Germany will not exempt Nord Stream 2 from the EU gas Directive

By | May 1, 2020
Germany will not exempt Nord Stream 2 from the EU gas Directive

The Nord Stream-2 gas pipeline does not meet the prerequisites of the German law on the energy sector, which would allow it to be exempt from regulation.
The Federal grid Agency of Germany decided to reject the application to exempt Nord stream 2 from the requirements of the EU gas Directive. This was reported on Friday, May 1, by Handelsblatt with reference to the regulator’s document sent to participants in the application process and reflecting the position of the Department.

According to the document, the gas pipeline does not meet the prerequisites of the German law on the energy sector, which would allow it to be exempt from regulation.

Joint-stock company 2 the Nord Stream AG submitted an application in early 2020. Theoretically, the possibility of exemption from regulation is provided by the legislation of Germany but applies only to gas pipelines that were completed before May 2019. The Nord Stream 2 gas pipeline was not completed. The joint-stock company’s application made the argument that the concept of “completed” or “finished” should not be interpreted narrowly, but the regulator did not think this was enough.

Experts believe that the owner of Nord Stream 2 will appeal to the higher land court of Dusseldorf. The Federal Network Agency, in turn, informed the publication that after the participants in the process have read the document, a final decision will be made. The review period ends on May 8.

On April 4 last year, the European Parliament adopted an updated Directive (EU law) extending EU gas market rules to pipelines laid from non-EU countries, including Nord Stream 2. Among the main provisions of the Directive is the separation of companies that supply gas and companies that transport it. This means that the operator of Nord Stream 2 should be independent of Gazprom, and 50% of its capacity should be reserved for alternative suppliers. Exceptions are possible, but only with the approval of the European Commission.

Earlier it was reported that the US is preparing new sanctions against Nord Stream-2

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