Shah Deniz II agrees Nabucco funding deal

Funding deal: Shah Deniz II agrees to take stake in Nabucco West

Nabucco Gas Pipeline International

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Bill Lehane

 10 January 2013 15:20 GMT

The Shah Deniz II consortium has agreed in principle to take a 50% non-controlling stake in the Nabucco project, boosting the European pipeline’s chances of becoming a reality.

Talks on the investment were first revealed late last month by Bulgarian Energy Holdings boss Mikhail Andonov, who said then he was confident of a deal being reached.

The Shah Deniz II mega-project in Azerbaijan is operated by BP with Statoil, Socar, Total, Eni, Lukoil, TPAO and NIOC also involved.

The project aims to export 16 billion cubic metres of Azeri natural gas each year, the same capacity as the downsized Nabucco West line.

Under the draft deal, the Shah Deniz II partners will jointly fund the development costs for Nabucco West up to its decision…

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