Nabucco Pipeline Not Dead, Europe Needs More Gas
It appears that the long-term annals connected with very ambitious Nabukko task, advanced to its ordered end. Within two years the intrigue in alternative a path for trade goods of the Azerbaijani gas from development of field the "Shah-Deniz-2" to Europe stayed.
And here, on June 28, in the put term, consortium "Shah -Deniz-2" announced the final decision: gas from Azerbaijan will proceed to Europe not through the pipeline "Nabucco", and through the TAP Trans-Adriatic Pipeline.
The pipeline "Nabucco" is not without reason the task was advised, or rather, even the brainchild of the European amalgamation. Furthermore, it was advised in Brussels and Moscow as a European answer to the "South Stream". The reason is clear - to dwindle the dependence of the vintage World on Russian gas. And all this was done inside the framework of the well-known program to double-check energy security of Europe.
The pipeline behalf of monarch Nebuchadnezzar II
The construction task of the transcontinental gas pipeline received its the attractive title from the identical title opera by Giuseppe Verdi and means a name of the well-known ancient tsar of Mesopotamia Navukhodonosora II.
The source, destination, the recipient. The main gas pipeline "Nabucco" was initially proposed to transport natural gas from centered Asia to Europe - particularly in Austria and Germany. Its main feature was the path which certainly had to overtake Russia. As a major supplier for it initially advised Azerbaijan (the gas from Shah Deniz), Iran (South Pars) and Turkmenistan (Dowletabat, South Iolotan-Osman). Azerbaijani gas was initially to supply a third of the fullness of the pipeline, but then its share has advanced considerably. Now, after a negative for "Nabucco" answers of consortium "Shah-Deniz-2" task itself actually lost all significance. Besides, the geographic string of links pipeline - Turkmenistan - Iran - Azerbaijan - Turkey - Bulgaria - Romania - Hungary - Austria - Czech Republic - without a key link (Azerbaijan) nearly misplaces all significance.
The total task cost was initially approximated at 7.9 billion euros, and then (in 2011) due to the increase in price of metal ore, sounded number - 11 billion euros. The pipeline was to be 3300 km. It was designed that the "Nabucco" will provide Europe with 26-32 billion cubic meters of gas per year. For the implementation of the task "Nabucco" was conceived by a consortium whose shareholders are OMV Gas GmbH (Austria), BOTAÅ? (Turkey), Bulgargaz (Bulgaria), SNTGN Transgaz S.A.(Romania). Date of start of the task were delayed, affected fierce backroom struggle and a very high rate.
It's more budgetary competitor
Now, after the sensational conclusion of consortium "The Shah- Denise- 2", about the TAR Transadriatic gas pipeline compose literally all. Previous major competitor "Nabukko" didn't perceive so gravely. So, than TAR could warrant a victory?
So, TransAdriaticPipeline (TAP) proposed to "The Shah- Denise- 2" gas transport from the Caspian district through Greece, Albania and through the Adriatic ocean to the south to Italy and further to Western Europe - only 520 kilometers. Shareholders of TAP are the Swiss AXPO (42,5%), the Norwegian Statoil (42,5%) and the German E.ON Ruhrgas (15%). possibly here lies the reason for the achievement of the TAP. The representative composition of shareholders might appear for founders "Shah-Deniz-2" (BP - 25,5%, Statoil - 25,5%, Total - 10%, Lukoil - 10% and the Azerbaijani state oil company SOCAR - 10%) more authoritative than in "Nabucco". Especially pay vigilance to the famous presence on both lists Norwegian Statoil. In supplement, the major shareholders "Nabucco" are not developer's fields in the Caspian Ocean, in compare to the shareholders of TAP.
The estimated capacity of the pipeline - 10 billion cubic meters a year, with the likelihood of expanding the capability to 20 billion as you can glimpse, the bandwidth is smaller than the "Nabucco". Complete construction of the pipe designed by 2019, that is, later "Nabucco."
The cost of the TAP task is approximated at 2.2 billion dollars, contrasted to 11 or even 7.9 billion euros in "Nabucco" looks like a budget type. Therefore, the length and, most significantly, reduced cost were much preferable to the possible transport capacity and timing of building.
Another very important, if not the principal cause for the alternative TAP was the genuine denial from Ashgabat and Tehran to approve its intention to consign in the necessary scale gas to Europe. At the time of the decision only Baku verified the readiness to fulfill their previous commitments.
The answer of the parties on the end the protracted epic
In Nabucco Gas Pipeline International reacted to the negative conclusion of consortium frostily, but it is quite civilized. Although, the business extends to assert that "Nabucco" boasts an exclusive opportunity to rendezvous the growing needs of Europe's natural gas.
Winning TAR don't hide delight. His managing director Kyetil Tungland announced: "A choice of the task of the Transadriatic gas pipeline for transport of the Azerbaijani gas to Europe - the first and important step in opening "Youzhny of a gas corridor". Thus, at first look, for Moscow with its energy ambitions, nothing has altered, somebody wants to contend with her.
Gazprom, although, celebrating a win. On the event of answers of the consortium "Shah Deniz 2" head of the Russian gas monopoly, Miller could not hide his satisfaction, undiplomatic remarking: "We have witnessed the funeral of "Nabucco".
Italy, Albania, Greece fully supported the conclusion of the consortium. Greek Finance Minister Yannis Sturnaras said that this task will stimulate the financial development of his debt-laden homeland. "I am assured that this project will assist to the creation of occupations in our country," - said the minister, supplementing that Greece will become a local "energy centers."
The worth of the sensational solutions...
It turns out, not so sensational. It is likely for this cause to it so rejoice in "Gazprom". The matter is that gas volumes that will be adept to skip the future TAP pipeline are so insignificant what to speak about any geopolitical success of competitors for the Russian monopolist still very much early. Annual capacity of the TAP in 10 billion cubic meters of gas makes about 2% from the total amount of the gas consumed in Europe. It is improbable that it will have a grave impact on the formation of charges for natural gas in the region.
It should be documented that futures for natural gas have absolutely vital promise for development,.despite on shale revolution. The issue is that crude oil is characterized by calorific proficiency of 5,4-5,8 million BTU on barrel that at the present charges of azure gold 22,8-24,5 US dollars for barrel are matching. That is, by uneven calculations, when falling quotations of WTI to 75 US dollars, it becomes unprofitable to use natural gas if the charges of it augment to 12 US dollars for one million BTU that is almost three times more the present charges, documented in analytical department of the Tusar FX company (included in the highest leagues of a rating of brokers Masterforex-V Academy ).
And here, on June 28, in the put term, consortium "Shah -Deniz-2" announced the final decision: gas from Azerbaijan will proceed to Europe not through the pipeline "Nabucco", and through the TAP Trans-Adriatic Pipeline.
The pipeline "Nabucco" is not without reason the task was advised, or rather, even the brainchild of the European amalgamation. Furthermore, it was advised in Brussels and Moscow as a European answer to the "South Stream". The reason is clear - to dwindle the dependence of the vintage World on Russian gas. And all this was done inside the framework of the well-known program to double-check energy security of Europe.
The pipeline behalf of monarch Nebuchadnezzar II
The construction task of the transcontinental gas pipeline received its the attractive title from the identical title opera by Giuseppe Verdi and means a name of the well-known ancient tsar of Mesopotamia Navukhodonosora II.
The source, destination, the recipient. The main gas pipeline "Nabucco" was initially proposed to transport natural gas from centered Asia to Europe - particularly in Austria and Germany. Its main feature was the path which certainly had to overtake Russia. As a major supplier for it initially advised Azerbaijan (the gas from Shah Deniz), Iran (South Pars) and Turkmenistan (Dowletabat, South Iolotan-Osman). Azerbaijani gas was initially to supply a third of the fullness of the pipeline, but then its share has advanced considerably. Now, after a negative for "Nabucco" answers of consortium "Shah-Deniz-2" task itself actually lost all significance. Besides, the geographic string of links pipeline - Turkmenistan - Iran - Azerbaijan - Turkey - Bulgaria - Romania - Hungary - Austria - Czech Republic - without a key link (Azerbaijan) nearly misplaces all significance.
The total task cost was initially approximated at 7.9 billion euros, and then (in 2011) due to the increase in price of metal ore, sounded number - 11 billion euros. The pipeline was to be 3300 km. It was designed that the "Nabucco" will provide Europe with 26-32 billion cubic meters of gas per year. For the implementation of the task "Nabucco" was conceived by a consortium whose shareholders are OMV Gas GmbH (Austria), BOTAÅ? (Turkey), Bulgargaz (Bulgaria), SNTGN Transgaz S.A.(Romania). Date of start of the task were delayed, affected fierce backroom struggle and a very high rate.
It's more budgetary competitor
Now, after the sensational conclusion of consortium "The Shah- Denise- 2", about the TAR Transadriatic gas pipeline compose literally all. Previous major competitor "Nabukko" didn't perceive so gravely. So, than TAR could warrant a victory?
So, TransAdriaticPipeline (TAP) proposed to "The Shah- Denise- 2" gas transport from the Caspian district through Greece, Albania and through the Adriatic ocean to the south to Italy and further to Western Europe - only 520 kilometers. Shareholders of TAP are the Swiss AXPO (42,5%), the Norwegian Statoil (42,5%) and the German E.ON Ruhrgas (15%). possibly here lies the reason for the achievement of the TAP. The representative composition of shareholders might appear for founders "Shah-Deniz-2" (BP - 25,5%, Statoil - 25,5%, Total - 10%, Lukoil - 10% and the Azerbaijani state oil company SOCAR - 10%) more authoritative than in "Nabucco". Especially pay vigilance to the famous presence on both lists Norwegian Statoil. In supplement, the major shareholders "Nabucco" are not developer's fields in the Caspian Ocean, in compare to the shareholders of TAP.
The estimated capacity of the pipeline - 10 billion cubic meters a year, with the likelihood of expanding the capability to 20 billion as you can glimpse, the bandwidth is smaller than the "Nabucco". Complete construction of the pipe designed by 2019, that is, later "Nabucco."
The cost of the TAP task is approximated at 2.2 billion dollars, contrasted to 11 or even 7.9 billion euros in "Nabucco" looks like a budget type. Therefore, the length and, most significantly, reduced cost were much preferable to the possible transport capacity and timing of building.
Another very important, if not the principal cause for the alternative TAP was the genuine denial from Ashgabat and Tehran to approve its intention to consign in the necessary scale gas to Europe. At the time of the decision only Baku verified the readiness to fulfill their previous commitments.
The answer of the parties on the end the protracted epic
In Nabucco Gas Pipeline International reacted to the negative conclusion of consortium frostily, but it is quite civilized. Although, the business extends to assert that "Nabucco" boasts an exclusive opportunity to rendezvous the growing needs of Europe's natural gas.
Winning TAR don't hide delight. His managing director Kyetil Tungland announced: "A choice of the task of the Transadriatic gas pipeline for transport of the Azerbaijani gas to Europe - the first and important step in opening "Youzhny of a gas corridor". Thus, at first look, for Moscow with its energy ambitions, nothing has altered, somebody wants to contend with her.
Gazprom, although, celebrating a win. On the event of answers of the consortium "Shah Deniz 2" head of the Russian gas monopoly, Miller could not hide his satisfaction, undiplomatic remarking: "We have witnessed the funeral of "Nabucco".
Italy, Albania, Greece fully supported the conclusion of the consortium. Greek Finance Minister Yannis Sturnaras said that this task will stimulate the financial development of his debt-laden homeland. "I am assured that this project will assist to the creation of occupations in our country," - said the minister, supplementing that Greece will become a local "energy centers."
The worth of the sensational solutions...
It turns out, not so sensational. It is likely for this cause to it so rejoice in "Gazprom". The matter is that gas volumes that will be adept to skip the future TAP pipeline are so insignificant what to speak about any geopolitical success of competitors for the Russian monopolist still very much early. Annual capacity of the TAP in 10 billion cubic meters of gas makes about 2% from the total amount of the gas consumed in Europe. It is improbable that it will have a grave impact on the formation of charges for natural gas in the region.
It should be documented that futures for natural gas have absolutely vital promise for development,.despite on shale revolution. The issue is that crude oil is characterized by calorific proficiency of 5,4-5,8 million BTU on barrel that at the present charges of azure gold 22,8-24,5 US dollars for barrel are matching. That is, by uneven calculations, when falling quotations of WTI to 75 US dollars, it becomes unprofitable to use natural gas if the charges of it augment to 12 US dollars for one million BTU that is almost three times more the present charges, documented in analytical department of the Tusar FX company (included in the highest leagues of a rating of brokers Masterforex-V Academy ).
Source...