Germany, Austria & Czech Republic GTS Write to EC in Support of Nord Stream-2

The European Commission received a letter from six operators of gas transmission systems (GTS) from Germany, Austria and the Czech Republic with an expression of support for the construction of the ‘Nord Stream-2’ gas pipeline, a spokesman for the European Commission said.

"I can confirm that the letter was received, as are all letters addressed to the European Commission. We will respond to it at the appropriate level," the agency's interlocutor said.

Bloomberg says that the letter was addressed to the Head of the European Commission, Jean-Claude Juncker, and was signed by Gas Connect Austria, Fluxys Germany, ONTRAS, NET4Gas, Gascade and Gasunie Germany.

The GTS operators also expressed concern about the planned negotiations for an agreement with the Russian Federation on the key principles of the gas pipeline operation, Bloomberg writes. “Nord Stream-2 will help to maintain competition in the European gas market and will strengthen security of supply, while negotiations can cause significant negative effects,” the letter claims, adding that “if the attitude towards the Nord Stream-2 project differs from that of other similar pipeline construction projects, for example, in the Mediterranean, this will increase the prospect of legal uncertainty for the supporters of pipeline projects in the future”.

The GTS operators started investing in new gas infrastructure assets related to Nord Stream-2 on land. Any postponement related to potential negotiations can cause significant economic damage to these companies. In addition, as noted in the letter, it can become a factor that keeps companies from investing in the future. The total amount of investment required for operators of the GTS is about EUR 3-4 billion. Nord Stream-2 involves the construction of two strings of a gas pipeline with a total capacity of 55 billion cubic meters of gas per year from the Russian coast through the Baltic Sea to Germany. The new pipeline is planned to be built next to the ‘Nord Stream’.

Nord Stream-2 does not apply to all the rules of the internal market of the European Union, the third energy package, since the pipe will not pass through the land part of the EU, but will go across the sea. Therefore, the EC expresses its desire to reach an agreement with the Russian Federation on a number of key principles that it would like to extend to the work of this gas pipeline. Among these principles are transparency of the gas pipeline operation, non-discriminatory establishment of tariffs for pumping gas, access of third parties to the ability to pump "blue fuel", as well as separation of activities for the sale and transportation of gas, previously reported in the materials of the EC.

Dimitri Dolaberidze