Hungary's MOL Thinks Nabucco Company Unsustainable

The consortium implementing the Nabucco natural-gas pipeline isn't sustainable in its current state, the Hungarian member of the group, MOL Nyrt. (MOL.BU), told Dow Jones Newswires in an emailed statement Tuesday.

The company's comment comes after it already indicated it has concerns about the future of the project and after Hungarian Prime Mister Viktor Orban Monday outright stated that MOL is ready to abandon the project altogether.

"MOL Group confirms that these concerns still exist and there hasn't been any satisfactory solution from Nabucco International Company so far," MOL said. "Therefore MOL has indicated towards NIC shareholders, and to the Hungarian government, that it doesn't consider the further financing of Nabucco International Company sustainable and therefore it did not approve the 2012 annual budget of NIC."

It also said that it is fully committed to further strengthen the region's energy security and that a reconsidered Nabucco could eventually be part of the south "corridor concept," delivering gas to central Europe.

-By Veronika Gulyas and Gergo Racz, Dow Jones Newswires; [phone]; [e-mail]