The court in Germany did not exempt Nord Stream 2 from the norms of the EU gas directive

The Supreme Regional Court of Dusseldorf rejected on Wednesday the claim of the Nord Stream 2 operator Nord Stream AG (a subsidiary of Gazprom) against the decision of the Federal Network Agency Bundesnetzagentur not to exempt the pipeline from the EU Gas Directive. writes Bloomberg agency.

“Nord Stream 2 AG has taken note of the court’s decision and will evaluate it. We will inform you about further steps in a timely manner “, – stated Interfax in the company.

On May 15, 2020, the Federal Grid Agency rejected Nord Stream 2 AG’s application for derogation from the EU Gas Directive, which was amended in 2019 specifically to impact Nord Stream 2. Nord Stream 2 AG claims that the company “ is unlawfully discriminated against given that all other pipelines for gas imports into the EU that were invested prior to the entry into force of the new rules are eligible for such an exemption due to the amendment of the Gas Directive. ” “The rejection of Nord Stream 2’s application for an exemption demonstrates the discriminatory impact of the amended EU gas directive,” the company said in a commentary.

As of the effective date of the amendments on May 23, 2019, the gas pipeline was completed in terms of financial support. “Based on the legal framework in force at the time, the company made an investment of several billion euros long before the European Commission announced its plan to amend the EU Gas Directive. In this regard, on June 15, 2020, Nord Stream 2 AG filed an appeal with the Higher Regional Court of Dusseldorf against the decision of the German body – the Federal Network Agency – to refuse to exclude the company from the requirements of the amended EU Gas Directive, ”the pipeline operator notes.

The refusal of the Federal Grid Agency on May 15, 2020 to the exclusion appeal of Nord Stream 2 AG “does not take into account the fundamental principles of investment protection, allowing a narrow interpretation of the term“ completed ”. “The consideration of complaints by Nord Stream 2 AG on amendments in the European Court of Justice (Court of Justice of the EU) in accordance with the Energy Charter Treaty continues,” Nord Stream 2 stressed.

The EU Gas Directive is governed by the relevant national law in Germany. The complaint was filed in relation to section 28b of the Federal Energy Economy Act. Theoretically, the possibility of exemption from regulation is provided for by the legislation of the Federal Republic of Germany, but applies only to gas pipelines that were completed before May 23, 2019.

Among the main provisions of the Gas Directive is the separation of companies supplying gas and companies transporting it. This means that the Nord Stream 2 operator must be independent from Gazprom, and 50% of its throughput capacity must be reserved for alternative suppliers. Exceptions are possible, but only with the approval of the European Commission.

The Nord Stream 2 project involves the construction of two lines of a gas pipeline with a total capacity of 55 billion cubic meters. meters per year from the Russian coast through the Baltic Sea to Germany. A number of EU countries and the United States believe that the project will give Moscow the opportunity to increase pressure on the EU and Ukraine, whose economy is significantly affected by gas transit. By mid-September planned to be completed gas pipeline construction.