Cost Escalations Cast Doubt on Nabucco

BP has put the cost of the Nabucco gas pipeline at $19 billion, a significant increase from $11 billion figure previously quoted by the consortium proposing to move Caspian gas to Europe.

The Guardian reports that BP's assessment shows the significant increase, partly because of soaring commodity prices. The price of iron ore, a key ingredient for steel, has increased by half in the past year.

BP is not a shareholder in the Nabucco pipeline consortium, but is a partner in Shah Deniz II project in Azerbaijan due to come on stream in 2017.

Shah Deniz would initially feed he proposed 2,000-mile (3,200km) pipeline, with hoped for gas from Iraq and Turkmenistan likely following in later years

Read the Full Article at the Guardian HERE