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Analysis: Oil and Gas Pipeline Watch

By BEN LANDO, UPI Energy Editor

Nabucco pipeline decision not till early 2008

Austria's OMV said the "final decision" to move forward on a major project to supply non-Russian gas to Europe will be delayed until early next year.

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At issue is whether Iranian gas will be needed to make the project commercially viable. Iran has the second-largest reserves in the world, after Russia.

Europe relies on Russia for a large portion of its gas but wants to diversify over fears the gas will be used by Moscow for political or economic leverage.

Werner Auli, in charge of gas for OMV, said the firm and its partners -- MOL of Hungary, Transgaz of Romania, Bulgargaz of Bulgaria and Turkey's Botas -- say Iran isn't needed, the Tehran Times reports.

"We know the chicken-before-the-egg problem," Auli said. "But we're practically fully booked already now."

The European Commission is counting on the Caspian Sea for the bulk of the feed for the pipeline.

The project is also considering RWE of Germany or Gaz de France as a sixth partner.


Pinhole leak cause of Canada-U.S. pipeline blast

Enbridge Energy, the operator of the Saskatchewan to Chicago oil pipeline, said the blast that killed two workers last week was due to a faulty repair.

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Three weeks ago repairs started at the section of the pipeline that was the source of fire, The Canadian Press reports.

The fire took place northwest of Minneapolis on the pipeline that feeds around 16 percent of U.S. imports. The United States imports more than 60 percent of the oil it consumes, and Canada is its largest supplier.

The pipeline has since been repaired and restarted.


Sinopec, ConocoPhillips among bidders for Alaska-Canada-U.S. gas pipeline

China Petroleum Co. is among the bidders to send Alaska's massive northern slope natural gas to consumers in Canada and the United States.

The Shanghai Daily newspaper reports Sinopec submitted a bid to the government of Alaska, which is in the process of developing the natural gas from the areas that have long provided much of U.S. oil.

TransCanada Corp. and ConocoPhillips have also put in bids.

The deadline was Nov. 30 to apply for the project, which could cost up to $42 billion and pipe 4 billion cubic feet per day, the Financial Times reports.

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