RWE still committed to Nabucco

Aug. 11, 2011 at 6:25 AM
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ESSEN, Germany, Aug. 11 (UPI) -- Despite suffering economic losses from a decision to phase out nuclear power, German energy company RWE said it was committed to the Nabucco gas pipeline.

RWE Chief Executive Officer Juergen Grossman announced in the company's earnings report that a decision by the German government to phase out nuclear energy "led to substantial financial burdens."

German Chancellor Angela Merkel said in the wake of the March earthquake and tsunami that crippled Japan's nuclear energy sector that her country would do away with nuclear power.

RWE added that its planned investments would likely suffer as a result of the economic loss.

RWE is one of the members of the consortium overseeing the planned Nabucco natural gas pipeline for Europe.

The project is already delayed and could cost more than $11 billion to build. Europe sees it as a way to break Russia's grip on the energy sector, though commitments from potential suppliers in the Middle East and Central Asia are slow to emerge.

Despite the financial loss, and a recent agreement with Russian gas company Gazprom, Grossman was quoted by The Wall Street Journal as saying Nabucco was on solid ground.

"We will continue to pursue the Nabucco project," he was quoted as saying.

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