FT: European energy security is a delicate balancing act

Until recently the Nabucco pipeline, just like the chorus in Verdi’s opera of the same name, was a symbol of freedom. It was designed as an alternative route for large quantities of natural gas coming into Europe, reducing the continent’s dependency on the Soviet-built pipeline system that runs from East to West.

But the Nabucco dream did not become reality, mainly because it would not transport enough gas to make it viable and especially because Turkmenistan, a big producer of natural gas, was not part of the project. However, this vision of independence could yet live on in another guise – but only if there is the political will to drive it forward.

The main source of gas for Nabucco would have been Azerbaijan’s Shah Deniz field, located under the Caspian Sea just off Baku. It is operated by BP, which owns it in partnership with Socar of Azerbijan, Statoil of Norway, Turkey’s TPAO, the National Iranian Oil Company and Lukoil of Russia. It is possible that Malaysia’s Petronas will also take a stake.
MORE