Nabucco price up from 7bln to 12-15bln euros

PanARMENIAN.Net - Projected investment in the Nabucco gas pipeline has been revised up to 12-15 billion euros ($18-22 billion), sources close to the matter told Reuters on May 5, but the consortium said such figures were speculation.

The current 7.9 billion euros ($11.7 billion) investment figure is based on a 2005 feasibility study. The Nabucco consortium said the figures were under review. The Nabucco plan intends to bring up to 31 billion cubic metres of gas annually from the Caspian region to an Austrian hub via Turkey and the Balkans. It aims to open in 2015.

"The draft was presented to partners, which projected an increase of almost 100 percent to the initial (investment) calculations," one source close to the matter in Turkey said. He added the sharp rise in the investment projection mainly reflected the inclusion in calculations of the portion of the pipeline between Turkey and source countries. Previous calculations did not include this portion.

But in Vienna, Nabucco spokesman Christian Dolezal told Reuters: "The current investment figures of 7.9 billion euros are based on the Nabucco feasibility study, which was completed in 2005." "Any other figures released in the meantime are speculations and (are) not accurate," he said, adding the figures were under a review from which results would be released later.

Some partners investing in Nabucco were raising objections to meeting the revised sum and sought a cost reassessment, the sources in Turkey said. Another source said the investment decision was originally expected to be taken this year, but the progress in supplying natural gas had not reached the desired level.

Furthermore, problems regarding gas supply were also standing in the way of the progress as Hungary had not yet signed the project supply agreement.

"These developments could cause the decision to be postponed to 2012," the same source said.