Uchenna Izundu
International Editor
LONDON, Aug. 20 -- Potential natural gas shippers on the proposed 31 billion cu m/year Nabucco gas pipeline have booked out capacity on a nonbinding basis, suggesting a strong demand in western Europe for new gas supplies from the Caspian and the Middle East.
Nabucco, which is behind the €7.9 billion project, carried out a survey to assess market interest. "Nabucco capacities are more than 100% overbooked by potential shippers from day one in 2013 on a long term basis," the company said.
The European Union has given support to the pipeline to reduce the EU's reliance on Russian gas supplies.
Construction of the 3,300-km line, which will extend from the Caspian Sea to Austria via Turkey and the Balkan states, will occur in two phases: The first, which will have an initial capacity of 8 billion cu m/year, is expected to start in 2010 and complete in 2013.
The second construction phase will start in 2013 and complete at yearend 2014. It will extend from the Turkish border through Iran to Georgia. It will carry some 31 billion cu m of gas/year to the European Union from the Middle East and Central Asia (OGJ Online, July 14, 2008).
Nabucco Gas Pipeline has already signed various letters of interest with potential shippers and will start the open season process after the legal framework—the exemption process and Intergovernmental agreement—has been completed.
Shareholders in the project, each holding a 15% stake, are Turkey's state-owned Botas, Hungarian oil and gas company MOL Nyrt, Bulgargaz of Bulgaria, Transgaz of Romania, RWE AG of Germany, and OMV AG of Austria.
Contact Uchenna Izundu at [email protected].