The Nabucco Pipeline is a 3,900 km, 56 inch diameter pipeline which will directly connect the Caspian region and the Middle East to the European consumer markets. The pipeline will link the eastern border of Turkey, to Baumgarten in Austria via Bulgaria, Romania and Hungary.
The Project Support Agreements (PSAs) are bilateral, legal agreements specific to and between the Nabucco companies and the government of each transit country.
The main elements of the PSAs are:
- The affirmation of an advantageous regulatory transit regime under European Union and Turkish energy law;
- The protection of the Nabucco Pipeline from potential discriminatory changes in the law; and,
- Support for legislative and administrative actions for the further implementation of the project.
The PSAs also mark a commitment by each government to support the project. Together with the Intergovernmental Agreement, the PSAs are a necessary prerequisite for the successful financing of the project.Article continues below…
Nabucco Gas Pipeline International GmbH Managing Director Reinhardt Mitschek said “The signing of the PSAs is a further vital milestone for our project and cements our partnership with the governments of the transit countries.
“Today also marks the first meeting of the Nabucco Political Committee, which will ensure effective co-ordination between the transit countries. We are satisfied with the unique solid basis of the project and welcome the support the project is receiving from both political and financial quarters.
“Nabucco symbolises the future of global energy cooperation; connecting businesses, consumers, countries, and cultures and will ensure diversity and security of supply for many decades to come,” said Mr Mitschek.
Chairman of the Nabucco Steering Committee and Head of Gas & Power at OMV Werner Auli said “Demand for gas in Europe is expected to rise considerably in the next decade and the Nabucco Pipeline will be the preferred transportation method for gas suppliers in the Caspian region. The negotiations with suppliers are going well and the interest in Nabucco is getting stronger every day.”