New Europe: The ghost pipelines of Nabucco, South Stream
Aug. 30, 2010, 12:01 a.m. |
Both the West-backed Nabucco (green) and the Russian-back South Stream gas pipelines(red), both bypassing Ukraine as a transit route, look less economically feasible than ever to build, some analysts say.
Kostis Geropoulos writes: The Nabucco consortium has shelved a plan to source gas from Iran to Europe via the EU-backed pipeline, a move that makes the project even less likely. “Frankly, the only way the whole pipeline made sense was if it could eventually plug into the Iranian reserves. By excluding that, which I guess they had to do for political reasons because of the backlash to the Iranian nuclear program, definitely makes the project less viable,” Chris Weafer, chief strategist at Moscow-based UralSib bank, told New Europe by phone on 25 August, two days after the consortium for the multibillion venture announced Nabucco will no longer link to Iran. Nabucco will now include two supply lines at Turkey's borders with Georgia and Iraq. Read the story here.