RWE Increases Speculation Over Its Withdrawal From Nabucco

Germany’s RWE announced in a press release on 13 May that “in light of changed conditions brought about by new pipeline projects, we are reviewing whether our commercial and strategic goals regarding Nabucco continue to be preserved.” The announcement adds to growing speculation over prospects for the proposed Nabucco pipeline, coming less than a month after Hungary’s MOL announced its decision to quit the Nabucco consortium (MEES, 7 May) and five months after RWE CEO Juergen Grossmann publicly questioned the viability of the project (MEES, 23 January). Nabucco is one of four original projects competing to deliver gas from Azerbaijan’s Shah Deniz Stage 2 field development to Europe, one of which has already been eliminated (MEES, 27 February).

The RWE announcement was made three days before the 16 May deadline for the South East Europe Pipeline (SEEP) and Nabucco West consortia to submit their final proposals to the Shah Deniz Stage 2 development partners, increasing speculation that Nabucco is losing ground to the BP-led SEEP project. RWE’s statement clarified that the company has not taken any final decision on whether to stay in the Nabucco project: “We continue to be convinced that the original conception for Nabucco remains the best solution for all stakeholders – customers, suppliers and network operators.” Germany’s Der Spiegel reported last week that RWE executives are preparing the German government and the EC for their eventual withdrawal from Nabucco.

© Copyright MEES 2012.