Offshore staff

VIENNA, Austria – The Council of the European Union has approved negotiations with Azerbaijan and Turkmenistan over a legal framework for the proposed Trans-Caspian gas pipeline system.

Reinhard Mitschek, Nabucco managing director, said: “This groundbreaking initiative…matches the aim of the Nabucco project to enable the transportation of a broad diversified gas portfolio.”

The proposed Nabucco pipeline would carry supplies from eastern Turkey to a distribution hub in Baumgarten, Austria, via Bulgaria, Romania, and Hungary. It would be built and operated by the Nabucco Gas Pipeline International.

Some of the gas could come from the BP-operated Shah Deniz field in the Azeri sector of the Caspian Sea.

Mitschek added: “Following a multi-sourcing approach, Nabucco will not be dependent on the construction of a potential Trans-Caspian pipeline. Nevertheless, it is a fact that the big potential for gas exports on both sides of the Caspian Sea is vital for the future of the European and Turkish gas markets.

“A large pipeline system established through Nabucco is tailor-made to contribute to export this large gas supply potential for the decades to come. Nabucco – the European flagship project – offers the most competitive export route for Caspian gas.”

The Nabucco shareholders are OMV (Austria), MOL (Hungary), Transgaz (Romania), Bulgarian Energy Holding (Bulgaria), Botas (Turkey), and RWE (Germany). All have an equal share of 16.67% of Nabucco Gas Pipeline International, and they will be responsible for the negotiation of gas contracts.

09/12/2011