The pipeline length is to be 3,300 km and the project is due to be completed in 2013, starting at the Georgian/Turkish and/or Iranian/Turkish border respectively, leading to Baumgarten in Austria. It connects the Caspian region, Middle East and Egypt via Turkey, Bulgaria, Romania, Hungary with Austria and further on with the Central and Western European gas markets and has been designed to transport a maximum amount of 31 bcm/y. Estimated investment costs has risen to $12.3 billion and the project is aimed at enhancing Europe’s energy security and reducing its dependence on Russian gas supplies.

It is at serious risk from the South Stream pipeline project and needs to retain strong EU backing on the grounds of security of supply in the hope of signing up additional users. Nabucco will also enable Turkmenistan to sell directly to Europe. Currently it is selling 50 out of the 70 bcm it supplies annually via Gazprom that sells it on at a more expensive price. The gas from Central Asia to Nabucco may be delivered via the planned Tran-Caspian pipeline. The Trans-Caspian gas pipeline will extend to Azerbaijan, where the gas reserves are expected to comprise 6trln cu m, from the Caspian coast of Kazakhstan or Turkmenistan. The Mediterranean gas from Azerbaijan to the end of the Nabucco pipeline is delivered via the currently existing South Caucasus gas pipeline (Baku-Tbilisi-Erzurum). In June 2008 Nabucco received its first supply order, namely from Bulgaria to Azerbaijan for the supply of 1 bcm of natural gas p.a. The crisis between Russia and Georgia however that erupted in the summer of 2008 could be the final blow to the pipeline since entities will now be loath to finance the project and put gas in it. The energy companies in Nabucco are OMV of Austria, Bulgargaz of Bulgaria, RWE of Germany, MOL of Hungary, Transgaz of Romania and Botas of Turkey.

Both Nabucco and South Stream pipelines would deliver gas to Europe and both are political. South Stream keeps Gazprom in control while Nabucco seeks to diversify supply so as to lessen European dependence on Russian gas. South Stream could be twice as expensive as Nabucco, which in turn, may face difficulty securing supply to fill the pipe.