Will Nabucco be hit by new LNG MoUs?
A memorandum of understanding among Azerbaijan, Georgia and Romania concerning liquefied natural gas could strike a blow to the Nabucco pipeline, analysts said.
Officials from Azerbaijan, Georgia and Romania met Tuesday in Bucharest to sign a memorandum of cooperation for the construction of gas processing and transit centers for Azeri gas on the Black Sea coast. A project outlined in the measure calls for the construction of LNG terminals in Georgia and Romania.
Romanian Economy Minister Adriean Videanu said the LNG project was a quick way to move Caspian gas to European markets, the online Oil & Gas Journal reports.
"From my point of view this is the fastest and one of the most efficient projects ... to bring Caspian gas to the European Union," he said.
Analysis from IHS Global Insight said the LNG project "has gained momentum" because of lingering gas price disputes between Azerbaijan and Turkey. This, the report said, could "torpedo" the Nabucco pipeline.
Europe aims to break the Russian stranglehold on the regional sector by moving Central Asian and Middle Eastern gas to market through Nabucco. Potential suppliers, however, are slow to commit.
Videanu, however, downplayed the concerns, saying "all" transit projects for Europe "are complementary."