Nabucco natgas pipeline cost soars to €7.9bn

29 May 2008 17:27  [Source: ICIS news]

TORONTO (ICIS news)--The 3,300km Nabucco natural gas pipeline from the Caspian Sea to Austria will cost €7.9bn ($12.3bn), up from its earlier estimated €5bn, due to rising energy and steel costs, the managing director of the consortium planning the project said on Thursday.

 

However, the higher costs would not affect the competitiveness and the economics of the project, said Reinhard Mitschek, managing director of Nabucco Gaspipeline International.

 

Rather, high demand and high gas prices would also lead to higher transportation fees, ensuring the project’s considerable profitability.

 

Nabucco, due to come onstream in 2013, requires two million tonnes of steel, 200,000 pipes and more than 30 compressor units.

 

Its partners include energy firms OMV of Austria, MOL of Hungary, Bulgarga, Romania’s Transgaz, Turkey’s BOTAS and RWE of Germany.

 

In March, partners for the 1,220km offshore Nord Stream gas pipeline project from Russia via the Baltic Sea to Germany increased their project budget to €7.4bn, from previously €5bn.

 

Nord Stream is due to start up in 2011/2012. Its partners include Gazprom, BASF’s Wintershall, Ruhrgas and E.ON.

 

($1 = €0.64)

 

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By: Stefan Baumgarten
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