Decisive Year’ for Delayed Nabucco (Central Asia) Pipeline Project
February 5, 2010 by supermario
Filed under World News
Michael Kahn & Sylvia Westall
thejakartaglobe.com
Prague. A natural gas glut, weaker demand and a tough financing environment in 2010 will likely slow the launch of the Nabucco pipeline, an already-delayed project aimed at reducing Europe’s dependence on Russian supplies.
The pipeline is supposed to start transporting its first gas at the end of 2014. Analysts now see that as overly optimistic given demand forecasts and the challenge of lining up supplies to fill it before financing is completed.
“Nabucco has suffered a bit from the chicken and egg scenario in that you need gas quantities to fill it which aren’t coming forward until the financing is secure,” said Jorgen Henningsen, an energy adviser to the European Policy Center. “If the project is postponed it shouldn’t be too much of a surprise because Nabucco has been a long postponement of decisions for a number of years. It has not really taken off as a full-fledged project.”
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