Bulgaria to contribute EUR 2.4bn for Nabucco gas pipe construction.

By bne IntelliNews December 1, 2010
Bulgaria will have to provide EUR 2.4bn according to the preliminary estimates for its section of the Nabucco pipeline, the manager of Nabucco Gas Pipeline International, Reinhard Mitschek said, quoted by investor.bg. The same price will have to be paid by each of the six companies, holding stakes in the Nabucco project company. Bulgaria is represented by the Bulgarian Energy Holding (BEH). The countries will have to pay EUR 0.4mn in cash, while for the remaining EUR 2bn they will have to provide bank guarantees. In Bulgaria's case, BEH is a public entity, so the state will have to guarantee the financial participation. The investment proposal will be ready in 2011 and afterwards the open season procedure will show which companies intend to use the pipeline for gas transportation. Half of the pipeline's capacity, however, will be reserved for the participant countries. The 3,300-km Nabucco pipeline for transport of natural gas from Central Asia and Middle East to Europe will have a transit capacity of 31bn cubic metres of natural gas per year (to be reached in 2018, with an option for an increase to 65bn cubic metres) and is expected to meet 5-10% of the European demand. The construction works, estimated at EUR 8bn, are to start at the end of next year, while the first supplies should be expected at the end of 2014. The national natural gas suppliers of Austria, Bulgaria, Hungary, Romania, and Turkey as well as German company RWE hold equal stakes in Nabucco Gas Pipeline International, while the project is being vastly supported by the EU and the United States.

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