Questions Raised About Hungary's Participation In Nabucco Pipeline Project

The projected path of the Nabucco pipeline, between the Caspian Sea and Western Europe.

Hungarian Prime Minister Viktor Orban has raised questions about the Hungarian oil and gas company MOL's further participation in the European Union-backed Nabucco pipeline project to bring Caspian gas to the European Union.

Orban said on April 23 that "Nabucco is in trouble."

MOL was quoted as saying in an e-mail that there are still "many uncertainties around the Nabucco project that would be hard to ignore," but did not state whether it would continue or abandon the project.

A statement later released by Nabucco through the Grayling public relations firm said Nabucco had "not had any indication" that MOL is leaving the project.

The Nabucco project aims to bring gas from the Caspian region and possibly Middle East countries to Europe.

The 3,900-kilometer pipeline would run from the Georgian border to Austria, carrying some 31 billion cubic meters of gas annually.

But after years of discussions and international conferences, construction still has not started and Nabucco representatives have not signed any contracts with potential supplier countries.

Russia's rival South Stream project will carry twice the gas Nabucco would and construction is due to start at the end of this year.

MOL was one of six partners in the project.

Based on reporting by Bloomberg and Interfax