Existing/Possible Supply Routes to Nabucco Gas Pipeline

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1 Nabucco Gas Pipeline Enabling Cross Border Gas Flows to Europe via Turkey Johann Gallistl Nabucco Gas Pipeline International GmbH Gas Bridge between Caspian Region / Middle East/Egypt and Europe 1 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved Existing/Possible Supply Routes to Nabucco Gas Pipeline Ukraine Russia Kazakhstan Austria Nabucco Blue Stream-I Trans-Caspian Kazakh Gas Caspian Gas Greece Turkey Nabucco Trans-Caspian Turkmen Gas Arab Gas P/L Phase-III TerGas Iraqi Gas (ITGEP) Iranian Gas Egypt Egyptian Gas Arab Gas P/L 2 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved Map: Google Map

2 Construction Construction Step Step I I Phase 1 Phase 2 O p e r a O t p i e o r na t i o n Constr. Step II II 3 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved New gas transport corridor Pioneer Project VIENNA Pipeline Pipeline Diameter: Diameter: Distance: Million tons 3,300 of km steel BUDAPEST Distance: Investment: 3,300 ~ 5 bill. km Investment: Transport capacity: ~ 7.9 bill. BUCHAREST Transport max. 31 bcmy capacity: max. 31 bcmy SOFIA ISTANBUL ANKARA 4 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved

3 Nabucco as a multi entry-exit-pipeline system Nabucco will reduce market risks by diversification Austria and Western Europe European gas market: 500 to 700 bcmy market Hungary Romania Nabucco will link regional markets and national pipeline grids Gas traders / wholesalers will start trading activities providing inter alia supply security to the related markets in Turkey and in Europe Bulgaria Turkish gas market: 40 to 70 bcmy market Turkey 5 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved Market Effects for Turkey and for Europe Multi sourcing approach increase Security of Supply An alternative gas transport route will mitigate risk of transit and increase the interconnectivity, especially in SEE Third Party Access will strengthen competition The acquisition of new gas sources will enhance liquidity of the market Physical flows and gas swaps between traders together with flexibility services will provide a variety of business opportunities for all European Countries 6 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved

4 Effects for producers in Central Asia and Middle East A broader export portfolio will increase independence of producers A bigger number of gas buyers will increase competition Enhanced business activities between Europe, Turkey and gas producers will provide opportunities for investments for all involved The exchange of know how between all players in the gas chain will increase efficiency The built up of long term contracts will provide positive effects in the overall industry and the state economies will benefit 7 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved Results reached so far EU funding for feasibility study and pre-engineering Application and ongoing approval process for Exemption Owner s Engineer engaged, December 2007 Implementation of RWE as 6th Shareholder, February 2008 Execution of Market Sounding, ng June/July 2008 Signing of the Intergovernmental Agreement, July Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved

5 Results of the Market Survey 54 shippers have been contacted by NIC 16 shippers gave a concrete answer on a non-binding basis about their interest in capacities CONCLUSIONS: Capacity is much over the planned design capacity of 31 bcm/y (for the HIGH CASE). Demand pattern is focusing on start-up period of Nabucco (essential for financing). Result - Market Survey Result - Market Survey requested capacity in total compared to planned maximum technical transportation capacity in bcm/y potential shippers maximum technical capacity (31 bcm/y scenario) 9 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved Intergovernmental Agreement stable legal framework Political agreement among the Nabucco transit countries, Austria, Hungary, Romania, Bulgaria and Turkey signed in Ankara July 13 th 2009 Guarantees full political support. Agreement is valid for 50 years Ensures equal legal conditions for gas transit throughout the entire Nabucco pipeline system Lays down transport tariff methodology and rules for network access Establishes political committee comprising representatives of all signatory countries to support development of the project 10 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved

6 Political Support is of utmost importance Establishment of the Legal Framework / Conclusion of the PSA Final Approval of the Exemption Engineering Environmental and Social Impact Assessment Marketing of Transport Capacity / Transport Contracts Financing/ Loan Agreements Final Investment Decision 11 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved Contact Nabucco Gas Pipeline International GmbH floridotower Floridsdorfer Haupstraße Vienna, Austria Johann Gallistl Prokurist Tel Fax: johann.gallistl@nabucco-pipeline.com 12 Copyright 2009 by Nabucco Gas Pipeline Int. GmbH, all rights reserved

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