Nabucco Says European Gas Demand Outstrips Pipeline's Capacity

By Matthias Wabl

Aug. 18 (Bloomberg) -- Nabucco, the OMV AG-led venture building a pipeline between Central Asia and western Europe, said a survey among potential customers showed demand for natural gas outstrips capacity on the link.

``Nabucco capacities are more than 100 percent overbooked by potential shippers from day one in 2013 on a long-term basis,'' Vienna-based Nabucco said today in an e-mailed statement. The survey indicated demand for gas from Central Asia and the Middle East is ``strong,'' it said.

The 3,300-kilometer (2,050-mile) pipeline, backed by the European Union, will bring gas from the Caspian region via Turkey to Austria and western Europe by 2013. The partners plan to start a binding bidding process for capacity on the 7.9 billion-euro ($11.7 billion) link as soon as European countries adopt the necessary laws, Nabucco said.

The Nabucco group includes OMV; Budapest-based Mol Nyrt.; Germany's RWE AG; Bulgaria's Bulgargaz EAD; Romania's Transgaz SA; and Ankara-based Botas.

To contact the reporter on this story: Matthias Wabl in Vienna at mwabl@bloomberg.net