Nabucco Group Scraps Plan For Iranian Gas Supply
August 23 2010 - 8:10AM
Dow Jones News
European energy companies have shelved a plan to source gas from
Iran to Europe via the European Union-backed Nabucco gas pipeline
given Iran's political situation, the Nabucco consortium said
Monday.
In line with previous statements on Iran, the consortium said it
has decided to go ahead with the construction of two smaller supply
pipes from Georgia and Iraq to the Turkish Nabucco pipeline
starting point, but that the plan for a third from Iran has been
cancelled for the time being.
The consortium behind the estimated EUR7.9 billion Nabucco
pipeline comprises Austria's OMV AG (OMV.VI), Romania's Transgaz,
Bulgaria's Bulgargaz, Hungary's MOL Nyrt. (MOL.BU) and Germany's
RWE AG (RWE.XE).
"Nabucco is not planning an Iranian feeder line any more because
Nabucco is acting in full accordance with international laws and
regulations," consortium spokesman Christian Dolezal said in a
written statement, adding: "We cannot comment on possible future
developments."
Starting in 2014, the planned 3,000-kilometer Nabucco pipeline
is set to carry up to 31 billion cubic meters of natural gas a year
from Turkey to Western Europe through Romania, Hungary, Bulgaria
and Austria. The feeder lines are needed to bring supply from gas
producers to the pipe.
"The shareholders have agreed on a modification of the feeder
line concept," the consortium said.
"Two feeder lines were confirmed and the respective engineering
works were ordered but due to the current political situation,
Nabucco Gas Pipeline International is not planning a third one to
the Turkish-Iranian border so far," it said.
Iran has caused international alarm and condemnation with its
uranium enriching program, which it says is for domestic energy
production purposes, but is feared will lead to the development of
a nuclear bomb. To force Iran to halt the program, the U.S. and EU
have sanctioned international relations with Iran.
-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10;
flemming.hansen@dowjones.com
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