Industry Statement: Proposal for “Nabucco West” Scenario Submitted to Shah Deniz II Consortium
( May 16, 2012, 18:50 GMT | Official Statement) -- MLex Summary: Members of of the Nabucco pipeline project have submitted a smaller version of their pipeline proposal to managers of the Shah Deniz gas field in Azerbaijan. Nabucco members say they believe the new proposal meets all the required legal criteria. The proposed route across Europe is not changed by the new proposal. The pipeline project, a candidate to be chosen this year for the transportation of Shah Deniz gas through the Southern Gas Corridor, has faced growing criticism in recent months for its large scale and costs.
Full statement follows:
The Nabucco Consortium today submitted a proposal to the Shah Deniz II Consortium for the construction of a “Nabucco West” pipeline, which would bring Caspian gas from the Bulgarian-Turkish border to Baumgarten and beyond.
“We are convinced that we have submitted a competitive and comprehensive proposal to the Shah Deniz II Consortium, and that this proposal represents a win-win situation for our shareholders and for suppliers alike”, said Reinhard Mitschek, Managing Director of Nabucco Gas Pipeline International GmbH.
Nabucco West is a modified concept of the Nabucco project. The concept foresees the construction of a 1300 km pipeline that will run from the Bulgarian/Turkish border to the Central European Gas Hub. The pipeline is designed to transport gas initially from Azerbaijan and is fully scalable to meet future gas transport demand from the Caspian Region and Middle-East to the European markets. Nabucco West will benefit from the existing legal framework, namely the Intergovernmental Agreement, Project Support Agreements and third party access exemptions as the Nabucco base case and will follow exactly the same route on European Union territory.
Nabucco Gas Pipeline International GmbH
Nabucco Gas Pipeline International GmbH (NIC) was set up on 24 June 2004 to develop, construct and operate the Nabucco pipeline. Headquartered in Vienna, it is an unbundled midstream-company under EU law. NIC is owned by the Nabucco shareholders and is responsible for the development, construction, operation and capacity trading and allocation for the Nabucco pipeline. NIC will be the only company in direct contact with the shippers and will offer a one-stop-shop solution, operating as an independent economic entity in the market, and acting independently from its parent companies. The pipeline system will be constructed by the National Nabucco Companies (NNCs), which are subsidiaries of NIC in each of the transit countries.
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