- Political agreement among the Nabucco transit countries, Austria, Hungary, Romania, Bulgaria and Turkey signed in Ankara
- Germany is not transit country and therefore not party to agreement but states full political support
- Ensures Equal legal conditions for gas transit throughout the entire Nabucco pipeline system
- Lays down transport tariff methodology and rules for network access
- Establishes political committee comprising representatives of all signatory countries to support development of the project
Reinhard Mitschek, Managing Director of the Nabucco Pipeline Int., said: “The completion of the Intergovernmental Agreement represents a significant breakthrough in the realization of this project. The pipeline now has a stable legal basis, and can guarantee gas transit under equal and transparent conditions for all customers.”
Werner Auli, Chairman of the Nabucco Steering Committee: “The Intergovernmental Agreement lays down the political and legal foundation for the project. This strong expression of political commitment by all transit countries provides the project company with the confidence needed to take forward and successfully operate the pipeline.”
The agreement will provide a stable legal framework for the next 50 years and it has now also been firmly agreed that 50% of the pipeline’s capacity will be reserved for the shareholders and the remaining 50% offered to third-party shippers. At the same time, the IGA lays down a standard tariff methodology. These conditions will apply for 25 years after the pipeline commences operation, and guarantee equal access for all market participants. Consequently the IGA provides strong comfort to the potential gas supply countries who are considering selling gas to potential shippers of Nabucco.
The creation of a political committee (Nabucco Committee) will contribute to the efficient implementation of the project and is designed to be central information.
This forum will comprise representatives of the countries signing the agreement. Germany, the European Commission, EIB and EBRD as well as Nabucco Gas Pipeline Int. GmbH will attend as observers.
The next steps in taking forward Nabucco will include both the finalization of detailed technical planning as well as the social and environmental impact assessments. In parallel, the Nabucco consortium will start negotiations with banks and pursue the marketing of transport capacities in the open season process.
Nabucco project in brief
Nabucco will make a significant contribution in securing a natural supply for Turkey, South-Eastern Europe and Central - and Western-Europe. The pipeline will provide access to new sources of gas for European customers and encourage competition within the international gas markets. The Nabucco gas pipeline will run for over 3,300 km from Turkey via Bulgaria, Romania and Hungary to Vienna, close to the Baumgarten gas hub. Currently, the pipeline shareholders include OMV Gas&Power, MOL, Transgaz, Bulgarian Energy Holding, BOTAS and RWE. The planned capacity for the final development stage is 31 billion cubic meters. The total capital investments based on the project assessments of summer 2008 was EUR 7.9 billion.