Iran’s Planned Nabucco Pipeline

From Der Spiegel, an interesting look at Iran’s desires to use its massive gas reserves and construction of its planned Nabucco pipeline to wield influence over Europe.  As the article notes:

“Iran is planning to leverage its massive gas reserves to increase its influence in Western Europe — by fair means or foul. If selling gas to Europe doesn’t work, then Iran’s Revolutionary Guards may resort to violence in the worst-case scenario.

According to intelligence sources in the Middle East, Iranian leaders are considering making an unusual offer to supply Europe with large quantities of natural gas. The gas would be supplied via the planned Nabucco pipeline, which will run from Azerbaijan to Austria via Turkey.

….Construction work on the Nabucco pipeline is expected to begin in 2009 and to be finished by 2011. The pipeline, which is being built by a consortium headed by the Austrian company OMV, will have a total length of 3,300 kilometers and cost around €5 billion. However the pipeline is controversial within the European Union and Moscow has already made its opposition to the project clear.

The project only makes economic sense if the pipeline is used to full capacity — and Azerbaijan’s natural gas reserves are not sufficient to guarantee that. Hence Iran, which has the world’s second largest natural gas reserves after Russia, is the obvious natural partner for the project….”



This entry was posted on Thursday, November 29th, 2007 at 1:42 pm and is filed under Azerbaijan, Iran, National Oil Company of Iran, Russia.  You can follow any responses to this entry through the RSS 2.0 feed.  You can leave a response, or trackback from your own site. 

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.