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RWE continues to review goals in regard to Nabucco Pipeline

14 May 2012 07:40 (UTC +04:00)

"In light of changed conditions brought about by new pipeline projects, we are reviewing whether our commercial and strategic goals regarding Nabucco continue to be preserved," a spokeswoman for RWE said.

The comments follow a report in magazine Der Spiegel that company executives have been preparing politicians for the possibility RWE may exit the project. In January, Chief Executive Juergen Grossmann told Dow Jones Newswires that RWE could scrap its plans to participate and would favor options that limit its financial exposure.

The pipeline is expected to cost at least EUR7.9 billion, but estimates run as high as EUR15 billion.

People familiar with the project have also said it could be carried out on a smaller scale than initially planned. The original plan foresees the pipeline, aimed at carrying Caspian natural gas to Europe, at 3,900 kilometers long with a capacity of 31 billion cubic meters.

Considering other pipeline projects that have sprung up, including the TANAP pipeline to carry gas across Turkey, participants have questioned whether Nabucco is still necessary.

"We continue to be convinced that the original conception for Nabucco remains the best solution for all stakeholders--customers, suppliers and network operators," and there has been no final decision, RWE’s spokeswoman said.