• 3 minutes Marine based energy generation
  • 5 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Which producers will shut in first?
  • 1 hour A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 13 mins The GREAT OPEC+ Agreement
  • 4 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 2 hours Trumps Oil Industry....
  • 11 hours Saudis to cut 4mm bbls. What a joke.
  • 10 hours Saudi Arabia Is Buying Up European Oil Majors
  • 10 mins Chinese Communist Party
  • 8 hours Trump will be holding back funds that were going to W.H.O. Good move
  • 11 hours Occidental hypocrisy
  • 1 hour Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 9 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 6 hours Corona Price Tag
  • 14 hours Sharp real pure true hard working roughneck needing work..
  • 15 hours Death Match: Climate Change vs. Coronavirus

Russia’s South Stream may have Defeated its Nabucco Rival

Russia’s South Stream may have Defeated its Nabucco Rival

The Nabucco Pipeline was supposed to give Europe an alternative source of natural gas and free eastern European members from the oppression of Russia; yet Russia’s South Stream Pipeline, which follows the same route, may result in the abandonment of Nabucco. Instead the Azerbaijan and its partner, BP, may decide to build the Trans Adriatic Pipeline (TAP) to supply natural gas to southern Europe.

The Nabucco Pipeline was originally planned to be 3,900km long, stretching from Azerbaijan, across Turkey, and then up through the Balkans, and then onto Austria. This was then reduced to a 1,300km pipeline after it was decided to link it to an existing pipe in Turkey.

The TAP will only be 800km long, as it only stretches from Azerbaijan, across Turkey and Greece, and then under the sea to southern Italy.

Related article: U.S. Shale Boom Not Enough to Remove the Threat of Peak Oil

Nabucco is expected to cost $8 billion, and TAP will be $500 million less, although the Nabucco will allow the natural gas access to more markets.

Eastern Europe will benefit greatly from Nabucco as it will offer an alternative to Russian gas that is often supplied at high costs; but Italy will benefit from TAP as it looks for alternative supplies to its politically unstable North African sources.

Nabucco will help poor eastern bloc economies such as Bulgaria and Romania with the infrastructure investments that will be made in the countries; yet TAP will provide those same investment benefits to Greece and Italy whose economies (especially Greece’s) have been dragging the EU into recession. Germany will be especially happy if Greece receives boosts to its economy enough to no longer need future bailouts. There is also the fact that Russia’s South Stream pipe will bring the same economic benefits as Nabucco, although without the relief from reliance on Russian gas.

The decision over which pipeline to build will be made in June; although both offer good, and similar cases.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage




Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News