Romania Assures Nabucco Section Will Be Private
Romania has emphasised that the section of the Nabucco pipeline to go through its territory will not be controlled by the government.
The eastern European country's government has published a draft law promising that the Romania section of the pipeline will not be under state control. Bloomberg said this is a move to reassure potential investors in the project.
“It’s necessary to clarify the Nabucco ownership regime,” the Economy Ministry said in the bill on its website. “The project will be carried out through private investment and investors need guarantees to invest.”
“The unclear law provisions and the resulting uncertainties may be a major impediment against the project, as investors won’t agree to finance a pipeline which will be turned into a state asset,” the ministry said.
The Nabucco venture is competing with the Trans-Adriatic Pipeline (TAP) for rights to export gas from the Shah Deniz field in Azerbaijan’s part of the Caspian Sea. It would help the EU diversify supplies away from Russia, which provides a quarter of the bloc’s gas.
The Romanian section of the pipeline will be about 470 kms (290 miles) long. Nabucco managing director Reinhard Mitschek has estimated that around €1.3 billion investment will be needed for that part of the project.
See also: Final Exam: TAP v Nabucco West