Azeri’s ABC – Nabucco close to withdrawing from Azeri gas

Nabucco is virtually withdrawing from Azerbaijan’s Shah Deniz 2 Project in the Caspian Region, according to Azeri news channel ABC.

“Yesterday, EU Commissioner for Energy Gunther Oetinger stated that the cost of Nabucco gas pipeline may reach EUR10-14bn. Initially, it was estimated at EUR7.9bn, but then independent sources began to increase this level up to EUR12-15bn, ie Nabucco has lost its only advantage over Gazprom’s pipeline projects (Nord and South Streams) - a lower price,” reported ABC.

However, when Gerhard Reuss, the head of Nabucco initiator OMV Gas GmbH, part of OMV AG (XETRA: OMV.DE), claimed that the supply of gas via the pipeline will start in 2018, but not in 2017 as previously expected, the news was met by the Azeri news source as an inability to meet the project’s key requirement to ensure offtake of gas from 2017 onwards.