Nabucco prays for a miracle

25 October 2011

The project has evolved into a clumsy, expensive solution to a problem the market is already solving

PEOPLE don’t believe in the Nabucco gas pipeline, and they haven’t for years. The EU-backed mega-project to diversify European gas supply and reduce reliance on Russia makes perfect political sense, but after nearly a decade in development it remains a pipe dream.

First touted in 2002, momentum for Nabucco peaked after a gas war between Russian and transit-state Ukraine in 2009 that cut gas supplies for the second time in three years. Soon after, Turkey and four EU member states – Bulgaria, Romania, Hungary and Austria – signed an intergovernmental agreement to bring gas from central Asia to Europe, and the US warmly congratulated them on pipeline plans that could unshackle Europe from Russia’s energy influence.

Persistent problem But development of the 31 billion cubic metres a year (cm/y) Nabucco pipeline has been slow and the persistent problem of securing enough feedstock remains. Add to this mix shale-gas extraction...



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