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Nord Stream 2 Operator Can Challenge The Decision Of The German Regulator On The Gas Directive

Nord Stream 2 Operator Can Challenge The Decision Of The German Regulator On The Gas Directive

Nord Stream 2 AG, the operator of the Nord Stream 2 project, does not rule out appealing the decision of the Federal grid Agency of Germany, which refused to withdraw the gas pipeline from the restrictions set by the EU Gas Directive, according to press service of Nord Stream 2 AG.

The German regulator explained its decision by the non-compliance of Nord Stream 2 AG's request with the current regulations, according to which only gas pipelines whose construction was completed by may 23, 2019 can qualify for exemption from restrictions.

"Nord Stream 2 AG does not agree with this decision and claims that as of the actual date of may 23, 2019, the pipeline was completed in terms of economic functionality. Based on the legal framework in force at the time, the company made a non - refundable investment of €1 billion long before the EC announced its plan to change the Gas Directive," the company stressed.

According to Nord Stream 2 AG, international legal experts have confirmed that "narrowing the definition of' project completion 'to a conclusion on the physical construction of a gas pipeline would violate the protection of legitimate expectations and other fundamental rights in EU law", as well as contradict the constitutional guarantees of the German Basic Law.

The company stated that Nord Stream 2 is a project that has received all the necessary permits and is being implemented, according to applicable national and international legislation.

"The ongoing processes (on derogation, proceedings in the EU court of justice, arbitration under the Energy Charter Treaty) are designed to clarify the rules that will apply to the operation of the Nord Stream 2 gas pipeline. The need for such clarification has arisen as a result of the adoption of the illegally discriminatory project "Northern stream - 2" amendments to the Gas Directive and due to the lack of impact assessment, which is usually a mandatory procedure prior to the introduction of new legislation the European Commission", reminded in the company.

"We are waiting to receive an official decision, then evaluate it and consider further actions to protect our rights, including appealing this decision in the German courts. An appeal is possible within one month after the decision is made," Nord Stream 2 AG reported.

The company also stressed that the rejection of its application shows "the discriminatory effect of the amended EU Gas Directive". The decision will not affect the completion of the pipeline.

Gazprom stated that the pipeline will be launched at the end of 2020. Russian Energy Minister Alexander Novak called the ship "Akademik Chersky" a possible developer of the Nord Stream 2.

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