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The German Regulator Said That The EU Doesn't Share The Arguments About The Completion Of Nord Stream 2

The German Regulator Said That The EU Doesn't Share The Arguments About The Completion Of Nord Stream 2

No EU country agrees with Nord Stream 2 AG's argument that Nord stream 2 can be considered a completed project by May 23, 2019, and thus exempt from the rules of the updated EU Gas Directive. This was reported on Friday by the Federal Network Agency of Germany.

"All EU countries had the opportunity to study the application of Nord Stream 2 AG together with the applications and make a statement," the regulator said in a statement. According to the Agency, the position of the EU Member States was taken into account when making the decision. "None of the EU States agrees with the arguments of Nord Stream 2 AG regarding the concept of "completion," the Agency noted.

They recalled that the necessary condition for removing the pipeline from the rules of the updated Gas Directive was its implementation by May 23, 2019.

"Since Nord Stream 2 was not fully paved by May 23, 2019, the Federal grid Agency rejected Nord Stream 2 AG's application for exemption [from the rules of the updated EU Gas Directive]," the German Agency said.

The regulator also noted that it approaches" from a construction and technical point of view "to the concept of" completion "of the project, while the applicant understands it from an" economic and functional point of view " and points to investments that were made taking into account the previous legal situation. "Nord Stream 2 AG has the opportunity to appeal the decision in court," the report says.

Earlier, the Federal Grid Agency rejected Nord Stream 2 AG's application to remove Nord stream 2 from the rules of the updated EU Gas Directive.

The Federal Grid Agency of Germany accepted applications from Nord Stream AG and Nord Stream 2 AG to remove the Nord Stream and Nord Stream 2 pipelines from the updated EU Gas Directive in mid-January.

The application from Nord Stream AG for exemption from regulatory requirements under paragraph 28b of the Federal law on the energy sector of Germany was received on December 23, 2019, and from Nord Stream 2 AG on January 10, 2020. The Agency indicated at the time that the procedure should be completed by May 23, 2020.

The revised Gas Directive was agreed in record time at the beginning of last year. The essence of the changes made to it is to extend the rules of the third community energy package to pipelines passing in the EU Maritime economic zone, which oblige the operator to reserve up to 50% of the gas main's capacity for pumping fuel from alternative suppliers.

Although the EC claims that this provision will apply to all offshore gas pipeline projects, it has never hidden that the third energy package itself and the amendments to the EU Gas Directive were developed and implemented to expand the possibility of administrative non-market control by Brussels over Russian gas exports to the member states of the community.

Meanwhile, the question of applying the revised Gas Directive remains open. Although the amendments themselves came into force in June 2018, most EU countries did not have time to take them into account in their national legislation, which opens up wide opportunities for challenging their application through the courts.

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