The European Court has dismissed the claims of both Nord Streams...

The European Court has dismissed the claims of both Nord Streams...

The European Court of General Jurisdiction dismissed the claims of the Nord Stream and Nord Stream-2 operators, Nord Stream AG, and Nord Stream 2 AG, which requested that the rules of the updated EU gas directive not apply to gas pipelines from third countries. This was stated in a press release on the court website.

The directive, in particular, requires that the producer does not own the pipeline through which gas is delivered. For Nord Stream-2, the requirement is relevant over a 12-mile stretch off the coast of Germany.

Operators filed a lawsuit in November 2019. They demanded that the amendments be partially canceled due to too short deadlines for issuing exceptions for projects falling under them.

Earlier, the German Federal Grid Agency refused Nord Stream 2 AG to remove the gas pipeline from the norms of the updated EU gas directive. The operator can still appeal this decision, but if it is satisfied, then Germany will come into conflict with the European Union.

One of the consequences of applying the directive to Nord Stream-2 is to halve its capacity. The directive requires booking 50 percent of capacity for alternative suppliers, but only Gazprom has the right to export gas to Russia.

Previously, the rules did not apply to sea routes, now they apply to all gas pipelines that were built after May 2019. Russia tried to prove that the project was fully funded until that time, which means that it can be considered complete, but the court did not accept these arguments.

At the same time, Nord Stream said that the German Federal Network Agency has allowed the Nord Stream to be removed from the scope of the directive. The decision was expected, as it was completed before the indicated date. Deliveries on it are still possible in full, however, the capacity of its land continuation, the OPAL gas pipeline, is still doubled.

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