nabucco gas pipeline the european-turkish project of choice

Nabucco Gas PipelineTHE European-Turkish project of choice

Romania Gas ForumBucharest, June 23, 2011

www.nabucco-pipeline.com

Gas bridge from Asia to Europewww.nabucco-pipeline.com

Status of the Nabucco project - Achievements up to date

Intergovernmental Agreement negotiated, signed & ratified Exemptions from regulated Third Party access obtained, NABUCCO

business model feasible Project Support Agreements with host governments, signed

Engineering / ESIA

Legal / Regulatory

Commercial / Procurement

Project Finance

All engineering design (FEED) works awarded and progressing, planned completion Q2 2012

Environmental & social assessment (ESIA) started, consultations are ongoing, completion planned Q2 2012

Pre-qualification for potential manufacturers of line pipes, bends and valves completed

Transportation agreements / network code / tariff determination for Open Season progressing.

EIB, EBRD & IFC mandated start of formal financing / due diligence Nabucco listed for EEPR funding up to EUR 200 mn First round of talks with export credit agencies finalized


Project Support Agreement signed Kayseri - June 8th, 2011

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PSA signing is a further milestone towards the realisation of the project

• Affirmation of gas sector exemptions and the freedom for transit

• State facilitation through law change or administrative acts

• Protection against discriminatory changes in law and acts, including expropriation

• Approximation of environmental, social and technical standards

• Standards for land right acquisition

• Removal of restrictions to import, export of material, services and the future gas flow

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The gas market in Europe is growing

The market is growing while the domestic production is declining

bcm

y

Source: Eurogas 2010

EU27 gas demand (bcm/y)

EU27 domestic gas production (bcm/y)


Gas Supply is the deal maker !

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VIENNA

BUCHAREST

Istanbul

SOFIA

ANKARA

BUDAPEST

Baumgarten

Erzurum

Iraqi Feeder

Georgian Feeder

AZ 10 to 20 bcmy

Turkm.10 to 20 bcmy

Iraq 10 to 20 bcmy


Combination of existing pipeline connections andexisting consolidated gas hubsNew/growing gas markets

Existing interconnections in SEE/CEE

Potential new interconnections in SEE/CEE

Nabucco will serve the European Market

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Nabucco will supply new gas sources from Central Asia and Middle East to ALL regions in Europe

This target will be achieved by combining physical transport, gas storage services and gas hubs services (i.e. gas swaps)

Nabucco is available to further develop that overall concept with respective downstream TSOs in the various countries


CS at 1st Stage

CS at final Stage

CS at Sivas Tie-In

Off-Take

Fiscal MeteringStation

TURKEY

IRAQ

RUSSIA

SYRIA

Istanbul

GEORGIA

BULGARIA

CYPRUS

Nabucco Gas Pipeline Turkey Route

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• Energy supply security• Role of Turkey as major energy hub• Economic stimulation and growth• Foreign direct investments• Triggering of ancillary infrastructure• Revenues from shareholding and

from future operations


Construction

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Pipeline Diameter: 56 “2.5 Million tons of steelDistance: 3.900 kmInvestment: € 7,9 bn *)Transport capacity: max 31 bcmy*) review work in progress

Iraqi Feeder

Georgian Feeder

Construction phase

Operation phaseDevelopmentphase


Nabucco Gas Pipeline Project will trigger a chain of FIDs

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FIDNabucco

FIDSD II

FIDTrans Caspian and E&P Turkm.

FIDStorageTurkey

FIDStorageProjects

FIDPipelines

downstream

FIDE&P in Middle East


Open for New ShareholdersThe Nabucco consortium is open for newshareholders in case they would deliver an added value in terms of

• Gas supply

• Financing

• Markets

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Open for cooperation with other projectsThe Nabucco consortium is open for any kindof cooperation in case that would deliver an added value to the projectin terms of

• Enhanced gas volumes

• Increased competitveness

• Economies of Scale = lower tariffs


What’s next ? Important steps ahead

• Finalization of the Procurement Strategy and the Contracting Strategy

• Launch of the “Open Season” capacity marketing process

• Start of procurement activities

• Conclusion of first gas transportation agreements

• Finalizing of environmental and social impact assessment

• Acquisition of rights of way and construction permits

• Final Investment Decision and Financial Close

• Start of Construction 2013

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Gas bridge from Asia to Europewww.nabucco-pipeline.com 13

Contact

Nabucco Gas Pipeline International GmbH

Floridotower

Floridsdorfer Haupstraße 1

1210 Vienna, Austria

Thank you for your attention !

Keszeg Sorin TiberiuHead of International Relations – TRANSGAZ SA

Procurist – Nabucco Gas Pipeline International GmbH

nabucco gas pipeline the european-turkish project of choice

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