ITGI Sees Opportunity in Nabucco Cost, Timing Delays

EU's Energy Commissioner has said that the Nabucco gas pipeline project may now could cost up to 14 billion euros.

Speaking in Bonn, Guenther Oettinger said "... Nabucco will cost 10 to 14 billion euros."

The new figure is a significant is significant jump from the last estimated cost of 7.9 billion euros.

Reuters has reported that the revised number presented by Oettinger today may again increase significantly. The wire service cites sources in Turkey who say the costs for the project could almost double from original estimates.

The Commissioner's comments are the latest public setback for the EU backed pipeline project.

Earlier this week Gerhard Roiss, chief executive of Nabucco shareholder OMV AG, said that first gas deliveries would now be delayed to 2018.

Press headlines such as 'Nabucco withdraws from struggle for great Azeri gas',  have allowed the competing Interconnector Turkey-Greece-Italy (ITGI) project to take the offensive, reinforcing its stated position as being the logical, favoured supplier of Azeri gas from the Shah Deniz project to Europe.

Harry Sachinis, chairman and CEO of Greek gas concern DEPA, an ITGI partner, said: "This reinforces the rationale for a scalable pipeline, with an initial 10bcm capacity, to supply all the Shah Deniz II gas to Europe as soon as it becomes available."

"We’ve always said that ITGI should be considered as the first step in a phased approach to opening up the Southern Gas Corridor.

"There is no reason Nabucco could not be the second once further gas volumes become available. The ITGI system can begin supplying Azeri gas to Southern Europe through the Greece-Bulgaria interconnector as early as 2013, sooner than any other pipeline proposal."

Source: includes APA