On June 15, Nord Stream 2 AG, the operator of Nord stream 2, filed an appeal to the Supreme regional court of Duesseldorf against the decision of the Federal Grid Agency of Germany that refused to exempt the pipeline from the requirements of the updated EU Gas Directive.
The German regulator believes that Nord stream 2 did not meet the “completion of the project” criterion by May 23, 2019, which Nord Stream 2 does not agree with.
The German authorities announced their support for the Nord stream-2 project”
The company insists that by 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 several billion euros long before the EC announced its plan to change the Gas Directive.
The gas Directive limits by 50% the volume of gas pumping for owners of transport infrastructure, in this case, the gas pipeline. Russian natural gas pipelines are exported by Gazprom, which is also the owner of Nord stream 2. According to the rules of the Gas Directive, for this reason, the Russian company will be able to fill the gas pipeline only half.
In Nord Stream 2, international legal experts argue 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.
In addition, it would be contrary to the constitutional guarantees of the German Basic law.
“Rejection of the Nord Stream 2 application (for exemption from the Gas Directive) shows the discriminatory effect of the amended EU Gas Directive, ” the company said in a statement.
Nord Stream 2 has previously filed a claim to cancel the amendments to the Gas Directive in the General court of the EU and is conducting arbitration proceedings under the Energy Charter Treaty.
The company emphasizes that Nord stream 2 has received all the necessary permits and is being implemented in accordance with applicable national and international legislation. The operation of the Nord stream 2 gas pipeline will be carried out in accordance with the requirements of all applicable laws.