15. ^ "Nabucco partners close in on pact". Upstream Online. 2009-07-03. http://www.upstreamonline.com/live/article182605.ece. Retrieved on 2009-07-05. 
  16. ^ "Nabucco gas pipeline is approved". BBC. 2006-06-27. http://news.bbc.co.uk/2/hi/business/5121394.stm. Retrieved on 2007-11-10. 
  17. ^ "PGNiG Eyes Link To Nabucco". Downstream Today. 2008-04-14. http://www.downstreamtoday.com/News/Articles/200804/PGNiG_Eyes_Link_To_Nabucco_10087.aspx. Retrieved on 2008-04-19. 
  18. ^ "Nabucco gas pipeline project. Presentation" (PDF). Nabucco gas pipeline project company. February 2007. http://www.nabucco-pipeline.com/cms/upload/Partner_Logos/Nabucco_presentation_web_Feb_2007.pdf. Retrieved on 2007-11-10. 
  19. ^ "Penspen takes on Nabucco role". Upstream Online. 2008-01-07. http://www.upstreamonline.com/live/article146737.ece. Retrieved on 2008-04-20. 
  20. ^ "Nabucco Construction Pushed Back to 2010 - Exec". Downstream Today. 2008-02-22. http://www.downstreamtoday.com/News/Articles/200802/Nabucco_Construction_Pushed_Back_to__8858.aspx. Retrieved on 2008-02-23. 
  21. ^ "Nabucco Cost Estimate Rises 58%". Downstream Today. 2008-05-29. http://www.downstreamtoday.com/News/Articles/200805/Nabucco_Cost_Estimate_Rises__11099.aspx. Retrieved on 2008-05-31. 
  22. ^ Christian Gutlederer (2008-05-29). "Nabucco pipeline cost rises to 7.9 bln euros". Reuters. http://uk.reuters.com/article/idUKL2911967120080529?sp=true. Retrieved on 2009-06-27. 
  23. ^ a b c d Neil Barnett (2008-03-14). "Interview with Nabucco Managing Director Reinhardt Mitschek". Center for European Policy Analysis. http://www.cepa.org/digest/interview-with-nabucco-managing-director-reinhardt-mitschek.php. Retrieved on 2008-04-20. 
  24. ^ "EU secures Turkmenistan gas deal". BBC. 2008-04-14. http://news.bbc.co.uk/2/hi/europe/7347051.stm. Retrieved on 2008-04-19. 
  25. ^ "OMV, RWE Launch Caspian Pipeline JV". Downstream Today. 2008-12-22. http://www.downstreamtoday.com/News/Articles/200812/OMV_RWE_Launch_Caspian_Pipeline_JV_14357.aspx. Retrieved on 2008-12-25. 
  26. ^ Shamil Midkhatovich Yenikeyeff (November 2008) (PDF). Kazakhstan's Gas: Export Markets and Export Routes. Oxford Institute for Energy Studies. http://www.oxfordenergy.org/pdfs/NG25.pdf. Retrieved on 2008-11-12. 
  27. ^ "EU, Iraq Seek To Seal Nabucco Deal Within Weeks - Barroso". Downstream Today. 2008-04-16. http://www.downstreamtoday.com/News/Articles/200804/EU_Iraq_Seek_To_Seal_Nabucco_Deal_Withi_10137.aspx. Retrieved on 2008-04-19. 
  28. ^ MOL (2009-05-17). MOL expands its E&P portfolio by investment in the Kurdistan Region of Iraq. Press release. http://www.mol.hu/en/about_mol/news_media_centre/news_releases/expands_its_e_p_portfolio_by_investment_in_the_kurdistan_region_of_iraq/. Retrieved on 2009-05-17. 
  29. ^ "Iran seen as alternative to Turkmenistan in Nabucco gas project". RIA Novosti. 2008-04-11. http://en.rian.ru/world/20080411/104863460.html. Retrieved on 2008-04-19. 
  30. ^ Conor Sweeney (2008-06-05). "US still opposes Iran as Nabucco gas supplier". Reuters. http://uk.reuters.com/article/idUKL0583264520080605?sp=true. Retrieved on 2008-06-13. 
  31. ^ Nabucco Gas Pipeline International GmbH (2008-02-06) (PDF). RWE joins Nabucco consortium as sixth partner. Press release. Press release. http://www.nabucco-pipeline.com/cms/upload/press_release/Press%20Release%20Nabucoo%20e%20-%20RWE%20joins%20Nabucco%20consortium%20as%20sixth%20partner.pdf. Retrieved on 2008-02-19. 
  32. ^ "GdF shrugs off Nabucco snub". Upstream Online. 2008-02-07. http://www.upstreamonline.com/live/article148360.ece. Retrieved on 2008-02-16. 
  33. ^ "Polish PGNiG plans to join Nabucco -Hungary govt". Reuters. 2009-01-27. http://uk.reuters.com/article/rbssEnergyNews/idUKLR22969020090127. Retrieved on 2009-01-31. 
  34. ^ "OMV: Socar Could Be the Seventh Nabucco Partner". Downstream Today. 2007-10-05. http://www.downstreamtoday.com/News/Articles/200710/OMV_Socar_Could_Be_the_Seventh_Nabucco__6394.aspx. Retrieved on 2007-10-13. 
  35. ^ "SOCAR not intending to be shareholder in Nabucco gas pipeline construction". Today.Az. 2008-06-12. http://today.az/news/business/45624.html. Retrieved on 2008-06-13. 
  36. ^ "Kazakhstan to Join Nabucco Project". Trend Capital. 2007-10-22. http://capital.trend.az/?show=news&newsid=1052602&catid=500&subcatid=382&lang=EN. Retrieved on 2007-11-10. 
  37. ^ Judy Dempsey (2006-07-13). "Gazprom's grip on Western Europe tightens with pipelines to Hungary". International Herald Tribune. http://www.iht.com/articles/2006/06/22/business/gas.php. Retrieved on 2007-11-10. 
  38. ^ Neil MacDonald (2008-02-25). "Balkan boost for Russian gas plan". BBC. http://news.bbc.co.uk/2/hi/europe/7195522.stm. Retrieved on 2008-02-26. 
  39. ^ Kostis Geropoulos (2008-02-05). "Tymoshenko puts new White Stream pipeline on EU table". New Europe. http://www.neurope.eu/articles/82525.php. Retrieved on 2008-06-01. 

[edit] External links

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