OMV Executive:Nabucco Project Will Be Decided By Demand In Open Season
January 27 2010 - 10:07AM
Dow Jones News
The decision on whether the European Union-backed Nabucco
Pipeline goes ahead will be made by the market this summer, when
transport contracts are put up for sale, a top-executive of the
pipeline project's Austrian partner, OMV AG (OMV.VI), said
Wednesday.
"The market will decide whether Nabucco is commercially viable,
no-one else. We will only push forward with the project if Nabucco
sells enough 20-year transport contracts in the open season," OMV
management board member and head of the company's gas division,
Werner Auli said, speaking to journalists on the sidelines of the
annual European Gas Conference in Vienna.
Auli said the open season, which is a tendering process during
which gas traders can buy transport capacity in the planned
pipeline, will commence in July this year and end in October.
"We still have a good indication that there is plenty of demand
in the market," Auli said.
The final investment decision should be made toward the
year-end, Auli said.
The 3,300 kilometers long pipeline, planned for completion in
2015, will transport gas from the Caspian region to Europe,
surpassing Russia on the way.
The six partners behind the project are OMV, Bulgaria's
Bulgargaz, Romania's Transgaz, Turkey's Botas, Hungary's MOL Nyrt.
(MOL.BU) and Germany's RWE AG (RWE.XE).
The pipeline will start with a capacity of 8 to 10 billion cubic
meters of gas annually, and by final completion it should reach 31
bcm.
Auli said he considers the more than two-year-old EUR7.9 billion
price estimate for the pipeline is "still realistic".
Company Web site: www.omv.com
-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10;
flemming.hansen@dowjones.com
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