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In April of 2019, the EU extended its internal gas market regulations (Directive 2009/73/EC, better known as the Third Energy Package or TEP) to pipelines to and from non-EU countries (Directive (EU) 2019/692). abandoning the project. Opposition to Nord Stream 2 within Europe has in the recent past threatened to derail the project.
Here is what you need to know about the massive project.The project also runs contrary to Brussels' efforts to wean Europe off Russian gas. It includes two lines running from Vyborg to Greifswald forming original Nord Stream (Nord Stream 1), and two lines running from Ust-Luga to Greifswald termed Nord Stream 2. All of them are also involved in financing the NS2 project after they were Hence, Gazprom has options that would allow for NS2 to operate, if successfully completed. The company would also have to commit to transparency levels. The multi-billion pound Nord Stream 2 will run through the Baltic Sea and supply gas to Germany and the EU. endobj
The EU’s domestic gas production is in rapid decline. EU law applies only to the latter – much shorter (4% of total length) part, which would have to be operated by an entity other than Gazprom. In the case of NS2 this agency is the German Bundesnetzagentur (BnetzA). But the proposal is only one from a series of difficulties the NS2 pipeline has been currently facing. Even President Putin himself ensured the public that the pipeline will be completed without international assistance, albeit with a 12 May 2020, Mecklenburg-Western Pomerania, Sassnitz: The Russian laying ship "Akademik Tscherski" But Gazprom partially owns the vessel, which means that a switch to Akademik Czersky could expose the company to U.S. sanctions, both current and proposed. Such a powerful consortium guarantees the best technology, security and corporate governance. <>
This will add to other potential costs NS2 currently faces. Such To begin, if Gazprom needs to adjust to the EU gas market requirements of third-party access, it may have to settle for access to partial pipeline capacity; similar to the 50 percent limitation on In that case, Gazprom would have to apply to the German regulator (BNetz) to assign another entity to perform the role of transmission system operator. Die Molchempfangsstation für die Nord Stream 2-Pipeline (links im Bild) ist seit Ende 2019 betriebsbereit. In addition, Gazprom would also have to accept gas tariffs as set by a German operator, which would not necessarily reflect Gazprom’s own profit calculus. %PDF-1.5
Under the Gazprom could avoid the new EU rules if it is awarded an exemption by the energy market regulator of the EU member where the pipeline enters the EU. The Nord Stream 2 company rejects the charge that it is undermining a common European approach to energy security, arguing that the gas delivered through the pipeline can flow anywhere in the region. By deploying its own vessel, Gazprom hopes to avoid the worst of potential effects of the U.S. sanctions, i.e. In April 2018, the EU Commission refused to back the project, saying it did not contribute to the EU goals of diversifying the gas supplies. However, all this will take time, efforts, and a lot of additional resources delaying the pipeline completion possibly beyond the one year that Gazprom has initially expected and increasing the pipeline’s And even if Gazprom completes the pipeline, the company will have to face legal obstacles related to its operation within the EU internal market. Profits could be seriously hurt by potential capacity access limitations and the need to divide the spoils between; 1) Gazprom as gas owner; 2) a pipeline owner; and 3) an operator.