RWE: Nabucco the priority
German energy firm RWE, a key player in the EU-backed Nabucco natural gas pipeline, says that Nabucco is still at the top of its list. This, in response to Gazprom’s recent proposition that RWE join in to the competing South Stream pipeline project, a move which is seen as an escalation by Gazprom in its efforts to scuttle Nabucco, writes an editorial on SigurantaEnergetica.ro.
RWE has responded that it would “look into this offer, as it does [with] every offer. At the same time, RWE would like to make it absolutely clear that its participation in Nabucco definitely takes priority, because Nabucco best meets RWE’s investment criteria and fits in best with its ongoing projects… Nabucco is the only pioneering and cost-effective initiative for diversifying gas sources and gas transport routes and competitiveness in Europe” (RWE press release, July 12).
Well, that clears the air, doesn’t it? Furthermore, the German energy enterprise is highlighting Nabucco’s strengths like having all of its transit countries on board the project, not to mention the ongoing negotiations with several investment banks, like the EBRD.
What’s more, notes analyst Vladimir Socor, the German government seems to be coming out with a stronger stance in support of Nabucco, dashing any hope on the part of Moscow to receive EU funding for its South Stream project if it had the Germans on board.
Thus, Gazprom’s move has backfired. Instead of disrupting the Nabucco consortium in Germany, it has prompted the clearest expression of support from the German government in the Nabucco project’s history.
If RWE had thrown its weight behind South Stream, confidence in the viability of Nabucco would have seriously been undermined, according to the analysis.
Meanwhile, the German-Russian Nord Stream pipeline will surge forward, despite any hard feelings generated by Germany’s rejection.
Read all about it here.