Major Pipelines Construction "Irrational"

The construction of the Nabucco gas pipeline designed to supply gas to Europe from the Caspian region, is irrational from an economic viewpoint, according to Czech Gas Association (CPU) representatives and Petr Binhack of the Association for International Affairs (AMO).

They had a similar view of the rival South Stream pipeline, led by Russia's Gazprom.

Taking into account the current gas consumption in the EU, there is no need to build high-capacity pipelines, according to the CPU.

Binhack said that the cost of the two projects was rising depending on new source areas and their connection to Nabucco, among others.

Neither of the two projects in question would markedly raise gas imports to Europe, the CPU said.

Nabucco would account for around 5 percent of total European consumption. Russia would use South Stream to reroute supply of gas to Europe, now transported via Ukraine, and total gas imports would not grow significantly either.

CPU president Oldrich Petrzilka said Europe should pay more attention to the construction of terminals in Poland and Croatia aimed to transport liquefied natural gas. This option is less financially demanding, he said.

Read the Full Article from Prague Monitor HERE