France's GDF Suez Buys 9% Stake in Nabucco West

Energy | May 28, 2013, Tuesday // 12:46|  views

Photo by Nabucco Gas Pipeline International GmbH

France's GDF Suez has agreed to buy around 9% in the Nabucco West gas pipeline project from Austria's OMV.

Nabucco Gas Pipeline International GmbH issued a statement Tuesday welcoming the announcement that the French energy group had concluded a Share Purchase Agreement with OMV in Vienna earlier the same day.

As a result of the deal, GDF Suez will join OMV (Austria), FGSZ (Hungary), Transgaz (Romania), BEH (Bulgaria) and BOTAS (Turkey) as a shareholder in Nabucco.

The deal is to be finalized by the second half of 2013.

Reinhard Mitschek, CEO of Nabucco Gas Pipeline International GmbH commented: "The pan-European significance of Nabucco is considerably reinforced with the agreement signed today. The entry of GDF Suez strengthens the shareholder structure of Nabucco significantly and paves the way to the French market. The industry expertise of GDF Suez as the operator of the largest gas transport network in Europe and their status as the second-largest buyer of natural gas in Europe are of immense advantage to the project. GDF Suez is already very active in the Nabucco countries."

"We welcome the entry of GDF Suez into the project. A broad shareholder structure composed of European industry leaders is an important step for a strong financing structure," said Frank Siebert, CFO of Nabucco Gas Pipeline International GmbH.

In April, German utility RWE sold a 17% stake in Nabucco to OMV.

The 1300km Nabucco West pipeline is the shorter version of the 4000km Nabucco gas pipeline project.

Nabucco West is to transport 10-23 billion cubic metres of gas from the Bulgarian-Turkish border to Austria.

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Tags: Nabucco, Nabucco Gas Pipeline International GmbH, Reinhard Mitschek, Nabucco West


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