Iran's gas chief: Nabucco pipeline is "Dead Project"

Managing Director of the National Iranian Gas Exporting Company (NIGEC) Hossein Bidarmaghz termed the Nabucco pipeline project a "dead plan", and said Iran can supply gas to Europe via Turkmenistan.According to a Tehran Times report, Bidarmaghz referred to the recent agreement between the managers of Nabucco Gas Pipeline International and Turkmenistan's leaders for the construction of the Trans-Caspian Gas Pipeline, and said at present most experts believe Nabucco is a "dead" and "on-paper" project. "Despite the inking of the Nabucco project in 2009, so far no measure has been taken for its construction", he stated. Iran is considered a potential source of natural gas supplies for Nabucco. Nabucco's viability was also questioned by Hungary's Minister For National Development, who said on Monday that the gas conduit lacked a firm commitment from buyers and sellers of gas. Tamas Fellegi also warned that the cost of the gas-pipeline could quadruple to EUR 26bln. One of the most serious problems Nabucco faces is finding supply sources, which is why its launch was postponed from 2105 to 2018. Nabucco, which faces stiff competition from rival pipelines including Russia's South Stream, is to bring up to 31 billion cubic meters of gas a year from the Caspian region to Austria via Turkey, Bulgaria, Romania and Hungary. OMV is one of six equal-share partners in Nabucco alongside Bulgaria's BEH, Hungary's MOL, Romanian Transgaz, Turkish BOTAS and RWE from Germany. Each of participants has equal share to the amount of 16.67 percent. Talks are underway with Bayerngas GmbH, a publicly owned German-Austrian gas procurement vehicle which expressed interest in joining the project as a seventh shareholder. Nabucco is aimed at reducing Europe's energy dependence on Russia.