Nabucco pipeline decision could boost Germany's gas supplies
Germany's decision to phase out its nuclear power in light of the Fukushima nuclear disaster in Japan has underlined the European country's need for more gas supplies. It has also boosted interest in the planned Nabucco gas pipeline, which would transport gas 4,000 km between Turkey and Austria.
However, a final decision on the Nabucco project will not be made until the end of next year, meaning that construction would not start before 2013 and the project would not be completed until late 2017.
Nabucco Gas Pipeline International GmbH will hold an open season in the first half of 2012 to determine the requirements of European gas importers. Over the long term, Nabucco Managing Director Reinhard Mitschek expects up to 20 billion cubic meters (Bcm) of gas from Azerbaijan to feed the pipeline.
Turkey has already guaranteed around 6 Bcm of gas from Azerbaijan's Shah Deniz II field through intergovernmental contracts, and the Nabucco consortium will secure 10 Bcm. Smaller Azerbaijani fields could supplement this volume with an additional 4 Bcm, Mitschek noted.
As well as gas from Azerbaijan, EU gas importers are looking to transport gas from Turkmenistan and Iraq on the Nabucco pipeline.
Also, Nabucco is reviewing its original cost estimate for the project of €7 billion, after Hungary's development minister stated last week that the pipeline could cost up to €26 billion to build.
Nabucco called the Hungarian minister's estimate "speculation."
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