25 Nov 2016 15:46

Novak, Sefcovic discussed permitting use of OPAL capacity

MOSCOW. Nov 25 (Interfax) - Russian Energy Minister Alexander Novak and European Commission Vice President Maros Sefcovic discussed allowing the increased use of the OPAL pipeline's capacity by Gazprom at their meeting today, Novak told reporters.

OPAL is the eastern offshoot of the Nord Stream pipeline from the Russian coast to Germany via the Baltic Sea.

"We discussed the issue of the European Commission making OPAL's capacity available. The decision was reached on October 28. This was a positive step forward in our bilateral relations. We consider that the increased use of OPAL's capacity is intended to ensure more reliable and guaranteed supplies to European consumers, especially in the cold period," Novak said.

In 2009, the EC exempted the OPAL pipeline from its third party access and tariff regulation provisions, but demanded a "gas release" program, involving the sale of gas under conditions set by the regulatory authority, for the Czech market. Gazprom refused to fulfill this condition and half of OPAL's capacity was frozen.

Now, just 10% of OPAL's capacity (20% in sufficient demand) will be made available to third parties. Gazprom can book the remaining 30%-40% of the capacity, which will be put up for pubic bidding.

In October, the EC allowed Gazprom to increase the use of OPAL's capacity, but made unilateral; amendments to the relevant agreement. The Russian party said it would first study those amendments.

Gazprom will soon give a response to the European Commission regarding the use of the OPAL gas pipeline, said Russia's envoy to the EU, Vladimir Chizhov. "The European Commission has given its decision. Gazprom will give its response [whether or not it accepts it] in the next few days, as far as I know," he said following the talks between Novak and Sefcovic.

Novak and Sefcovic also agreed to continue to work towards drafting an inter-governmental agreement on the Russian-Belarusian-Baltic energy link, Novak said.

"We agreed to continue to work on proposals for signing an inter-governmental agreement on the synchronous operation of the BRELL energy bridge between Belarus, Russia and the Baltic States, which currently operate in parallel with Belarus and Russia. Studies are under way and will soon be completed to produce the best option to interact in this issue," Novak said.