Nord Stream 2 appeals German regulator's decision in case on exemption of pipeline from norms of EU's Third Energy Package
MOSCOW. June 17 (Interfax) - Nord Stream 2 AG has gone to court to appeal a decision by Germany's federal grid agency, Bundesnetzagentur, which declined to exempt the pipeline from the norms of the EU's Third Energy Package, the project company told Interfax.
On May 15, the Bundesnetzagentur has rejected the application from Nord Stream 2 for a derogation dated January 10. The authority considers that the Nord Stream 2 Pipeline did not meet the criteria of "completion" by May 23, 2019 as required by article 28b, para. 1, clause 1 of the German Energy Industry Act.
"On June 15 Nord Stream 2 filed an appeal to the Higher Regional Court Düsseldorf against that decision. Nord Stream 2 maintains that on the effective date of 23 May 2019, the pipeline had been completed from the perspective of economic functionality. Based on the applicable legal framework at that time, the company had made irrevocable investments worth billions of euros long before the European Commission announced its plan to amend the Gas Directive," Nord Stream 2 AG told Interfax.
"International legal experts have confirmed that narrowing the definition of "completed" to the conclusion of the physical construction of a gas pipeline would violate the protection of legitimate expectations and other fundamental rights in EU law. It would also be in breach of constitutional guarantees from the German Basic Law," the project company said.
"The rejection of Nord Stream 2's application for a derogation exposes the discriminating effect of the amended EU Gas Directive. Nord Stream 2 has challenged the amendment before the EU General Court and under the Energy Charter Treaty," Nord Stream 2 AG said.
Nord Stream 2 is a fully permitted project, constructed in accordance with the applicable national and international legislation. The operation of Nord Stream 2 will comply with all applicable legal requirements, the company said.
"The initiated and ongoing procedures serve the purpose of clarifying the applicable rules for the operation of Nord Stream 2. The need for clarification has been caused by the enactment of an unlawfully discriminating amendment to the EU Gas Directive, and by the absence of an impact assessment which the European Commission is normally obliged to provide for any new legislation," Nord Stream 2 AG said.
