Identifier
Created
Classification
Origin
08VIENNA1194
2008-08-19 15:08:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vienna
Cable title:
OMV says Demand Strong for Nabucco Gas Pipeline
how-toVZCZCXRO3991 PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHVI #1194 2321508 ZNR UUUUU ZZH P 191508Z AUG 08 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC PRIORITY 0801 INFO RHEBAAA/DEPT OF ENERGY WASHDC RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS VIENNA 001194
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: ENRG ECON EPET AU
SUBJECT: OMV says Demand Strong for Nabucco Gas Pipeline
REF: a) Vienna 1044 and previous, b) Brussels 1238
Sensitive but unclassified - not for internet distribution.
UNCLAS VIENNA 001194
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: ENRG ECON EPET AU
SUBJECT: OMV says Demand Strong for Nabucco Gas Pipeline
REF: a) Vienna 1044 and previous, b) Brussels 1238
Sensitive but unclassified - not for internet distribution.
1. (U) Nabucco consortium lead OMV has released a survey of large
gas customers showing prospective demand approximately double the
pipeline's technical capacity of 31 bcm per day. Nabucco chairman
Reinhard Mitschek cited the "100% overbooking ... from day one" as
"evidence for the need to build the pipeline in a growing gas
market."
2. (SBU) Following the study's release on August 19, Embassy rep
spoke with Nabucco Company spokesman Christian Dolezal who confirmed
that the survey shows a 100 percent overbooking of Nabucco's
projected gas capacity from 2013 to 2030. The survey comprised the
full spectrum of European energy providers, who were unnamed for
reasons of confidentiality. Dolezal said buyers are confident that
Nabucco will find enough gas sources in the region and that
Nabucco's business partners value its "multi-sourcing approach" --
connecting the pipeline to as many possible suppliers as possible in
the Caspian and Middle East.
3. (SBU) Dolezal could not provide a timetable for steps leading to
the final investment decision, which he expects to be taken in late
2008 or early 2009. Three conditions must be met before this
decision:
-- an approved exemption from certain provisions of Regulated Third
Party Access based on Article 22 of the EU Gas Directive;
-- the conclusion of the Intergovernmental Agreement with Turkey;
-- and the execution of an "Open Season" (invitation to shippers to
announce their interest in transportation of gas via Nabucco).
4. (SBU) COMMENT: OMV appears understandably nervous following
repeated delays in Nabucco's formal launching, soaring pipeline
costs, rumors about the South Stream pipeline project, and now the
crisis in Georgia which underscores the need for energy independence
but complicates potential Caspian supplies. Growing potential
demand for Nabucco's gas, as evidenced by the latest survey, is
welcome but not unexpected news. Unless Nabucco shows progress on
the supply side and transit side, OMV may be hard-pressed to
generate good news and manage expectations in the coming months.
END COMMENT.
GIRARD DICARLO
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: ENRG ECON EPET AU
SUBJECT: OMV says Demand Strong for Nabucco Gas Pipeline
REF: a) Vienna 1044 and previous, b) Brussels 1238
Sensitive but unclassified - not for internet distribution.
1. (U) Nabucco consortium lead OMV has released a survey of large
gas customers showing prospective demand approximately double the
pipeline's technical capacity of 31 bcm per day. Nabucco chairman
Reinhard Mitschek cited the "100% overbooking ... from day one" as
"evidence for the need to build the pipeline in a growing gas
market."
2. (SBU) Following the study's release on August 19, Embassy rep
spoke with Nabucco Company spokesman Christian Dolezal who confirmed
that the survey shows a 100 percent overbooking of Nabucco's
projected gas capacity from 2013 to 2030. The survey comprised the
full spectrum of European energy providers, who were unnamed for
reasons of confidentiality. Dolezal said buyers are confident that
Nabucco will find enough gas sources in the region and that
Nabucco's business partners value its "multi-sourcing approach" --
connecting the pipeline to as many possible suppliers as possible in
the Caspian and Middle East.
3. (SBU) Dolezal could not provide a timetable for steps leading to
the final investment decision, which he expects to be taken in late
2008 or early 2009. Three conditions must be met before this
decision:
-- an approved exemption from certain provisions of Regulated Third
Party Access based on Article 22 of the EU Gas Directive;
-- the conclusion of the Intergovernmental Agreement with Turkey;
-- and the execution of an "Open Season" (invitation to shippers to
announce their interest in transportation of gas via Nabucco).
4. (SBU) COMMENT: OMV appears understandably nervous following
repeated delays in Nabucco's formal launching, soaring pipeline
costs, rumors about the South Stream pipeline project, and now the
crisis in Georgia which underscores the need for energy independence
but complicates potential Caspian supplies. Growing potential
demand for Nabucco's gas, as evidenced by the latest survey, is
welcome but not unexpected news. Unless Nabucco shows progress on
the supply side and transit side, OMV may be hard-pressed to
generate good news and manage expectations in the coming months.
END COMMENT.
GIRARD DICARLO