Brussels, 30/08/2012 (Agence Europe) - While the Italo-Russian South Stream gas pipeline project faces its pan-European competitor Nabucco, the battle continues between the rival Nabucco West and Trans-Adriatic projects. Only a possible supply agreement with Turkmenistan would make the construction of these two pipelines possible, which would only see the light of day thanks to gas from Azerbaijan.
The Bulgarian government and Russian gas producer Gazprom discussed on 27 August the technical parameters of the Bulgarian section of the South Stream pipeline - construction of which should begin at the start of 2013. The Bulgarian firm Bulgarian Energy Holding and Gazprom had established a 50: 50 joint-venture plan in November 2010 to construct and operate the Bulgarian section of the pipeline. Managed on a joint basis by the Russian energy specialist Gazprom and the Italian energy specialist ENI, the South Stream gas pipeline, of a total capacity of 63 billion m3 per year, should see the light of day in 2018. Starting in Russia, South Stream will cross the Black Sea to reach Bulgaria, from where it will divide into two branches - one taking the route for Greece and Italy, and the other crossing Romania, Serbia, Hungary, Slovenia and Austria.
Bulgaria is also involved in the rival project to the South Stream gas pipeline, the Nabucco project, which will in large part be fed by gas from Azerbaijan. Led by British energy company BP (25.5%), Statoil of Norway (25.5%), Socar of Azerbaijan (10%), Total of France (10%), the joint Italo-Russian company LukAgip (ENI and Lukoil, 10%), NIOC of Iran (10%) and TPAO of Turkey (9%), the Shah Deniz consortium, which exploits the Azeri gas field of the same name, finally made its choice in July on the Nabucco West gas pipeline project to conduct Azeri gas across Europe, to the detriment of the South East Europe pipeline project (SEEP), managed by BP. Extending across 1,300 km, Nabucco West will cross, starting from the Bulgarian-Turkish border, Bulgaria, Romania and Hungary to Austria. Led by RWE of Germany, OMV of Austria, MOL of Hungary, Transgaz of Romania, Bulgargas of Bulgaria and Botas of Turkey, the Nabucco project initially planned the construction of a 3,900 km pipeline across Turkey. Nabucco West will be linked to the Trans-Anatolian (TANAP) pipeline which will cross Turkey to Georgia and Azerbaijan.
Rival to the South Stream and Nabucco gas pipelines in the pan-European project of the Southern Gas Corridor, the TAP (Trans-Adriatic Pipeline) between Greece and Italy became stronger on its side this summer through receiving, on 9 August, financial commitments from British oil company BP and French oil company Total, and from the Azeri firm Socar. According to the agreement signed with the existing shareholders of TAP, EGL of Switzerland and Statoil of Norway with 42.5% each and E.ON from Germany with 15%, the three new partners have an option enabling them to take, by the time of the final decision on the route next year, up to 50% of the capital of the project. (EH/transl.fl)