Agreement for Nabucco Pipeline signed - gas route without Russia.

Started by Syt, July 13, 2009, 11:42:21 AM

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Syt

July 13, 2009, 11:42:21 AM
Gas pipe deal aims to end Russia's monopoly

QuoteISTANBUL, Turkey (CNN) -- Officials from six countries gathered Monday in Turkey and signed a deal to build a U.S.-backed pipeline, aimed at breaking Russia's near-monopoly on natural gas supplies to Europe.

The proposed Nabucco pipeline would run from Turkey's eastern border, through Bulgaria, Romania and Hungary, to a key gas terminal in Baumgarten, Austria.

Germany is also a partner in the deal, which is being signed in the Turkish capital, Ankara.

Russia controls the current network of pipelines that supply Europe with natural gas.

To challenge the Nabucco proposal, Russia has proposed a competing natural gas pipeline to southeastern Europe. The South Stream pipeline would pass under the Black Sea and connect with Bulgaria. Russia and Italy would each control half of that pipeline. See map of pipeline »

However, Nabucco got a boost after Russia turned off the gas to Europe in January, during the latest in a series of price disputes with Ukraine, according to industry analysts.

The Nabucco project is budgeted at €7.9 billion (about $11 billion).

Since the idea's inception in 2002, plans for Nabucco have languished amid disagreements among consortium partners and lack of commitment from natural gas suppliers.

Turkey had demanded to retain 15 percent of the gas passing through the pipeline for consumption and export, which its European partners rejected.

The energy minister of Azerbaijan is expected to attend Monday's signing, a top Western government official said.
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Gas from Azerbaijan's Shah Deniz 2 field will be a crucial component of the project. European officials have raised hopes that other gas producers, such as Iraq and Turkmenistan, also might contribute to the pipeline.

Big hurdles remain for the pipeline project named after an opera by Verdi.

Consortium members must raise billions of dollars for the Nabucco project. Construction has not begun, and gas is not projected to be pumped through until 2014.

Still, industry analysts called Monday's intergovernmental agreement a significant development.
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"It's one of those steps that moves Nabucco out of the possible column and into the probable column," said John Roberts, an energy security specialist with Platts.

"My own guess is roughly by the end of the year, it will be pretty clear that Nabucco will be built."

I am, somehow, less interested in the weight and convolutions of Einstein's brain than in the near certainty that people of equal talent have lived and died in cotton fields and sweatshops.
—Stephen Jay Gould

Proud owner of 42 Zoupa Points.

Valmy

#1
July 13, 2009, 11:44:45 AM
OMG US IMPERIALIZM!
Quote"This is a Russian warship. I propose you lay down arms and surrender to avoid bloodshed & unnecessary victims. Otherwise, you'll be bombed."

Zmiinyi defenders: "Russian warship, go fuck yourself."

Syt

#2
July 13, 2009, 11:50:01 AM
QuoteSince the idea's inception in 2002, plans for Nabucco have languished

It's our fault. :weep:
I am, somehow, less interested in the weight and convolutions of Einstein's brain than in the near certainty that people of equal talent have lived and died in cotton fields and sweatshops.
—Stephen Jay Gould

Proud owner of 42 Zoupa Points.

Valmy

#3
July 13, 2009, 11:52:50 AM
Quote from: Syt on July 13, 2009, 11:50:01 AM
QuoteSince the idea's inception in 2002, plans for Nabucco have languished

It's our fault. :weep:

I blame all the Russophiles on this board.
Quote"This is a Russian warship. I propose you lay down arms and surrender to avoid bloodshed & unnecessary victims. Otherwise, you'll be bombed."

Zmiinyi defenders: "Russian warship, go fuck yourself."

derspiess

#4
July 13, 2009, 11:56:08 AM
Quote from: Syt on July 13, 2009, 11:42:21 AM
Gas from Azerbaijan's Shah Deniz 2 field will be a crucial component of the project. European officials have raised hopes that other gas producers, such as Iraq and Turkmenistan, also might contribute to the pipeline.

So then Russia will probably invade Azerbaijan by 2013.
"If you can play a guitar and harmonica at the same time, like Bob Dylan or Neil Young, you're a genius. But make that extra bit of effort and strap some cymbals to your knees, suddenly people want to get the hell away from you."  --Rich Hall

grumbler

#5
July 13, 2009, 12:15:52 PM
Quote from: derspiess on July 13, 2009, 11:56:08 AM
Quote from: Syt on July 13, 2009, 11:42:21 AM
Gas from Azerbaijan's Shah Deniz 2 field will be a crucial component of the project. European officials have raised hopes that other gas producers, such as Iraq and Turkmenistan, also might contribute to the pipeline.

So then Russia will probably invade Azerbaijan by 2013.
That was exactly what I thought when I read this sentence!  :D
The future is all around us, waiting, in moments of transition, to be born in moments of revelation. No one knows the shape of that future or where it will take us. We know only that it is always born in pain.   -G'Kar

Bayraktar!

The Minsky Moment

#6
July 13, 2009, 12:32:43 PM
Great.

Now they need to get the gas to pipe through it. :contract:
The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.
--Joan Robinson

Josquius

#7
July 13, 2009, 01:04:57 PM
Isn't the main problem with Russia and gas though more that so much of Europe's gas comes from Russia in the first place?

Quote from: Valmy on July 13, 2009, 11:44:45 AM
OMG US IMPERIALIZM!

EU imperialism :p
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Tonitrus

#8
July 13, 2009, 05:15:01 PM
How much alternative solar/wind/nuclear power capacity would $11 billion* buy?



*and like any construction project, we all know the final tab will be a lot more than that.

The Brain

#9
July 13, 2009, 05:18:26 PM
Quote from: Tonitrus on July 13, 2009, 05:15:01 PM
How much alternative solar/wind/nuclear power capacity would $11 billion* buy?



*and like any construction project, we all know the final tab will be a lot more than that.

$11 billion would probably buy you two 1,600 MW nuke reactors, if you're lucky.
Women want me. Men want to be with me.

CountDeMoney

#10
July 13, 2009, 05:21:43 PM
Fuck.  I thought it was the Nabisco pipeline.   Fucking Keebler.

The Minsky Moment

#11
July 13, 2009, 05:21:53 PM
Quote from: Tyr on July 13, 2009, 01:04:57 PM
Isn't the main problem with Russia and gas though more that so much of Europe's gas comes from Russia in the first place?

Nabucco is being approved on the "if you build it they will come" theory.

The hope is that the the physical reality of seeing the pipeline construction happen will stir some of the 'stans to invest seriously in production.

The funny part is that one obvious country that could be a major supplier of gas through Nabucco is  . . . Iran.  Kinda puts the problems with the Russians in perspective.
The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.
--Joan Robinson

Martinus

#12
July 13, 2009, 06:42:22 PM
Great news!  :cool:

Martinus

#13
July 13, 2009, 06:43:35 PM
Quote from: derspiess on July 13, 2009, 11:56:08 AM
Quote from: Syt on July 13, 2009, 11:42:21 AM
Gas from Azerbaijan's Shah Deniz 2 field will be a crucial component of the project. European officials have raised hopes that other gas producers, such as Iraq and Turkmenistan, also might contribute to the pipeline.

So then Russia will probably invade Azerbaijan by 2013.

Will the send in the Nigaz?
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