Nabucco transit countries sign intergovernmental agreement

Austria, Hungary, Romania, Bulgaria, and Turkey have signed an intergovernmental agreement for the Nabucco project.

Offshore staff

ANKARA, Turkey -- Austria, Hungary, Romania, Bulgaria, and Turkey have signed an intergovernmental agreement for the Nabucco project. The agreement ensures equal legal conditions for gas transit throughout the entire Nabucco pipeline system and lays down transport tariff methodology and rules for network access

According to the countries, the agreement will provide a stable legal framework for the next 50 years. The IGA lays down a standard tariff methodology, which will apply for 25 years after the pipeline begins operation, and guarantees equal access for all market participants.

The project will move forward with the finalization of a Project Support Agreement with detailed technical planning and social and environmental impact assessments. In parallel, the Nabucco consortium will start negotiations with banks and pursue the marketing of transport capacities in the Open Season Process.

The pipeline will provide access to new sources of gas for European customers and encourage competition within the international gas markets, the countries say. It will run for over 3,300 km (2,051 mi) from Turkey via Bulgaria, Romania, and Hungary to Vienna, close to the Baumgarten gas hub. Currently, the pipeline shareholders include OMV Gas & Power, MOL, Transgaz, Bulgarian Energy Holding, BOTAS, and RWE. The planned capacity for the final development stage is 31 bcm.

07/13/2009

More in Pipelines