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Nabucco director sees renewed MOL commitment to pipeline

The managing director of Nabucco Gas Pipeline International on Monday said he is certain Hungarian oil and gas company MOL will remain committed to the project once a favorable decision is taken on the Shah Deniz II gas field in the Caspian Sea region.

Speaking with journalists in Vienna, Reinhard Mitschek said Nabucco Gas Pipeline International is "very close" to an agreement with the Shah Deniz consortium and sees a deal being struck by the end of October.

He said MOL's share in the Nabucco consortium has dropped by about 2% in the last few weeks, but added that he is certain MOL will remain a committed partner after a positive decision from the Shah Deniz consortium.

MOL said in the spring that the continued financing of the pipeline was unsustainable and declined to approve the project company's budget for this year. But the company said in June that the Shah Deniz consortium's decision to pick the Nabucco pipeline as a possible delivery route "could end a long period of uncertainties arising from worries about the execution of the original Nabucco plan".

The Nabucco pipeline is to bring gas from Central Asia to Europe, reducing the region's energy dependence on Russia.