Bloomberg News

Turkey Backs Nabucco West as RWE Reviews Support for Gas Link

May 15, 2012

Boru Hatlari Ile Petrol Tasima AS, the Turkish state pipeline company known as Botas, reiterated its support for the Nabucco West project after RWE AG (RWE) said it’s reviewing its commitment to the whole Nabucco venture.

“Botas and the Turkish Ministry of Natural Resources fully support it,” Levent Ozgul, Botas’s director of strategy and business development, said today by e-mail.

RWE said yesterday it’s examining whether its “commercial requirements” are still met by Nabucco, a planned pipeline designed to carry natural gas from the Caspian Sea region to central Europe. The project may be scaled back to the Nabucco West link, which would take gas from Azerbaijan’s Shah Deniz field to the proposed Trans-Anatolia Pipeline, known as Tanap.

Nabucco West is competing with other pipeline projects for gas from the Shah Deniz development partners, which are accepting formal bids for shipment rights tomorrow.

“Turkey assumes that Nabucco West will be the natural continuation of Tanap,” which is led by Azerbaijan and Turkey, Ozgul said.

As well as Botas and RWE, Nabucco’s project members include Vienna-based OMV AG (OMV), Hungary’s Mol Nyrt (MOL), Bulgargaz EAD and Romania’s Transgaz SA. Mol said last month it isn’t prepared to finance Nabucco and may sell its stake.

The pipeline venture, designed to lower the European Union’s dependence on Russian gas, has faced repeated delays in the past eight years after struggling to secure fuel sources amid competition from other export links.

To contact the reporter on this story: Zulfugar Agayev in Baku at zagayev@bloomberg.net

To contact the editor responsible for this story: Hellmuth Tromm at htromm@bloomberg.net


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