VIENNA, Feb. 22 (UPI) -- An assessment by BP that commodity prices are pushing the cost of the Nabucco natural gas pipeline higher is only a guess, the consortium declared.
Europe aims to diversify its energy sector through the Nabucco gas pipeline. The project could draw much of its gas from Azerbaijan and potential suppliers in the Middle East in an effort to break the Russian grip on the regional energy sector.
The Nabucco consortium managing the pipeline from Vienna estimates the 2,000-mile pipeline will cost around $10.7 billion to build. The Guardian newspaper in London, however, said it discovered that estimates from British energy company BP put the bill at around $19 billion.
A Nabucco spokesman told United Press International that its cost estimates were based on its own feasibility studies.
"These BP figures are pure speculations," said Christian Dolezal. "We are currently evaluating the costs and after we have all necessary results of the detailed engineering we are going public."
The European government reached a recent agreement with Baku for Azeri gas to meet some of Nabucco's capacity, which project leaders said was a positive sign. The project is struggling against supply and pricing concerns, though Dolezal suggested all was well.
"Nabucco's focus is clearly to bring new gas to Europe from the Caspian region and the Middle East," he said. "But our pipeline will be open for third party access as also European energy law wants it."
