Nabucco Pipeline Decision Could Be Postponed To Next Year -OMV
August 04 2010 - 8:55AM
Dow Jones News
OMV AG (OMV.VI) Wednesday said a final decision on whether to
build the 3,000 kilometer long, European Union-backed Nabucco gas
pipeline from the project's partners could be postponed to the
beginning of 2011.
"We still plan to make the investment decision by the end of
this year, but for reasons out of our hands it could also happen in
the first quarter of 2011," OMV Chief Executive Wolfgang
Ruttenstorfer told journalists on a conference call.
"We are dependent on both supply countries and customers,"
Ruttenstorfer said.
If green-lighted, the estimated EUR7.9 billion pipeline will
source up to 31 billion cubic meters of natural gas a year from the
Caspian region to Western Europe, thereby reducing Europe's
dependency on Russian gas. OMV is one of six companies involved in
the project, including Hungarian firm MOL Nyrt. (MOL.BU) and
Germany's RWE AG (RWE.XE).
An "open season," whereby shippers can flag up interests in
buying transport capacity, will later this year determine whether
customer interest is sufficient.
The Nabucco partners are working intensively on securing supply,
most importantly from Azerbaijan and Iraq. Negotiations for gas
contracts from the Shah Deniz II gas field are due to start
shortly, a member of the consortium behind Shah Deniz has said.
-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10;
flemming.hansen@dowjones.com
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