BP rules out the full-scale Nabucco pipeline proposal

25 May 2012 16:26  [Source: ICIS news]

LONDON (ICIS)--BP is no longer considering the full-scale 4,000km Nabucco pipeline as an option for transporting gas from Azerbaijan's Shah Deniz II field to Europe, the UK-based oil and gas major said on Friday.

Only the scaled-down 1,300-km Nabucco West pipeline, which would run from Bulgaria's border with Turkey to the Central European gas hub in Baumgarten, Austria, would be considered as a feasible link in the Asia-to-Europe gas route, it added.

The original EU-backed Nabucco project had been ruled out because there was no clear prospect of it achieving economic viability by securing gas supplies other than what was available from Shah Deniz II, said BP, which leads the Shah Deniz II consortium.

In mid-May, the Turkish energy and natural resources ministry suggested that Nabucco West would be a success if it linked up with the Trans-Anatolian Pipeline (TANAP) to be built by Azerbaijan and Turkey to transport gas from Shah Deniz II.

The European Commission said it believed the Nabucco consortium was keeping its original proposal on the table for further consideration.

The EU has backed Nabucco as an important part of its plan to reduce member states' reliance on Russian gas.

However, the consortium has not yet been able to announce any deals for gas from Turkmenistan, Iraq or Iran to help fill its planned pipeline.

By: Will Conroy
+44 20 8652 3214

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