Case Study 1
Energy & Infrastructure Sector: Nabucco gas pipeline project
We were appointed in 2007 and continue to advise the project company on this new gas pipeline that connects the Caspian region, Middle East and Egypt with the Central and Western European gas markets via Turkey, Bulgaria, Romania and Hungary. The pipeline length will be approximately 3,900 km, starting at the Georgian/Turkish border and leading to Baumgarten in Austria. Construction starts at the end of 2013 and the first gas is predicted to flow by the end of 2017. The sponsors of this €7.9bn project include OMV, RWE, MOL, Transgas, Botas and Bulgargaz.
The strategic objectives of this project are to:
•open a new gas supply corridor for Europe and for the countries involved in the project, delivering very cost-effective gas sources
•raise the transit profile of the participating countries along the route
•contribute to the security of supply for all partner countries, and also for Europe as a whole
•strengthen the role of the gas pipeline grids of all Nabucco partners in connection with the European gas network.
This project has already drawn on a wide range of expertise across the firm. Our lawyers were involved in the negotiation of agreements with the respective governments, and we are now acting as advisors on arrangements to finance the project. This includes commercial arrangements for the sale of capacity in the pipeline to third parties.
Strategically important to the EU, this project raises a range of EU law issues which have called for the involvement of specialist lawyers in London and Brussels.
More information on this project can be found at http://www.nabucco-pipeline.com/