Caspian Basin: Austrian Energy Exec Optimistic About Nabucco Pipeline

The head of Austrian oil giant OMV, Wolfgang Ruttenstorfer, insists that the Nabucco pipeline is a sure thing and a top priority for his company.

Speaking in Vienna on December 17, Ruttenstorfer said the proposed pipeline's "chances have never been better" and that he expects positive news in 2009.

"In terms of cost estimation, we still proceed from 7.9 billion euros ($10.46 billion). But the costs might also fall because of sinking steel prices. But we can safely say 'the financing of Nabucco will not fail,'" Austrian daily Der Standard quoted him as saying.

He suggested that, at the present stage, an intergovernmental agreement with Turkmenistan would be a critical element in ensuring that the Nabucco route becomes a reality. But he maintained Europe was not bound to supplies from the authoritarian state.

"Our priority is Caspian gas, but Iran has the second largest gas reserves of the world, one shouldn't forget." However the OMV boss admitted gas imports from the Islamic Republic was a politically sensitive issue. The Nabucco pipeline is designed to carry Caspian and Middle Eastern gas from Turkey to OMV's Austrian gas hub via Bulgaria, Romania and Hungary. [For background see the Eurasia Insight archive].