The reach of this rule was widened last year to also include gas infrastructure whose supply originates outside the EU. Projects completed before 23 May 2019 can apply for an exemption and Gazprom had argued the cut-off should be not set at the time of commissioning, but when the project reached financial close.
The decision to build Nord Stream was made years earlier but works on the project were halted when the Swiss pipe-laying company ceased work over the treat of U.S. sanctions. Now, the Russian pipe-laying vessel Akademik Cherski is on route to Danish waters to complete construction of final part of the pipeline.
Gazprom likely to appeal decision
Turning down Gazprom’s application, the German regulator Bundesnetzagentur remained firm that the term ‘completion’ applied to construction and not financial close. It had asked all EU member states to comment on Gazprom’s application but none supported the argument.
Under EU rules, Gazprom would not only unbundle its supply and transport business but also grant third parties access to transport limited gas volumes through Nord Stream-2. The Russian state gas company is now preparing to appeal against the regulator’s decision.
The controversial second leg of Nord Stream will have a capacity of 55 Bcm per year which will effectively double Gazprom’s existing export capacity to Germany. Poland, Ukraine and several other eastern European countries oppose the enlarged interconnector through the Baltic Sea given that it will likely lead to a reduction in gas transit through their countries which lowers their gas transit fees.