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German energy regulator suspends Nord Stream 2 certification, sets demands -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : A large-diameter pipe seen with the logo of Nord Stream 2 is located at Chelyabinsk Pipe Roller Plant. It’s owned by ChelPipe group in Chelyabinsk (Russia), February 26, 2020. REUTERS/Maxim Shemetov

FRANKFURT, Reuters -The German energy regulator announced Tuesday that it had stopped the certification of the Nord Stream 2 pipeline for Russian gas pumping. It also said that the Swiss-based consortium must form a German company to obtain an operating license.

The United States and several European countries have opposed the pipeline, claiming that it would make Europe more dependent on Russian gas. However, rising gas prices due to increased global demand in Europe has fueled some requests for additional Russian supplies.

Bundesnetzagentur said that although the Swiss company did not want to become German, it had created a German-law subsidiary in order to manage the section of the pipeline which is located on German territory.

According to the regulator, certification will not be given for Nord Stream 2 if it is in compliance with German law.

A transfer of large assets to Germany and staffing budgets to German subsidiaries was required for the application to be approved by the regulator.

The regulator stated that once these requirements were satisfied, it would continue to evaluate the submission for the rest of the four-month period which ends in January.

Nord Stream 2 confirmed that it had been notified but stated: “We aren’t in a position to comment about the details of this procedure, its duration or impacts on the timing for the start of the pipe operations.”

On Monday, Naftogaz Ukraine and GTSOU received notices that they were to be part of the German certification process for the pipeline.

Ukraine is opposed to the pipeline. If gas from Russia passes through pipelines located on Ukrainian territory, it will result in a loss of revenue.

Naftogaz, the head of Ukraine’s energy company Naftogaz, welcomed the German regulator’s decision to suspend certification.

Also, the regulator stated that the European Commission and Berlin’s economy ministry had been informed of Nord Stream 2’s notice. Two months have passed since the German regulator made the decision that the Commission should evaluate the application.

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