UPDATE: RWE: No Nabucco Investment Decision In 2010
October 08 2010 - 11:49AM
Dow Jones News
German utility RWE AG (RWE.XE) Friday said a decision on whether
to invest in the European Union-backed Nabucco natural gas pipeline
won't be made until 2011.
"In light of the still pending gas supply contracts the original
schedule can't be met" said an RWE spokesman, confirming a
statement by Michael Ulbrich, an executive at OMV AG (OMV.VI) with
responsibility for pipeline projects.
Ulbrich told Austrian newspaper Der Standard: "This year we
certainly won't make it, it will be in 2011."
RWE and OMV are two of the six commercial partners in the
Nabucco pipeline project, which is slated to carry Caspian region
gas 3,000 kilometers to Western Europe via Turkey, Romania,
Bulgaria, Hungary and Austria from 2014, bypassing Russia on the
way, thereby reducing Europe's dependence on gas from its big
Eastern neighbor.
A major hurdle for the project has been to secure supply to fill
the pipeline's final 31 billion-cubic-meter capacity. The
consortium has been in negotiations with partners in Azerbaijan,
Turkmenistan and Iraq over future supply, but these negotiations
are taking longer than initially anticipated.
Originally, the consortium was set to make a decision this year
on whether to invest in the pipeline, but due to the ongoing
negotiations over supplies, the decision had been delayed to the
end of 2010.
Meanwhile, the projected start of Nabucco gas deliveries has
also been delayed to 2015 from a projected start in 2014.
In addition to OMV and RWE, the consortium behind the estimated
EUR7.9 billion Nabucco pipeline includes Romania's Transgaz,
Bulgaria's Bulgargaz and Hungary's MOL Nyrt. (MOL.BU).
-By Martin Rapp, Dow Jones Newswires; +49 69 29725 500;
djnews.frankfurt@dowjones.com
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