Delays from key suppliers and Turkey’s enthusiasm for other projects have left Europe’s flagship gas transit pipeline on the brink of collapse, reports AFP.
The Nabucco pipeline aims to transport up to 30 billion cubic feet of gas a day from a range of gas fields in the Caspian and Middle East through 2,400 miles of pipeline to Europe via Turkey. It was devised in 2002 and a preliminary agreement for its construction was signed in 2009 between Turkey, Romania, Bulgaria, Hungary and Austria.
Feedstock was planned to come from Iraq, Azerbaijan, Turkmenistan and Egypt and reduce Europe’s reliance on Russia for gas. The project’s partners include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and the German RWE.
A shortage of feedstock commitments and rival projects have threatened the Nabucco pipeline from the outset, a problem compounded by recent actions by Turkey. Ankara has permitted Eni and Gazprom to run Nabucco’s rival South Stream pipeline in the country’s waters, and has struck a deal between with Baku for the construction of the Trans-Anatolia Pipeline (TANAP).
Together, the two rival projects significantly impede Nabucco’s chances of making it beyond the drawing board. To compound the misery for proponents of Nabucco, Turkey is now officially prioritising TANAP, according to a statement released by the Turkish Energy ministry last week.
TANAP, unlike Nabucco, will use existing Turkish gas transmission pipelines, to carry up to 16 billion cubic meters of gas from Azerbaijan’s Shah Deniz field to Turkey’s borders with Greece and Bulgaria.
In addition, the Blue Stream pipeline across the Black Sea built by Gazprom currently has significant spare capacity, weakening the case for approving a new pipeline project which is due to cost $19.59 billion.
Without significant feedstock commitments or a change of priorities from Turkey, the Nabucco pipeline’s prospects look bleak.
