Alternative Projects
Main competitor for the original project was South Stream. In 2006, Gazprom proposed an alternative project, in competition with the Nabucco pipeline, that would involve constructing a second section of the Blue Stream pipeline beneath the Black Sea to Turkey, and extending this up through Bulgaria and Serbia to western Hungary. In 2007, instead the South Stream project through Bulgaria, Serbia, Hungary and Slovenia to Austria and Italy was proposed. On 10 March 2010, CEO of Eni, a partner in South Stream, Paolo Scaroni proposed to merge Nabucco and South Stream projects to "reduce investments, operational costs and increase overall returns". This proposal was rejected by energy minister of Russia Sergei Shmatko saying that "South Stream is more competitive than Nabucco" and that "Nabucco and South Stream are far from being competitors". According to Nobuo Tanaka, former executive director of the International Energy Agency, the Nabucco pipeline would be more effective in increasing Europe's energy security than the South Stream project as it would increase the number of gas suppliers.
Even more important competitor became TANAP which would follow the Nabucco's original route in Turkey. Therefore Nabucco consortium modified the project and sees the modified Nabucco-West as a prolongation of TANAP into Central Europe.
The Trans Adriatic Pipeline and the Interconnector Turkey–Greece–Italy (ITGI) projects has been seen as competing projects. According to Turkish energy minister Taner Yıldız Turkey supported combining Nabucco and Interconnector Turkey–Greece–Italy projects. However, that did not happen and ITGI has fallen from the competition to get Shah Deniz gas. Choice between Nabucco and Trans Adriatic Pipeline is expected by 30 June 2013. It is still possible that both pipelines will be built but not at the same time.
Competitor to Nabucco, and to pipelines generally, is liquefied natural gas. Azerbaijan, Georgia, Romania nad Hungary are developing Azerbaijan–Georgia–Romania Interconnector project, which is proposed to transport Azerbaijani gas to Europe in form of LNG. Increasing availability of LNG from large gas-producing countries in the Middle-East and Africa stresses the economic viability of pipelines.
Read more about this topic: Nabucco Pipeline
Famous quotes containing the words alternative and/or projects:
“It is a secret from nobody that the famous random event is most likely to arise from those parts of the world where the old adage “There is no alternative to victory” retains a high degree of plausibility.”
—Hannah Arendt (1906–1975)
“One of the things that is most striking about the young generation is that they never talk about their own futures, there are no futures for this generation, not any of them and so naturally they never think of them. It is very striking, they do not live in the present they just live, as well as they can, and they do not plan. It is extraordinary that whole populations have no projects for a future, none at all.”
—Gertrude Stein (1874–1946)