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Nabucco Gas Pipeline Deal Agreed

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  • #21
    Re: Nabucco Gas Pipeline Deal Agreed

    Germany's Gas War? Nabucco Vs. South Stream -- And Schroeder Vs. Fischer


    Former German Foreign Minister Joschka Fischer is now a lobbyist for the Nabucco gas pipeline project.

    It's been an up-and-down year for the Nabucco natural gas pipeline.

    Just as work on the long-stalled project seems set to finally begin, some shift -- usually at the hand of Russian energy giant Gazprom -- alters the commercial landscape and Nabucco's chances appear to recede.

    But the pipeline's supporters have just selected a big name in European politics to help push the project toward realization -- Joschka Fischer, the former head of Germany's Green Party and the country's foreign minister from 1998-2005.

    Fischer faces some serious obstacles in jump-starting Nabucco -- the would-be cornerstone in Europe's drive to kick its Russian energy habit, which has failed to attract commitments from suppliers and consumers alike.

    Not least among them is the fact that Nabucco's rival pipeline projects have a powerful lobbyist all their own -- Fischer's former boss, ex-Chancellor Gerhard Schroeder, who has spent four years on the payroll of Russian energy giant Gazprom.

    Isn't It Ironic?

    Federico Bordonaro, a senior analyst at the Italy-based security assessment group equilibri.net, says Nabucco's selection of Fischer makes sense but is still a "bit ironic."

    "Joschka Fischer was for a long time an important personality in Mr. Schroeder's government in Germany," Bordonaro says. "When Schroeder was chancellor of Germany, Fischer was foreign minister. And because Schroeder was appointed by the Russians as a lobbyist inside Gazprom, having Joschka Fischer on the Nabucco side is like having part of Germany with the Euro-Atlantic vision of the energy game in Eurasia -- as opposed to Schroeder's side, which is actually pro-Russian, if we want to speak in these terms."

    Schroeder has been key in helping Gazprom push forward on the Nord Stream project, a natural gas pipeline that aims to eventually deliver some 55 billion cubic meters (bcm) from Russia to Germany via the Baltic Sea.

    Nord Stream is due to become operational in 2011 and reach full capacity the following year. Germany -- and Schroeder -- has helped override any official resistance to the project within the European Union.

    But it is another Schroeder-backed Gazprom project that presents Nabucco with its main competition -- South Stream.

    Gazprom, whose frequent disputes with transit country Ukraine have it exploring alternative export routes, is hoping to use South Stream to carry a third of its gas deliveries to Europe by 2015. Under the terms of a new deal with Italy's Eni, South Stream's capacity could reach 63 bcm annually.

    Russia is now actively courting supplier states like Azerbaijan, Iran, and Turkmenistan -- as well as a key transit country, Turkey -- to sign on to the South Stream project.

    'Well-Established...Network'

    Fischer's daunting task, as Bordonaro explains it, is to convince those countries and others to throw their support instead behind the 31-bcm-capacity Nabucco, which traverses roughly the same route and would draw on many of the same suppliers.

    "Joschka Fischer has a vision of Europe as a federal entity. His aim has always been that of creating a strong, united Europe predicated on federalism. And also Joschka Fischer is one of the most favorable pro-Turkey members of the German political landscape," Bordonaro says.

    "And because Turkey is absolutely key to the Nabucco project, I think that another big reason for appointing Mr. Fischer was his already well-established diplomatic network, contacts with Turkey but also with other southeastern European countries such as Bulgaria and Romania," he says.

    Though South Stream promises to deliver twice as much gas to Europe as Nabucco, the Nabucco project still offers something the Gazprom scheme can't -- an opportunity for the EU to reduce its dependence on Russian natural gas.

    Some 25 percent of the EU's gas imports already come from Russia. January's gas cutoff during a Kyiv-Moscow transit dispute served as a painful reminder to many officials in Brussels to avoid greater reliance on Russian energy.

    Uphill Battle

    Even so, Fischer faces an uphill battle. Several Southeastern European countries envisioned as potential Nabucco partners have already signed deals with Gazprom on South Stream.

    Azerbaijan this week signed a deal to sell an unspecified amount of gas to Russia; last week another supplier, Kazakhstan, said it would have no extra gas to sell to Nabucco in the near future.

    Still, there have been signs of progress. Five transit countries for the Nabucco natural gas pipeline -- Turkey, Bulgaria, Romania, Hungary, and Austria -- are due to sign an intergovernmental agreement in Ankara on July 13 to allow it to pass through their territories. Germany will also attend the signing ceremony, as an observer.

    It remains to be seen whether Fischer's addition to the Nabucco team will keep the project on track for its anticipated 2014 launch date. But Bordonaro praises the appointment as a savvy and logical move -- much as Schroeder's was for Gazprom.

    "The Germans have tried to become the dominant diplomatic element in Brussels and Strasbourg, and it was interesting to note in the last four or five years that many key posts in the European Union -- especially in the industrial sector and the commercial sector and financial sector -- were occupied by Germans," Bordonaro says.

    "So I think that when both the Russians and the other players want to find a lobbyist, they very naturally look at Germany first. In this respect, I am not surprised that Schroeder and Fischer were the two [chosen]," he said.

    http://www.rferl.org/content/Germany..._/1768674.html
    "Nobody can give you freedom. Nobody can give you equality or justice or anything. If you're a man, you take it." ~Malcolm X

    Comment


    • #22
      Re: Nabucco Gas Pipeline Deal Agreed

      Nabucco Pipe Partners Must Each Give $2.3 Billion in Guarantees

      March 2 (Bloomberg) -- The six companies planning the Nabucco pipeline to bring Caspian gas to Europe will each have to arrange 1.7 billion euros ($2.3 billion) in guarantees for the project, according to RWE AG, one of the project’s partners.

      “The central issue is the so-called pre-completion guarantee,” Stefan Judisch, head of the German utility’s supply and trading unit, said yesterday in an interview in Vienna. “That will be 1.7 billion euros for each partner, according to current planning, because the shareholders will naturally have to guarantee the risk of construction completion.”

      Nabucco is designed to help cut western Europe’s dependence on Russian gas by carrying fuel from Azerbaijan and Iraq more than 3,300 kilometers (2,050 miles) across Turkey to Austria. The OMV AG-led venture’s shareholders, which include energy companies from Hungary, Bulgaria, Turkey and Romania, also have to each put up 400 million euros in equity, Judisch said.

      “The question is whether some of them will need a state guarantee or something like that” for the 1.7 billion-euro commitments, the executive said.

      Two of RWE’s five partners on Nabucco are “not the strongest,” Chief Executive Officer Juergen Grossmann said last week at a press conference in Essen, Germany, where the utility is based. Grossmann was “referring to the ability to finance, not the quality” of the partners, according to Judisch.

      Nabucco Gas Pipeline International GmbH’s shareholders must show “they can stem the 1.7 billion-euro pre-completion guarantee and those that can’t will have to say how they’ll work to ensure they can still make their contribution of that size,” he said.

      ‘Open Season’

      That will have to take place before Nabucco gauges interest for gas volumes through the pipeline, Judisch said, without specifying when the process known as an “open season” is scheduled.

      Bulgaria will borrow 1.2 billion euros from the European Investment Bank for guarantees to the Nabucco natural-gas pipeline project, Prime Minister Boiko Borissov said Jan. 21.

      Nabucco may revise its 7.9 billion-euro cost estimate for the link if it has to build a connection from the Iraqi border, Managing Director Reinhard Mitschek said Feb. 18. The company expects to determine the cost this year after it finishes examining the viability of using an existing Turkish pipeline to Iraq, he said.

      The companies planning Nabucco are
      RWE,
      Austria’s OMV,
      Budapest-based Mol Nyrt.,
      Bulgargaz EAD,
      Romania’s Transgaz SA and
      Ankara-based Boru Hatlari ile Petrol Tasima AS.

      http://www.businessweek.com/news/201...uarantees.html
      "Nobody can give you freedom. Nobody can give you equality or justice or anything. If you're a man, you take it." ~Malcolm X

      Comment


      • #23
        Re: Nabucco Gas Pipeline Deal Agreed

        Originally posted by KanadaHye View Post
        Nabucco Pipe Partners Must Each Give $2.3 Billion in Guarantees

        March 2 (Bloomberg) -- The six companies planning the Nabucco pipeline to bring Caspian gas to Europe will each have to arrange 1.7 billion euros ($2.3 billion) in guarantees for the project, according to RWE AG, one of the project’s partners.

        “The central issue is the so-called pre-completion guarantee,” Stefan Judisch, head of the German utility’s supply and trading unit, said yesterday in an interview in Vienna. “That will be 1.7 billion euros for each partner, according to current planning, because the shareholders will naturally have to guarantee the risk of construction completion.”

        Nabucco is designed to help cut western Europe’s dependence on Russian gas by carrying fuel from Azerbaijan and Iraq more than 3,300 kilometers (2,050 miles) across Turkey to Austria. The OMV AG-led venture’s shareholders, which include energy companies from Hungary, Bulgaria, Turkey and Romania, also have to each put up 400 million euros in equity, Judisch said.

        “The question is whether some of them will need a state guarantee or something like that” for the 1.7 billion-euro commitments, the executive said.

        Two of RWE’s five partners on Nabucco are “not the strongest,” Chief Executive Officer Juergen Grossmann said last week at a press conference in Essen, Germany, where the utility is based. Grossmann was “referring to the ability to finance, not the quality” of the partners, according to Judisch.

        Nabucco Gas Pipeline International GmbH’s shareholders must show “they can stem the 1.7 billion-euro pre-completion guarantee and those that can’t will have to say how they’ll work to ensure they can still make their contribution of that size,” he said.

        ‘Open Season’

        That will have to take place before Nabucco gauges interest for gas volumes through the pipeline, Judisch said, without specifying when the process known as an “open season” is scheduled.

        Bulgaria will borrow 1.2 billion euros from the European Investment Bank for guarantees to the Nabucco natural-gas pipeline project, Prime Minister Boiko Borissov said Jan. 21.

        Nabucco may revise its 7.9 billion-euro cost estimate for the link if it has to build a connection from the Iraqi border, Managing Director Reinhard Mitschek said Feb. 18. The company expects to determine the cost this year after it finishes examining the viability of using an existing Turkish pipeline to Iraq, he said.

        The companies planning Nabucco are
        RWE,
        Austria’s OMV,
        Budapest-based Mol Nyrt.,
        Bulgargaz EAD,
        Romania’s Transgaz SA and
        Ankara-based Boru Hatlari ile Petrol Tasima AS.

        http://www.businessweek.com/news/201...uarantees.html

        Romania and Bulgaria are like the dimwitted step children of the eu. They're involvment alone is a good sign this project is going to be a failure.
        For the first time in more than 600 years, Armenia is free and independent, and we are therefore obligated
        to place our national interests ahead of our personal gains or aspirations.



        http://www.armenianhighland.com/main.html

        Comment


        • #24
          Re: Nabucco Gas Pipeline Deal Agreed

          Originally posted by Armanen View Post
          Romania and Bulgaria are like the dimwitted step children of the eu. They're involvment alone is a good sign this project is going to be a failure.
          Lmao!

          By the time this project is completed, the next Artsakh war will be completed and half of Azerbaijan will be under NKR jurisdiction...
          Azerbaboon: 9.000 Google hits and counting!

          Comment


          • #25
            Re: Nabucco Gas Pipeline Deal Agreed

            Only an idiot would invest in a pipeline that goes by a frozen conflict that could erupt at any minute.
            Մեկ Ազգ, Մեկ Մշակույթ
            ---
            "Western Assimilation is the greatest threat to the Armenian nation since the Armenian Genocide."

            Comment


            • #26
              Re: Nabucco Gas Pipeline Deal Agreed

              Originally posted by Mos View Post
              Only an idiot would invest in a pipeline that goes by a frozen conflict that could erupt at any minute.
              Hahah so true,really in a second they will sit and watch billions of euros turning into dust,men what a site !

              Comment


              • #27
                Re: Nabucco Gas Pipeline Deal Agreed

                Sale Of Shah Deniz II Caspian Gas Delayed By Months - Sources

                BRUSSELS (Dow Jones)--A significant delay is expected in the sale of natural gas from the Shah Deniz II field in Azerbaijan being developed by a group of major energy companies, people familiar with the situation said.

                The delay--which could be for six months--could help the sponsors of Nabucco, one of the pipelines bidding to carry that gas to Europe, as it gives them more time to find a second source of gas and make the project viable.

                Nabucco is much bigger than its direct competitors, and the Azerbaijani gas would only fill a third of it.

                The consortium of companies--including oil majors like BP PLC (BP) and Total SA (TOT)--working on Shah Deniz II, an offshore in the Caspian basin, was aiming at finding a buyer for 10 billion cubic meters of gas in the first half of this year. However, talks with potential buyers are more complex than expected and are going to drag the process until later this year, the people said.

                http://online.wsj.com/article/BT-CO-...04-706817.html
                "Nobody can give you freedom. Nobody can give you equality or justice or anything. If you're a man, you take it." ~Malcolm X

                Comment


                • #28
                  Re: Nabucco Gas Pipeline Deal Agreed

                  Turkey caught between Nabucco and South Stream



                  Rival gas pipeline projects Nabucco and South Stream are seeking Turkey's support. But it would not be in Ankara's interest to decide between one or the other, said energy expert Roland Gotz. EurActiv Germany reports. Following the accident at Japanese nuclear power plant Fukushima, growing scepticism towards nuclear energy is bound to lead to a rise of gas imports in the EU, G�tz told the Berlin press earlier this week.

                  Consequently, despite improvements in energy efficiency and new methods of transport, the EU will be even more dependent on gas imports in 20 years' time than it is today, the energy expert predicted.
                  In this context, G�tz said that Turkey, which is key to both Nabucco and South Stream gas pipeline projects (see 'Background'), wants a bigger role, not just as a gas transit country, but as one that is able "to dictate" pipeline plans in order to secure the highest possible profit for itself.Officially, the country supports both projects, but it would be in Ankara's interest to exploit its position to become a hub for trade in gas, he believes.

                  Gotz said Turkey actually had no interest in making a decision right now, which is why its tactics were to procrastinate.The expert said Turkey had little interest in the South Stream project, in which it would play the role of a mere transit country and collect transit tax.But if Turkey were to actually buy gas from Azerbaijan, it could transport it through its existing pipeline network and sell it to a shorter version of the Nabucco pipeline, which would begin at Turkey's Western borders, he said.
                  Gotz indicated that the Nabucco project was facing difficulties. EU Energy Commissioner Gunther Oettinger had announced a decision on Nabucco for 2011. However, such a decision was already expected in 2010, he recalled.

                  The expert was critical of Oettinger's political push for Nabucco, which entailed the risk that the project's failure would bring about "a great disappointment". Normally a pipeline project would be financed by gas providers and buyers, but Nabucco is to be financed by a pure pipeline consortium, Gotz complained."This new concept is not working out," Gotz said. "The European Commission is a bureaucracy, and it is not their task to decide on a pipeline project. I find this approach problematic."

                  http://www.actmedia.eu/2011/04/21/to...h+stream/33318
                  "Nobody can give you freedom. Nobody can give you equality or justice or anything. If you're a man, you take it." ~Malcolm X

                  Comment


                  • #29
                    Re: Nabucco Gas Pipeline Deal Agreed

                    Originally posted by ZYPeng
                    Escorts.
                    Who is this parrot?

                    Comment

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