Nord Stream-2 operator appealed the decision of German regulator

The Nord Stream-2 operator, Nord Stream-2 AG, has appealed to the Dusseldorf court for a decision by the German Federal Network Agency, which refused to release the project from the requirements of the updated EU gas directive, the company told the reporters.

Nord Stream-2 operator appealed the decision of German regulator

“On June 15, Nord Stream-2 appealed against the decision of the Federal Network Agency of Germany to the Düsseldorf Supreme Regional Court. Nord Stream 2 AG insists that the pipeline was completed on the actual date of May 23, 2019 in terms of economic functionality. Based on the then existing company’s legal framework, it made irrevocable investments of several billion euros long before the European Commission announced its plan to amend the Gas Directive”, – the press service said.

“International legal experts have confirmed that narrowing the definition of completion of the project to the conclusion on the physical construction of the pipeline would violate the protection of legitimate expectations and other fundamental rights in the EU law. It would also be contrary to the constitutional guarantees of the German Basic Law”, – the statement said.

The company emphasized that the rejection of the project application shows the discriminatory effect of the amended gas directive and reminded that Nord Stream 2 AG had previously filed a lawsuit to repeal the amendments to the EU General Court and was conducting arbitration under the Energy Charter agreement.

Denmark, which tried to tighten the construction of the gas pipeline as much as possible, found a reason for another delay.

In mid-May, German Federal Network Agency refused to exempt Nord Stream-2 from the requirements of the updated EU gas directive. According to the regulator’s decision, they did not manage to complete the gas pipeline by May 23, 2019, as a result, it falls under the amendments to the norms of the third energy package of the European Union that have entered into force. Among other things, the directive requires that the pipeline entering the EU territory either be partially filled by an alternative supplier, or part of it running through the territory of the union belongs to a third company.

Nord Stream-2 involves the construction of two gas pipelines with a total capacity of 55 billion cubic meters of gas per year from the Russian coast through the Baltic Sea to Germany. The United States is actively opposing the project, promoting its liquefied natural gas in the EU, as well as Ukraine and several European countries. The states imposed sanctions on the project in December, requiring construction companies to stop construction immediately.

Swiss Allseas almost immediately announced the suspension of the gas pipeline.


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