2. Sources of Natural Gas Supply - European Union
2001
Indigenous Net Imports 45% Production 55 %
2002
Indigenous Net Imports 48% Production 52 %
2030
Indigenous Imports 80% Production 20 %
13%
14%
80%
20%
19%
18%
55%
53%
12%
12% 1% 3%
Import Norway
Import Russia
Import Algeria
Import Others
Indigenous Production
Indigenous Production
Imports
Source: EU-forecast, EU Energy, Issue 86, July 2nd, 2004
Source: Eurogas

3. Forecast of Gas Supply – OECD Europe
Source: „Security of Gas Supply in Open Markets - LNG and power at a turning point“, Edition 2004 (OECD/IEA)

4. New projects / Investment needs
Source: International Energy Agency (2002a).

5. Requirements for realisation of new projects
Investment necessity in transmission networks  US$ 50 to 75 billion in the next decades 1) Investment need in Russia, the Middle East and Africa not included
Prerequisites  attractive investment climate for the natural gas industry in Europe  Necessity for long term stable arrangements with relevant regulatory authority
1) Source: Gas Matters Today, ref. IEA statement

6. Gas Reserves around Europe
Source: OMV Gas GmbH, May 2004

7. Nabucco Gas Pipeline New gas supply route to Europe from
Turkey to Austria
via Bulgaria, Romania and Hungary

8. Project Partners OMV OMV Gas Gmbh, Austria MOL
MOL Natural Gas Transmission Ltd., Hungary
Transgaz
S.N.T.G.N. Transgaz S.A., Romania
Bulgargaz
Bulgargaz EAD, Bulgaria
BOTAS
Botas Petroleum Pipeline Corporation, Turkey

9. Nabucco Gas Pipeline Strategic Goals of Project
Opening a new gas supply corridor for Europe from Middle East and Caspian regions
Raise transit profiles of participating project countries
Contribution to security of supply for partner countries and for Europe as a whole
Strengthening the turntable position of Austrian pipeline grid and the Hub Baumgarten within the European network

10. Nabucco Gas Pipeline Nabucco‘s Market Shares result from . . .
Cost competitiveness vis-a-vis other new projects
Large gas fields in Middle East and Caspian region
Supply diversity – relative to already linked sources
Nabucco partners take-off gas to partially meet their future gas demands

11. Nabucco Gas Pipeline Proposed route
Source: OMV Gas GmbH, May 2004

12. OMV Gas GmbH - Transmission Pipelines through AustriaCZ
34,82
0,72 F
2,89
WAG SK D
Baumgarten
Oberkappel
5,65
Burghausen
PENTA
HAG
0,18
West
0,26
0,19
TAG H
Mengenflüsse im Jahr 2002: (insgesamt rd. 40 Mrd. m³)
Ost West System (HAG, WAG, Penta West) ca. 9,9 Mrd. m³
Nord Süd System (TAG und SOL) ca. 29,6 Mrd. m³
(TAG Loop II Stage III – Erhöhung ab 2007 von derzeit rund 26 Mrd. m³ Erdgas auf 32 Mrd. m³) die bestehenden 2 Leitungen sind dann insgesamt um eine dritte Leitung erweitert. (Gesamtlänge 375 km)
Wir sind im Mittelpunkt der europäischen Gasströme positioniert und unser Gesamtnetz weist eine Länge von rd km auf.
Mittels langfristigen Transitverträgen (ship-or-pay) mit hohen Mengen können die notwendigen Investitionen in ein leistungsfähiges Pipeline-System gesichert werden.
Einerseits gibt es Unternehmen (OEG, TAG, etc.), die daran verdienen, andererseits bringen die steigenden Durchsatzraten economies of scale-Effekte, welche eben auch niedrige Transporttarife auch für die inländischen Kunden garantieren. .
I + II
NABUCCO
2,60
Murfeld
SOL I
Arnoldstein
SLO HR
21,06
1,62

13. Nabucco Gas Pipeline Basic Pipeline Data

14. Results of Market Study
2010
2020
31,0
25,5
10,5
4,5
Source: The Boston Consulting Group, June 2004

15. Nabucco Gas Pipeline Time schedule / Milestones (1) REALIZED
In October 2002 a co-operation agreement was signed by the project partners
- goal is to conduct a feasibility study for constructing the pipeline
1H 2003 saw - the preliminary pipeline route approved and all border crossings fixed - the finalisation of the working program - the application for EU-funding
Interim market study was finalised in 2H 2003 and the technical and environmental studies started
1H 2004 saw first results of the Technical Working Group and initial considerations on legal and tax issues

16. Nabucco Gas Pipeline Time schedule / Milestones (2) REALIZED
Nabucco Company Pipeline Study GmbH, Vienna was found as Joint Venture of the five partners in February Scope of the Company: - coordination of the study phases - coordination/execution of marketing activities - lobbying/negotiations with regulatory authorities - negotiations/marketing of the transportation capacity
Review of market study and refining of business model by end of June 2004
Appointment of ABN Amro as financial advisors to project in July 2004

17. Nabucco Gas Pipeline Time schedule / Milestones (3) TO BE REALIZED
Foreseen steps for the 2H 2004:
Finalisation of all study phases
Final results of Technical Working Group
Final run of business model
Completion of financial feasibility study
Assessment of legal frameworks and tax issues
Negotiations with shippers
 Basis for decision of the project partners how to proceed with the project.
 Signing of Partnership Agreement for construction and operation phases.

18. Nabucco Gas Pipeline Time schedule / Milestones (4) TO BE REALIZED
Finalisation of Feasibility Study End 2004
Detailed Technical Design /
Environmental Assessment Study 2005 – Mid 2006
Construction to begin around 2H 2006
Construction completed and pipeline operational around End 2009