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Borusan says Nabucco pipes to cost $4 billion
Nabucco construction seen in 2013 at the latest.
October 14, 2010 12:58 by Reuters
Turkish pipe and tube maker Borusan Mannesman , which hopes to supply the planned Nabucco natural gas pipeline, expects the pipes for the project to cost about $4 billion, based on current prices.
Chairman Bulent Demircioglu told Reuters he expects the project to use a total 2.8 million tonnes of steel pipe.
Turkish producers have enough capacity to supply 90 percent of Nobucco’s pipe needs, he said, and Borusan Mannesmann alone has annual capacity of 250,000 tonnes.
Demircioglu said in an interview he expected construction on Nabucco to begin at the end of next year at the earliest or the start of 2013 at the latest.
The $11 billion Nabucco project was supposed to begin construction in 2011. It aims to transport 31 billion cubic metres of gas to Europe each year after it opens.
Nabucco’s partners — Austria’s OMV , Hungary’s MOL , Romania’s Transgaz , Bulgaria’s Bulgargaz, Turkey’s Botas and Germany’s RWE — want to bring gas from the Caspian Sea and Middle East to Europe to reduce its reliance on Russia for fuel.
Separately, Demircioglu said Borusan Mannesmann may invest in production facilities in Iraq and Algeria as it seeks to grow. The Turkish market will only expand about 2 to 3 percent a year, while neighbouring countries will see more rapid growth, he said.
The Istanbul-based company expects revenue of between $600 million and $650 million this year, Demircioglu said. That may increase to $700 million next year, if steel prices rise 5 percent next year, he said. (Reporting by Evrim Ergin, writing by Ayla Jean Yackley; Editing by Hans Peters)