Nabucco pipeline project moves into first gear

Newsroom 26/04/2010 | 11:17

Nabucco Gas Pipeline International has announced that it has launched the pre-qualification process as a starting phase for the procurement of long lead items needed for the pipeline’s construction. The value of the entire package is some EUR 3.5 billion and the deadline is the middle of May.

“Long lead items – like pipes and valves – are the cornerstone for pipeline construction, and account for a considerable part of the overall investment costs. The prequalification process will identify the most suitable companies. It is the basis for a successful procurement process and is a substantial step towards starting construction at the end of 2011,” said managing director Reinhard Mitschek. Nabucco will make a significant contribution to natural gas supply security for Turkey, South-Eastern Europe and Central and Western Europe. The gas pipeline will run for over 3,300 km from Turkey via Bulgaria, Romania and Hungary to Vienna, close to the Baumgarten gas hub. Currently, the pipeline shareholders include OMV Gas & Power, MOL, Transgaz, Bulgarian Energy Holding, BOTAS and RWE.

Its competitor, the South Stream project, which is supported by Russia and Italy, seems like it will pass through Romania as well, according to Adriean Videanu, economy minister. “We succeeded in opening a dialog with the Russian Federation. Romania is involved in all major projects which pass through the south part of Europe: South Stream, Nabucco and AGRI,” said the minister. Videanu’s statement came as a surprise as Alexei Miller, Gazprom’s GM, said at the beginning of this month that Romania could no longer take Bulgaria’s place in the project.