The Nabucco gas pipeline project backed by the European Commission, aimed at importing natural gas from Caspian suppliers other than Russia, has reached an important milestone by reaching agreement on almost 4 billion euros in loans from three major international financial institutions. Subject to final agreement of their respective boards of directors, the EIB will lend two billion euros, 1.2 billion EBRD and World Bank 800 million. The final investment decision of the proposed pipeline is 3,300 km rally Turkey to Austria must take place by the end of the year and construction could start in 2011.The first deliveries of gas from Azerbaijan and perhaps Iraqi Kurdistan are expected late 2014 early 2015 as the Nabucco consortium, based in Vienna payday advances.
The shareholders of Nabucco, the German RWE, Austrian OMV, BEH Bulgarian, Turkish Botas, Hungary's MOL and the Romanian Transgaz each holder of 16.67% stake, will finance 30% of own project.
If the strong financial support ahead now, some observers remain skeptical about the ability to buy the Nabucco gas volumes sufficient to justify the construction, estimated to cost around 8 billion euros. The agreement signed last week between Russia and Azerbaijan providing a doubling of purchases from Moscow to the former Soviet republic has heightened concerns about Nabucco.
