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Second Nabucco Political Committee Concludes in Vienna with Resounding Declaration of Political Support
The Nabucco Political Committee-Meeting of the Nabucco Ministers of the Transit Countries convened in Vienna, Austria, confirming full political support for the Nabucco Gas Pipeline Project and for the existing Intergovernmental Agreement giving comfort to investors and producers.
Established by the Nabucco Intergovernmental Agreement, and comprising representatives of all signatory countries, the Nabucco political committee was formed to support the development of the project, and to ensure effective cooperation between the state parties.
The ministerial committee was hosted by the Austrian Economic Ministry, and was attended by the European Commissioner for Energy Günther Oettinger, the Bulgarian Prime Minster Boyko Borissov, Austrian Minister for Economy Reinhold Mitterlehner and the Energy Ministers from Bulgaria, Hungary, and Romania, as well as a high-level delegation from Turkey alongside the Nabucco shareholders.
The meeting was also attended by the Energy Minister of Azerbaijan, Natig Aliyev, giving an overview on the developments from the producers’ side.
The political committee unanimously adopted a ministerial declaration in support of the Nabucco project. The declaration welcomed the signing of the intergovernmental agreement on TANAP, which, it said, “further paves the way for the development of the Nabucco project, including its western part.” It further went on to declare the full political and regulatory support of the signatory countries to the project, affirming that the IGA and the Project Support Agreements which were put in place for the Nabucco project, extend fully to the Western part of the project, referred to as Nabucco West.
The Ministerial Committee also demonstrated the advanced stage of project development of the Nabucco project. In a media conference call following the committee, Managing Director of Nabucco, Reinhard Mitschek informed members of the media that a funding agreement with the Shah Deniz consortium was imminent, and could be expected as soon as the fourth quarter of this year.
Mr. Mitschek also pointed out that Nabucco enjoys continued stable support from its shareholders, and looks forward to welcoming producers onboard, which would add value to Nabucco as a midstream infrastructure company.
The political committee highlighted the advantages of Nabucco as the most advanced and viable project in the Southern Gas Corridor, emphasizing its scalability, and its unique position as a direct link connecting TANAP to the Central Eastern Gas Hub at Baumgarten. Nabucco will connect Caspian gas to millions of potential customers in growing economies all across Europe, including the growing economies of South Eastern Europe and the Balkan region, and by opening the Southern Gas Corridor, ensure freedom of choice and diversification for all countries and related consumers in Europe.
Nabucco Gas Pipeline International GmbH
Nabucco Gas Pipeline International GmbH (NIC) was established on 24 June 2004 to develop, build and operate the Nabucco pipeline. Based in Vienna, the company operates midstream segment is organized according to the principles of unbundling and is subject to EU legislation. NIC is owned by the Nabucco shareholders and is responsible for the development, construction, operation, negotiation and allocation of capacity Nabucco pipeline. NIC will be the only company in direct contact with carriers, will offer a one-stop solution shop and will operate as an independent business entity in the market, acting independently from their parent companies. The pipeline will be constructed by the National Nabucco Companies (NNC's), which are subsidiaries of NIC in each transit country.
Ownership structure
Nabucco shareholders are: OMV (Austria), FGSZ (Hungary), Transgaz (Romania), Bulgarian Energy Holding (Bulgaria), Botas (Turkey) and RWE (Germany). Shareholders are responsible for negotiating gas supply contracts.
BEH
Bulgarian Energy Holding EAD is a joint-stock company 100% owned by the state. Structure Bulgarian Energy Holding EAD includes seven subsidiaries: Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Bulgaria EAD, Bulgartransgaz EAD and Bulgartel EAD.
Although all companies are owned holding's structure and directly subordinated BEH EAD, all retain their operational independence and licenses.
The total length of main gas pipeline network in Bulgaria is high pressure 2.645 km, of which 1,700 km consist of branches and facilitating connections to consumers across the country. Other 945 km of transmission mains provide transit to Turkey, Greece and Macedonia.
Natural gas transmission network for local consumers and for transit includes 10 compressor stations and 68 stations to reduce pressure.
Bulgartansgaz Bulgargaz EAD and EAD are two entities that operate on natural gas transportation and gas supply.
Bulgartransgaz EAD acts as:
- A business operator in transport / transit transport, and
- As a supplier of natural gas storage, maintenance, operation, management and development of underground storage of gas. Regarding this second position, the company is very involved in program development activities focused on compliance initiatives gas transport in line with EU requirements.
In 2011, Bulgartransgaz EAD has crossed a total of 15.1 bcm of natural gas to countries in the region. Currently, Bulgaria is only issued a permit for supply of natural gas and is owned by Bulgargaz EAD. In 2011 Bulgargaz EAD has sold 2.987 billion m³ of natural gas domestic market.
BOTAS
Turkish state company, Botas, was founded in 1974 to carry oil from Iraq in the Gulf of Iskenderun. Headquartered in Ankara and over 2,800 employees, Botas ensure efficient operation of the transportation system for petroleum and natural gas throughout the country. Botas operates about 12,000 km of natural gas domestic market. With the completion of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline system operated by Botas reached 3400 km, and transmission capacity will increase from 80.2 million tons a year to 130 million tonnes per year . As natural gas trader in 2011 Botas imported and sold 39 billion cubic meters of natural gas as a result of the signing of eight separate contracts of sale concluded with companies in 6 countries. Of this amount, 5.2 billion cubic meters of liquefied natural gas have been through the terminal in Marmara Ere?lisi. With important role in Nabucco, BOTAS is a participant in the natural gas transportation projects that will pave the way for eastern gas to Europe via Turkey.
OMV Aktiengesellschaft
Sales worth 34.05 billion euros at group level and workforce consists of 29,800 employees in 2011, OMV Aktiengesellschaft make one of the largest Austrian industrial companies traded. Regarding Exploration and Production, OMV is present in Romania and Austria, two countries based, and holds a balanced international portfolio. In late 2011, certain oil and gas reserves of approximately 1.13 billion OMV were boe and production amounted to almost 288,000 boe / d in 2011. With a trade volume of around 40 bcm in 2011, gas trading platform from OMV, central gas central Europe (Central European Gas Hub) is one of the most important centers of continental Europe. OMV further strengthened its position by owning a 97% stake in Petrol Ofisi, the main retail and commercial company in Turkey. The gas and energy, OMV sold approximately 18 bcm of gas in 2010. In terms of refining and marketing, OMV has an annual refining capacity of 22.3 million tons, and at the end of 2011, approximately 4,500 stations in 13 countries, including Turkey. In Austria, OMV operates a network of pipelines with a length of 2,000 km with a capacity of about 101 marketing bcm in 2011.
Sustainability
OMV is a signatory to the UN Global Compact (UN Global Compact) and an active supporter of the values promoted in its Code of Conduct. This includes, among others, a strong sense of responsibility towards the social and natural environment, particularly in regions with a weak economy. OMV constantly worrying and responsible economic, environmental and social issues related to work. The company presents its activities in a sustainability report in accordance with the Global Reporting Initiative Guidelines (Global Reporting Initiative Guidelines).
RWE AG
RWE AG is one of the five largest utility companies in Europe. The group has expertise in the production of oil, gas and coal, construction and operation of conventional power plants and renewable energy, commodities trading, and transmission and sale of electricity and gas. Over 70,000 employees provide electricity to 16 million customers and gas to 8 million customers. In fiscal year 2010, the Group recorded revenue of 53.3 billion euros. RWE Supply & Trading GmbH brings together successfully on the activities of RWE with wholesale gas procurement activities, structuring and optimizing long term. Thus, RWE Supply & Trading GmbH is responsible for the economic optimization of the entire regulated activities conducted by RWE Group in the gas in terms of procurement, transportation and storage. To fulfill the goal, the company is involved in pipeline projects and expanding its business relationships with suppliers of pipeline gas and LNG suppliers. Currently, RWE Group manages a portfolio of supply of 50 billion cubic meters / year in Europe, a gas production of over 3 billion cubic meters per year and gas storage capacity of approximately 6.1 billion cubic meters.
TRANSGAZ
National Gas Transmission Company Transgaz, with headquarters in Medias, was founded in April 2000 as a result of the reorganization of the former national gas companies vertically integrated Romgaz. Transgaz is 73.5097% owned by the state, represented by the Ministry of Economy, Trade and Business Environment, 14.9876% Property Fund, while 11.5027% of the shares were listed on the Romanian Stock Exchange in January 2008 . The main activity is the transportation of natural gas, natural gas dispatching and international transit, and research and design in the natural gas transportation. In the last four years, the total amount of gas transported through national transport system was 16 billion cubic meters in 2003, 15.2 billion cubic meters in 2006, 11.4 billion cubic meters in 2010 and 11.1 estimated billion cubic meters in 2011. Currently, Transgaz operates over 13240 km of pipelines. In 2006 the company's turnover was 268.8 million euro and in 2010 of 311.9 million Euro.
FGSZ Ltd.
FGSZ Natural Gas Transmission Closed Company Limited (FGSZ Ltd.) - Member of MOL Group - headquartered in Siofok owns and operates a natural gas transmission pipeline under high pressure throughout Hungary. At the same time, coordinates, as sole holder of the license TSO, the operations of the entire system of natural gas. In addition, the aims and operations of natural gas transit to partners in Serbia, Bosnia and Romania, but is in a constant battle to extend transit markets. This high-pressure piping system delivers natural gas to gas distribution companies, power plants and large industrial consumers connected to gas transmission network.
Home LIABILITY of the company is to provide high-pressure gas transmission in safe, uninterrupted and optimal operating legally within the piping system, including regarding the acquisition and delivery of natural gas transmitted through pipes at high pressure and the transport and measurement to ensure quality and quantity of gas transmitted centrally to provide odorizing gas pressure to regulate and protect against overpressure.
The company has a history of nearly 70 years and during the past four decades has benefited from upgrades in a rapid pace. FGSZ Ltd. operates natural gas transmission responsibly at a high level of security in a non-discriminatory manner and ecology, which meet the highest technical standards. It is possible to consistently reduce pressure on the environment through continuous development of technology for the transmission of natural gas.