NABUCCO prospects

Crescents Petroleum and Dana Gas from the UAE, the Austrian OMV and the Hungarian MOL recently published a draft project for exploring natural gas fields in Iran. The estimated cost of the project is USD 8 billion. The initiators of the project think that these fields could satisfy the NABUCCO demand and thus make it a viable alternative route to the Russian Gazprom pipes.

Initially NABUCCO was due to be supplied from Central Asia and Azerbaijan, and the gas transited through Georgia and Turkey, but during the May 8 Prague energy summit the NABUCCO declaration of intent was signed by Azerbaijan, Georgia, Turkey and Egypt, not Uzbekistan, Kazakhstan and Turkmenistan, who were supposed to be the major suppliers. Consequently Iran could become the NABUCCO route’s major supplier. However Iran has not been officially invited to participate in the project.