Oil & Gas Journal, TX
Feb 14 2008

Austrian gets exemption for Nabucco gas line

Uchenna Izundu
International Editor

LONDON, Feb. 14 — Austria will not have to grant third-party access
(TPA) along its section of the proposed Nabucco natural gas pipeline
under an exemption approved by the European Commission. The approval
means that Austria will have more freedom to determine capacity
allocation and transport tariffs.

The move demonstrates the European Union’s support for the 31 billion
cu m/year pipeline to carry Central Asian gas across the Caspian Sea
to Europe. The project competes with Russia’s proposed South Stream
proposal (OGJ, May 21, 2007).

The exemption is temporary, and Austria’s regulator has promised
safeguards to ensure competition with future capacity allocation on
that part of the pipeline.

The 3,330-km Nabucco pipeline is seen as a way for the EU to
diversify gas supplies for its members.

"The Nabucco company has applied for exemption from the general rule
of regulated third-party access in all four member states
concerned-Bulgaria, Romania, Hungary, and Austria," the EC said. "The
safeguards to which the exemption is subject include a capacity cap
preventing a dominant undertaking from booking more than half of the
Nabucco exit capacity in Austria and rules to ensure a transparent
and nondiscriminatory capacity allocation to third parties."

Jozias van Aartsen, the EU’s coordinator of the Nabucco project,
planned to visit Ankara to seek Turkey’s commitment to the pipeline.
Turkey has suggested that the project is not its only option and has
sought for Iranian gas to be supplied in the pipeline, despite EU
opposition.

Experts estimate that in the next 20 years Europe’s consumption of
natural gas will increase to almost 800 billion cu m/year from 500
billion cu m/year.

Last month, RWE Gas Midstream became the Nabucco consortium’s sixth
partner.

Other members are OMV Gas International, MOL, Bulgargaz, Transgaz,
and BOTAS, each holding a stake of 16.67% of Nabucco Gas Pipeline
International Ltd.

Gaz de France has also expressed an interest in joining the Nabucco
consortium, but Turkey has opposed its inclusion after the French
National Assembly voted that it would be a crime to deny the massacre
of Armenians under the Ottoman Empire.

From: Emil Lazarian | Ararat NewsPress