A 2,000-mile pipeline envisioned as a way to lessen Western Europe’s dependence on Russian natural gas is being threatened by escalating costs, missed deadlines and uncertain supply.
The project, known as Nabucco, is behind schedule, with a start date expected to be pushed back from next year to 2010. Recent reports indicate that the cost of the pipeline - which would ship natural gas through Turkey, Bulgaria, Romania and Hungary to a hub in Austria - has swelled from about $7 billion to $12 billion.
Naming
Nabucco (short for Nabucodonosor, English Nebuchadnezzar) is an opera in four acts by Giuseppe Verdi to an Italian libretto by Temistocle Solera, based on the biblical story and the play by Anicet-Bourgeois and Francis Cornu.
Apparently, the Europeans like history: naming a pipeline after Nebuchadnezzar, modeling their EU headquarters in Strasbourg, France after the Tower of Babel and placing a statue of Europa the queen riding a bull in front of their EU headquarters in Brussels, Belgium.
General
The Nabucco pipeline is a planned natural gas pipeline that will transport natural gas from Turkey to Austria, via Bulgaria, Romania, and Hungary. It will run from Erzurum in Turkey to Baumgarten an der March, a major natural gas hub in Austria. This pipeline is a diversion from the current methods of importing natural gas solely from Russia which exposes EC to dependance and insecurity of the Kremlin practices. The project is backed by the European Union and the United States.
History
The preparations of this project started in February 2002 when first talks took place between OMV and BOTA?. In June 2002, five companies signed a protocol of intention to construct the Nabucco pipeline, followed by the Cooperation Agreement in October 2002. In December 2003, the European Commission awarded a grant in the amount of 50% of the estimated total eligible costs of the feasibility study including market analysis, technical, economic and financial studies. On 28 June 2005, the Joint Venture Agreement was signed by five Nabucco Partners. In February 2008, RWE became a shareholder of the consortium. On 11 June 2008, the first contract to supply gas from Azerbaijan through the Nabucco pipeline to Bulgaria was signed.
Route
The pipeline will run from Erzurum in Turkey to Baumgarten an der March in Austria with total length of 3,300 kilometres (2,050 mi). It will be connected near Erzurum with the Tabriz-Erzurum pipeline, and with the South Caucasus Pipeline, connecting Nabucco Pipeline with the planned Trans-Caspian Gas Pipeline.
Polish gas company PGNiG is studying the possibility of building a link to Poland with the Nabucco gas pipeline.
Technical features
In early years after completion the deliveries are expected to be between 4.5 and 13 billion cubic meters (bcm) per annum, of which 2 to 8 bcm goes to Baumgarten. Later, approximately half of the capacity is expected to be delivered to Baumgarten and half of the natural gas is to serve the markets en-route. The transmission volume of around 2020 is expected to reach 31 bcm per annum, of which up to 16 bcm goes to Baumgarten. The diameter of the pipeline would be 56 inches (1,420 mm).
Construction
The Nabucco project is included in the EU Trans-European Energy Network programme and a feasibility study for the Nabucco pipeline has been performed under an EU project grant. The FEED services of the pipeline, including the overall management of the local FEED contractors, the review of the technical feasibility study, route confirmation, preparation of the design basis, hydraulic studies, overall SCADA and telecommunications, GIS and preparation of tender packages for the next phase, is managed by UK-based consultancy Penspen.
Construction of pipeline is expected to begin in 2010 and is planned to be finished in 2013. It estimated to cost around €7.9 billion.[10] The company leading the project is OMV from Austria.
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