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Germany has stopped the process of the Nord Stream 2 certification

Germany has stopped the process of the Nord Stream 2 certification. The reason is European Union (EU) legislation.

Germany has stopped the process of the Nord Stream 2 certification
Yazar: Tom Roberts

Yayınlanma: 18 Kasım 2021 12:19

Güncellenme: 10 Aralık 2024 20:01

Germany has stopped the process of the Nord Stream 2 certification

After completion problems for the US resistance, the Nord Stream 2 pipeline now has difficulties in commissioning. Germany has stopped the process of its certification, which means that hopes for a rapid increase in gas supplies to Europe after its launch will not be fulfilled. The Bundesnetzagentur (BNetzA) announced on Tuesday that it had suspended the certification process for the Nord Stream 2 gas pipeline, which is to flow Russian gas directly from Russia to Germany. It cannot be operated without the approval of the Bonn authorities. The reason is European Union (EU) legislation. According to it, companies that produce, transport and distribute gas within the EU must be separate and separate companies. The aim of the measure is to ensure fair competition in the market and to prevent companies from preventing competitors from accessing the infrastructure. The only shareholder in Nord Stream 2 AG, which has applied for certification as an independent pipeline operator and is based in Zug, Switzerland, is formally the Russian group Gazprom. "After a thorough examination of the documents, the Federal Office for the Regulation of Network Industries has concluded that certification of the Nord Stream 2 pipeline operator is only possible if the legal form of this operator complies with German legislation," the German authority said. This would mean setting up a subsidiary based in Germany. According to the Bundesnetzagentur, that subsidiary should own and operate the German section of the pipeline and must apply for an operating license upon submission of the relevant documents. Only then can the certification process continue. The deadline for this process expires in January. Even after the end of certification in Germany, an investigation by the European Commission (EC) is still expected, which has up to four months to review, and the political pressure of the pipeline opponents within the EU is great. After taking the position of the EC, the Bundesnetzagentur again has two months for another possible certification. The Federal Ministry of Economic Affairs called the decision of the Bundesnetzagentur to be correct. According to a ministry spokeswoman, these are purely regulatory issues. However, she added that further research would not affect the ministry's analysis of the impact of Nord Stream 2 on energy security. The ministry concluded that the licensing of the pipeline did not jeopardize gas supplies to Germany or the EU. Ukraine welcomed the suspension of pipeline certification as "good news". However, the head of the Ukrainian state concern Naftogaz, Yuri Vitrenko, called the creation of a German subsidiary to operate Nord Stream 2 a "legal trick", which he said was "a mockery of European rules. Tuesday's announcement by the German authorities caused European gas prices to rise sharply. Traders fear that Europe will not get the gas it needs to alleviate the shortcomings this winter. There are real fears that in the event of a cold winter, there will be power outages in Europe, said Trafigura boss Jeremy Weir. European gas prices have more than tripled this year. The main reason was weak supplies from Russia, which caused European gas reserves to be the lowest in more than ten years at the beginning of the current heating season. Moscow has repeatedly stated that it can supply more gas after the Nord Stream 2 pipeline is up and running. According to some European politicians and experts, Russia is pushing Germany and the EU to approve the operation of the Nord Stream 2 pipeline.
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