BP-led Shah Deniz Selects Nabucco West as 2nd Caspian Pipeline Option

By Alexis Flynn

LONDON--BP PLC (BP) and its partners in the Shah Deniz gas field have selected the Nabucco West pipeline concept over the BP-backed South East Europe Pipeline as one of the two final options to be considered when the consortium decides on a route to pipe Caspian gas to Europe next year.

Nabucco West will now be paired off in a two-horse race with the Trans-Adriatic Pipeline, known as TAP, for the right to export gas from the giant Shah Deniz development offshore Azerbaijan. A final decision is due in 2013.

"This represents another important milestone in the development of Shah Deniz Stage 2 and the transportation of gas resources from the Caspian to Europe," said BP regional head, Rashid Javanshir.

Nabucco is a joint venture involving Germany's RWE AG (RWE.XE), Austrian oil firm OMV AG (OMV.VI) and Hungary's Mol Nyrt. (MOL.BU). Other partners include Bulgargaz EAD, Transgaz SA and Boru Hatlari ile Petrol Tasima AS. TAP is planned by EGL AG, Statoil ASA (STO) and E.ON Ruhrgas AG.

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