Hungary PM Says Nabucco Gas Pipeline Is 'In Trouble' -Report
April 23 2012 - 5:39PM
Dow Jones News
Hungarian Prime Minister Viktor Orban on Monday expressed strong
doubts regarding the future of the Nabucco natural-gas pipeline,
the Origo.hu news website reported.
"Nabucco is in big trouble," Orban said at a lecture delivered
in Brussels.
He also said that MOL Nyrt (MOL.BU), the Hungarian member of the
implementing Nabucco consortium, is considering exiting the
investment. "I'm no expert of the subject, but what I see is that
even the Hungarian company is leaving the entire venture," Orban
said.
MOL reaffirmed the prime minister's doubts, telling state news
agency MTI that both the project's financing as well as the source
of the natural gas going into the pipeline are uncertain.
"We remain committed to diversifying gas supplies to Central and
Eastern Europe but as an independent company, we have a
responsibility to our shareholders to produce the best business
results," the company said.
In contrast, the Nabucco consortium, which also comprises
Austria's OMV AG (OMV.VI), Romania Trans S.A., Bulgaria's Bulgargaz
EAD, Turkey's Botas and Germany's RWE AG (RWE.XE), gave an
optimistic reaction following Orban's statement.
"The Nabucco gas pipeline project is progressing successfully.
Every transit nation has signed the project support agreement,
hammering out the final legal framework for the investment," the
company said.
Nabucco was originally conceived to represent an alternative
source of natural gas to Europe other than Russia. It has yet to
seal an agreement to secure supplies from Azerbaijan, which is the
only viable option it has on the table.
Newspaper website: www.origo.hu
-Budapest Bureau, Dow Jones Newswires; +36 30 452 3980
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