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    Shah Deniz Set to Take Half Share in Nabucco

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Summary

The Shah Deniz consortium could shortly acquire a 50% stake in the Nabucco pipeline, according to media reports.

by: Angela Long

Posted in:

Natural Gas & LNG News, Pipelines, Nabucco/Nabucco West Pipeline

Shah Deniz Set to Take Half Share in Nabucco

The Shah Deniz consortium could shortly acquire a 50% stake in the Nabucco pipeline, according to media reports.

The head of Nabucco stakeholder, Bulgarian Energy Holding (BEH), said on Thursday that talks were advanced. 

"We are holding talks almost every day. We expect Shah Deniz to acquire 50% of the shares in the Nabucco consortium," Mikhail Andonov, head of BEH, told reporters. He said he hoped the deal would be ready for approval by Nabucco shareholders on January 10.

The Shah Deniz II consortium has already signed a funding deal with Nabucco's rival, the Trans-Adriatic pipeline (TAP) pipeline, which aims to transport gas to Italy.

Shah Deniz II has said that Nabucco would have to hand over a significant stake in the project in order to stay in the race.

"There are two semi-finals for the Azeri gas. Such a deal will boost significantly the prospects for Nabucco," BEH's Andonov said.

A Nabucco spokesman declined to comment.

Nabucco is owned by six players, each with  a 16.7% share: Hungary’s MOL, Turkey’s Botas, Germany’s RWE, Transgaz of Romania and Bulgaria Energy Holdings. The Shah Deniz II project, based on vast gas fields in Azerbaijan, is operated by BP with leading energy companies Statoil, Socar, Total, Eni, Lukoil, TPAO and NIOC also involved.

See also: Bulgaria Benefits from both Nabucco and TAP