RWE Set to Sell Stake in Nabucco
The Nabucco West pipeline project is set for upheaval as German utility RWE prepares to divest itself of its 16.7% stake.
Various media say RWE will sell its interest to Austrian outfit OMV, and an announcement is expected to be imminent.
Nabucco West, the truncated section of the bigger Nabucco project to bring gas from the Caspian to western Europe, will be a pipeline from the Turkish-Bulgarian border to Austria.
Shareholders apart from RWE are Bulgarian Energy Holding, Romanian Transgaz, Botas of Turkey, OMV and Hungary's FGSZ, each with a share just under 16.7%. If the expected transfer goes ahead, OMV will become the largest partner with a "double share".
RWE's chief executive Jurgen Grossman indicated earlier this year that his company had second thoughts about Nabucco West. In an interview in January, and again via a company statement in April, Mr. Grossman suggested RWE would no longer participate.
The Financial Times notes that previously, RWE had been an enthusiastic advocate of the project. However factors including some gas supply uncertainties and the knock-on effect of Germany's rejection of nuclear power for its energy providers have created a different environment.
Earlier this year Hungarian Prime Minister Mark Orban indicated problems within the consortium when he announced that MOL', his country's main energy company, would withdraw.
Nabucco is a rival to the planned South Stream pipeline across the Black Sea bed that Russian giant Gazprom and Italy's Eni are planning. Nabucco says construction of the pipeline is to begin in 2013 and gas is to be pumped from 2017.
In June the consortium developing Azerbaijan's Shah Deniz gas field chose Nabucco West as the single pipeline option for export of Shah Deniz Stage 2 gas to central Europe.