OMV CEO Relaxed about Nabucco Delays

SUPPLY TALKS PROGRESSING

Ruttenstorfer said future gas demand in Europe would be big enough for both Nabucco and Gazprom's rival South Stream project as well as any smaller pipelines.

Nabucco has the edge over the others because of its intergovernmental agreement, he said.

"Nobody else has this, it gives us a dramatic advantage compared to other projects."

He added that OMV, one of Nabucco's six shareholders, was committed to delivering the project on schedule.

"The most important thing is also to get the gas, because without the gas, there's no pipeline," he said.

Gas supply negotiations with Azerbaijan and in northern Iraq have started, he said, and progress was being made.

"In the last weeks and months we have made really significant progress. But on the other hand, this is not an easy contract. Such contracts cannot just be done overnight.

"The positive thing is that these discussions are going on, they will continue to go on for a couple of months then there will be the final basis for the final investment decision."

The Vienna-based Nabucco consortium expects the pipeline will transport its first gas from Iraq, 10 billion bcm, and another 8 billion bcm from Azerbaijan in 2015.

(Source: Reuters)

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