By OGJ editors
HOUSTON, Aug. 16 -- Vienna-based Nabucco Co. Pipeline Study GmbH has signed a letter engaging ABN Amro Bank NV, Amsterdam, as financial advisor for the proposed 4.4 billion euro Nabucco pipeline whose sponsors seek to build a 3,400 km natural gas pipeline to deliver as much as 25-30 billion cu m/year of gas to Europe from Iran and the Middle East and from Turkey and the Caspian region (OGJ Online, Jan. 28, 2004).
The study company was founded in March as a unit of Austria's OMV Aktiengesellschaft to research the feasibility of building the pipeline. It represents the interests of a sponsoring consortium formed in October, 2002 that consists of five international firms: Turkey's Boru Hatlari ile Petrol Taintergralima Atrademark (Botas), Bulgargaz EAD of Bulgaria, Romania's National Co. for Natural Gas Transmission (SNTGN) Transgaz SA, MOL Natural Gas Transmission Co. Ltd. of Hungary, and OMV Gas GmbH, a 100% subsidiary of OMV Aktiengesellschaft of Austria.
During the feasibility study phase ABN Amro Bank will support Nabucco by developing a project financing structure, a model for construction, and appropriate incentives for investors. It also will coordinate marketing activities and enter into negotiations with potential shippers for transportation contracts.
If feasible, construction on the pipeline could begin in 2008 and complete in 2012.