US is confidence in Nabucco feasibility faltering

US is confidence in Nabucco feasibility faltering

Full implementation of the Nabucco gas pipeline project becomes less likely every year, a US State Department official was quoted by Russian RIA Novosti news agency as saying. ”

It has become clear that it is more difficult to implement the project from the financial and temporal points of view,” Richard Morningstar, US Special Envoy for Eurasian Energy, told a conference, “Natural gas and Ukraine’s energy future”.

The Nabucco project seeks to deliver Caspian and Central Asian gas to European markets bypassing Russia. The pipeline is part of planned links known as the Southern Corridor, intended to reduce EU dependence on Russian gas. The participants of the Nabucco project are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE companies. Each of participants has equal share of 16.67 percent.

Morningstar said the Nabucco project has been discussed for several years. Moreover, the construction of such a massive gas pipeline will require a long time. Therefore, problems may arise with filling the conduit.

Morningstar said it would be better to focus on gas supplies via the southern route to the most vulnerable countries in

terms of gas, in particular the Balkans. He said this idea could be realized in particular through the construction of an inter-connector with Turkey.

“Of course, the Southern Gas Corridor will work, but its capacity will be increased gradually,” he said. “There will not be large volumes”.

 

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