Brussels, 24/04/2012 (Agence Europe) - Hinting that it could pull out of the proposed construction of the Nabucco gas pipeline, Hungarian oil group MOL has cast doubt over a project which is already treading water.
Following comments by Hungarian Prime Minister Victor Orban on Monday, MOL appeared on Tuesday 24 April to be considering its continued participation in the Nabucco consortium in view of the many uncertainties surrounding the project for a pipeline that was to carry gas from the Caspian region and Central Asia to the EU via Turkey, and without passing through Russia. “There are many uncertainties around the Nabucco project that would be hard to ignore. Both the financing background and the gas source are uncertain”, MOL said in a statement released on Tuesday. “I am not an expert on this issue but, as far as I can see, even the Hungarian company MOL is withdrawing from the entire project”, Orban was quoted as saying on Monday, throwing cold water over a project championed by the European Commission. “Nabucco is in trouble”, he stated.
A spokesperson for the Nabucco consortium had, a little earlier, given assurances that there had been no indication of any possibility of withdrawal by Hungarian Nabucco shareholder FGSZ, a MOL subsidiary. “The Nabucco pas pipeline project is based on a treaty signed and ratified by the transit countries, including Hungary. The Nabucco shareholder in Hungary is FGSZ … and we have not had any indication that this will change”, he said, his comments being picked up and reported in substance by the Commission. The signing in June 2011 of support agreements between the countries through which the Nabucco pipeline was to pass - Austria, Bulgaria, Hungary, Romania and Turkey - and the shareholders in the project - ÖMV of Austria, Bulgargaz of Bulgaria, MOL of Hungary, Transgaz of Romania, Botas of Turkey and RWE of Germany, each holding 16.67% of shares - finalised the legal framework of the project and paved the way for its completion.
On Monday, however, Orban threw the commitment of his country to this pan-European project which is making only slow progress into doubt with his expression of interest in the rival South Stream project, headed by Russian oil company Gazprom. The Russians are becoming increasingly active in their project, he stated, and he spoke of “very simple economic reasons” for Hungary to be included. (EH/transl.rt)