Industry and Energy

Home page

Industry and Energy

Project Support Agreements signed in Kayseri between Nabucco consortium and transit countries

08 June 2011 14:37 (UTC +04:00)

PSAs are bilateral legal agreements between Nabucco, and the governments of transit countries. The main elements of the PSA are the affirmation of an advantageous regulatory transit regime under EU and Turkish energy law; the protection of the Nabucco Pipeline from potential discriminatory changes in the law; and support for legislative and administrative actions for the further implementation of the project. The PSAs also mark a commitment by each government to support the project.

â€œThe signing of PSAs is an issue attaching great importance for our project and strengthens our partnership with the governments of transit countries. At the same time, the first meeting of the Nabucco Political Committee is also held today and this committee will provide effective coordination between the transit countries. We are pleased with a solid basis of the project and welcome the support of Nabucco both from political and financial circles. Nabucco represents the future of global energy cooperation, the union of businessmen, consumers, countries and cultures, and will ensure diversification and security of supply for many decadesâ€, said Director General of Nabucco Pipeline International GmbH Reinhard Mitschek.

In turn, the chairman of the steering committee of Nabucco, the head of the Austrian company OMV Werner Auli said that demand for gas in Europe was expected to increase significantly in the coming decade, and the Nabucco pipeline would be the preferred method of transportation for gas suppliers in the Caspian region: â€œNegotiations with suppliers are going well and interest in Nabucco pipeline is growingâ€.

Note that for the construction of the pipeline Nabucco, which will carry Caspian gas to Central Europe via Turkey and the Balkans, a consortium Nabucco Gas Pipeline Ä°nternational GmbH. Currently, the consortium Nabucco Gas Pipeline International Ltd. includes 6 companies - OMV (Austria), MOL (Hungary), Transgaz (Romania), Bulgargaz (Bulgaria), BOTAS (Turkey), RWE Gas Midstream (Germany). The share of each companyâ€™s participation in Nabucco Gas Pipeline International Ltd. is 16.67%.

Shareholders will fund 1 / 3 of the cost, the rest - the financial and credit institutions. The annual throughput capacity of Nabucco, a length of more than 3300 km, will be 31 billion cubic meters.