“As development of the Nabucco project continues, we are pleased to be able to announce the achievement of this highly significant milestone. Once constructed, the Nabucco pipeline will offer producers and shippers access to the growing markets of South Eastern and Central Europe, as well as augmenting their access to the Central European Gas Hub at Baumgarten. The Open Season process will be conducted according to the principles of open access and supply diversification,” Reinhard Mitschek, CEO of Nabucco Gas Pipeline International, said in a press release Monday.
The first phase of the Open Season process offers potential shippers the possibility to register their interest in booking capacity in the pipeline and to request access to the Open Season documents, following which they can provide non-binding capacity bookings.
The Open Season documents include the details of the Open Season process, the form of gas transportation agreement and the related network code, setting out the terms and conditions proposed by the transporter for transportation services through the Nabucco pipeline.
“The proposals laid out by the company are highly competitive, and commercially attractive. Based on ongoing discussions with producers and shippers, we have reason to be confident of a high level of interest in this phase of the Open Season process. The Open Season process will adhere to the highest standards of transparency whilst at the same time ensuring that information exchanged with potential shippers during the process is treated in confidence,” said Frank Siebert, CFO of Nabucco Gas Pipeline International.
The first phase of the Open Season process is expected to be concluded by the end of the second quarter of 2013 and shippers will be invited to submit binding bids in thr third quarter.
“To provide for a certain level of flexibility, NABUCCO Gas Pipeline International GmbH reserves the right to extend or otherwise vary the timetable of the Open Season process,” the company said in the release.
The Nabucco pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Bulgarian border, transiting Hungary, Bulgaria and Romania to the Central European Gas Hub in Baumgarten, Austria. Via Baumgarten, gas from the Nabucco Pipeline can be transported to over 500 million customers across Europe.
Austrian oil and gas group OMV in March bought 16.7% in Nabucco from Germany’s RWE. The consortium developing the Nabucco pipeline project also includes Romania’s Transgaz, Tukey’s Botas, Bulgarian Energy Holding, and Hungary’s MOL.
After buying out RWE’s stake, OMV has the biggest share in the project, 33.34%, while the other shareholders have 16.67% each.
Nabucco shareholders in January reached an agreement with four potential investors and Azerbaijani Shah Deniz consortium to jointly finance the pipeline’s construction. The shareholders and potential investors SOCAR, BP, Statoil, and Total have reached agreement in principle on the joint funding of the development costs of the Nabucco West up to the pipeline selection decision for Shah Deniz’ European export route.