Nabucco agrees pipeline funding deal with Shah Deniz natgas firms

10 January 2013 17:11  [Source: ICIS news]

LONDON (ICIS)--The Nabucco pipeline consortium has reached an “in principle” funding agreement with the energy and gas firms developing Azerbaijan’s Shah Deniz II natural gas project, it said on Thursday.

Under the deal the Shah Deniz partners, which include BP, Statoil, Total and Azerbaijan’s SOCAR, will get an equity option of 50% to participate as shareholders in Nabucco in return for helping fund the planned 1,300 kilometre Nabucco West pipeline from the Bulgaria-Turkey border to the Baumgarten natural gas hub in Austria.

However, the agreement is subject to a decision by Shah Deniz in favour of Nabucco West as an export route to Europe, instead of a rival project, the Trans-Adriatic Pipeline (TAP) project to Italy via Greece. Shah Deniz is expected to take that decision by 30 June, Nabucco said.

Nabucco West is a scaled-down version of the original, much larger Nabucco project from Austria through Turkey and Iran to Azerbaijan. Nabucco West would link up with the Trans-Anatolian Pipeline (TANAP) project to ship Azeri gas across Turkey.

Nabucco is backed by the EU which aims to lessen Europe’s dependence on gas supplies from Russia.

Nabucco’s existing shareholders are Turkey’s Botas, Hungary’s MOL, Austria’s OMV, Germany’s RWE, Romania’s Transgaz, and Bulgarian Energy.


By: Stefan Baumgarten
+1 713 525 2653



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