The German regulator allowed PGNiG to conduct a derogation procedure on Nord Stream 2

The German regulator Bundesnetzagentur, examining the application for exemption from the new Nord Stream 2 gas pipeline directive, allowed PGNiG and the German company PGNiG Supply & Trading (PST) to participate in this proceeding, reported PGNiG on Wednesday.

As emphasised by PGNiG, the company, like the Polish government, consistently points to the negative consequences of the Nord Stream 2 project for security of supply and competition in the gas market in Central and Eastern Europe.

"Incorporation of us in proceedings will enable the interests of PGNiG and gas customers to be protected in the course of the derogation procedure. Nord Stream 2 cannot be privileged," stated the gas president Jerzy Kwieciński.

The revised EU Gas Directive requires that all pipelines connecting the EU with third countries put into service after the entry into force of the legislation in May 2019 be subject to EU regulations. The Directive allows for derogations – a derogation for infrastructure completed before the entry into force of the Directive.

In January 2020, Nord Stream 2's gas pipeline builder Nord Stream 2 AG applied to Bundesnetzagentur for a derogation, arguing, inter alia, that the legal part of the gas pipeline – which lies in territorial waters, is a legally-owned part of the gas pipeline. Germany, or in the EU, was completed before May 2019. In July 2019, Nord Stream 2 AG had previously challenged the new provisions of the TEU Directive.

Under the rules, the Bundesnetzagentur derogation procedure must be completed by 24 May 2020.

Source: PAP

Share this entry