Uchenna Izundu
International Editor
LONDON, Feb. 14 -- Austria will not have to grant third-party access (TPA) along its section of the proposed Nabucco natural gas pipeline under an exemption approved by the European Commission. The approval means that Austria will have more freedom to determine capacity allocation and transport tariffs.
The move demonstrates the European Union's support for the 31 billion cu m/year pipeline to carry Central Asian gas across the Caspian Sea to Europe. The project competes with Russia's proposed South Stream proposal (OGJ, May 21, 2007).
The exemption is temporary, and Austria's regulator has promised safeguards to ensure competition with future capacity allocation on that part of the pipeline.
The 3,330-km Nabucco pipeline is seen as a way for the EU to diversify gas supplies for its members.
"The Nabucco company has applied for exemption from the general rule of regulated third-party access in all four member states concerned–Bulgaria, Romania, Hungary, and Austria," the EC said. "The safeguards to which the exemption is subject include a capacity cap preventing a dominant undertaking from booking more than half of the Nabucco exit capacity in Austria and rules to ensure a transparent and nondiscriminatory capacity allocation to third parties."
Jozias van Aartsen, the EU's coordinator of the Nabucco project, planned to visit Ankara to seek Turkey's commitment to the pipeline. Turkey has suggested that the project is not its only option and has sought for Iranian gas to be supplied in the pipeline, despite EU opposition.
Experts estimate that in the next 20 years Europe's consumption of natural gas will increase to almost 800 billion cu m/year from 500 billion cu m/year.
Last month, RWE Gas Midstream became the Nabucco consortium's sixth partner.
Other members are OMV Gas International, MOL, Bulgargaz, Transgaz, and BOTAS, each holding a stake of 16.67% of Nabucco Gas Pipeline International Ltd.
Gaz de France has also expressed an interest in joining the Nabucco consortium, but Turkey has opposed its inclusion after the French National Assembly voted that it would be a crime to deny the massacre of Armenians under the Ottoman Empire.
Contact Uchenna Izundu at [email protected].
