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Nord Stream 2: New trouble between operators and Federal Network Agency

2021-10-05T17:32:49.441Z


Can the controversial Baltic Sea gas pipeline Nord Stream 2 go into operation? A dispute is looming between the operating company and German authorities - while the demand for gas continues to rise.


Enlarge image

Starting point of the pipeline near Leningrad (archive picture): when can operations begin?

Photo: Peter Kovalev / imago images / ITAR-TASS

If the operating company of Nord Stream 2 has its way, the first gas should soon flow through the pipeline - but German authorities are not very enthusiastic: The Federal Network Agency addressed clear words to the operating company, which belongs to the Russian gas giant Gazprom - and warns against it to start operations without certification by the German authorities.

That would be a legal violation that could be punished with a fine.

The Federal Network Agency asked the pipeline operator to clarify how he would like to meet the requirements in the event of commissioning.

It cannot be ruled out that Nord Stream 2 might start operations shortly before certification by the authorities.

The operating company has meanwhile announced that it will take legal action in Germany before the Federal Court of Justice.

The dispute takes place against the background of massively rising gas prices.

Fuel is scarce, demand after the height of the Corona crisis is huge and competition for Europe from countries in Asia willing to pay has grown.

Natural gas is to be transported through the pipeline from Russia to Germany and other countries.

According to experts, an opening of the Nord Stream 2 pipeline would hardly provide much relief in terms of prices.

The gas requirement is enormous.

The world's largest natural gas producer, Gazprom, did not want to comment on Tuesday whether it would put the 1200-kilometer tube into operation before it was certified by the Federal Network Agency.

The Bonn authority has until the beginning of January for the examination.

A spokesman for the Federal Network Agency had said to the Reuters news agency that "a company without certification is a violation of the law that can be punished with the imposition of a fine." The operators would have to prove that they met all regulatory requirements in the event of an operation. This applies in particular to questions of non-discriminatory network access and the integration of the connection line into the German market area.

The Federal Ministry of Economics said that part of the certification is also an assessment by the company itself, which is currently being carried out. "Following the submission of the draft decision by the Federal Network Agency, the Federal Network Agency then sends its draft decision to the European Commission, which in turn has two months to comment." A government spokesman told Reuters: "Successful completion of the certification process is a prerequisite for the commercial commissioning of the Pipeline."

In response to the network agency's request, the operators were confident.

"Nord Stream 2 is a fully approved project, built in accordance with the applicable national and international legislation." The company has also received the necessary permits for the operation of the pipeline from the authorities in four EU countries and Russia.

You want to comply with all applicable rules and regulations.

A case for the Federal Court of Justice?

The operating company Nord Stream 2 failed in August before the Düsseldorf Higher Regional Court in an attempt to be exempted from regulation in Germany.

She is now going to the Federal Court of Justice because she would have to submit to EU law for the part of the gas pipeline that runs in Germany.

This is a thorn in the side of the operators because they have to separate transport and sales.

The opponents of the multi-billion dollar double tube include the USA.

They argue that this leads to Europe becoming heavily dependent on Russian gas supplies.

EU Commission President Ursula von der Leyen announced that the EU's leaders would also deal with the gas supply situation this month.

It is also a question of whether Europe should build up a strategic reserve.

The EU is 90 percent dependent on imports.

While the demand for gas is increasing worldwide, production is not increasing to the same extent.

mic / Reuters

Source: spiegel

All business articles on 2021-10-05

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