Trans-Caspian gas pipeline vital to Nabucco
Contentious trans-Caspian gas pipeline will be built; Shah Deniz gas will be transported through Nabucco; managing director Reinhard Mitschek talks to Kwok W Wan
THE Nabucco pipeline depends on gas supplies from Turkmenistan through a Trans-Caspian pipeline, the project’s managing director told Petroleum Economist. The 31 billion cubic metre a year (cm/y) EU-backed Nabucco project – which aims to bring central Asian gas to Austria’s Baumgarten hub and help reduce EU reliance on Russian imports – is bidding for the first 10 billion cm/y from Azerbaijan’s Shah Deniz phase two project.
Front-end engineering and design (Feed) work for Nabucco is under way. Mitschek said the work is 70-75% complete and should be finished by first-quarter 2012, with the investment costs to be evaluated by then. “It’s too early to change [the cost] figures. We’ll see after open season (a process to express interest and book pipeline capacity) and Feed completion what the investment figure will be, but I’m confident we are in an appropriate range for the time being.”