Company formed for Caspian-Europe pipeline

15 July 2005
Five companies signed in late June a joint venture agreement to carry out the Nabucco Iran-Europe gas pipeline. The five companies - Turkey's Botas, Bulgargaz, Rumania's Tranzgaz, Hungary's MOLand Austria's OMV- have completed a feasibility study on the pipeline, which is supported by the EU (MEED 7:5:04).

The new joint venture company, Nabucco Gas Pipeline International, will build a pipeline stretching more than 3,000 kilometres that will feed Caspian gas into the European network. It will have capacity of up to 31,000 million cubic metres a year of gas and will require investment of about Eur 4,600 million ($5,500 million). Nabucco aims to launch the project in 2008 and complete it by 2010.

Nabucco now needs to work out financing for the project, establish project companies in each of the participating countries and plan the project stages. Iran is already working on a gas pipeline to the UAE and is in negotiations with Kuwait, Pakistan and India for other pipeline projects. National Iranian Gas Export Companywill negotiate all the projects on the Iranian side.

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