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Turkish Parliament approves Nabucco Project

04 March 2010 22:03 (UTC +04:00)

Baku â€“ APA. Turkish Parliament approved on Thursday a bill on a deal signed by Austria, Bulgaria, Hungary, Romania and Turkey to launch Nabucco pipeline project which will link Europe to the Caspian Sea region.

According to â€œAPA-ECONOMICSâ€ citing Turkish media, the Nabucco pipeline is expected to transport the oil and gas through eastern and northern borders of Turkey to Austria through Turkey, Bulgaria, Romania and Hungary.

In his reply to MPâ€™s questions the Minister of Energy and National Resources Taner Yildiz stated that Turkey secures its interests in Nabucco agreement. Two thousand km of the three thousand long pipeline will pass through the territory of Turkey.

The Nabucco project represents a new gas pipeline connecting the Caspian region, involving the creation of Â«Nabucco Gas Pipeline Ä°nternational GmbHÂ» consortium which includes OMV (Austria), MOL (Hungary), Â«TransgazÂ» (Romania), Â«BulgargasÂ» (Bulgaria), Â«BOTASHÂ» (Turkey) and RWE (Germany) with 16,67 % percent shares for each. 1/3 of the project expenses will be allocated by stock holders, while the remained by financial-credit structures. Estimated investment costs including financing costs for a complete new pipeline system amount to approximately 7.9 billion Euros. The pipeline length is approximately 3,300 km. According to market studies the pipeline has been designed to transport a maximum amount of 31 bcm/y and will be put in service in late 2015.