Nord Stream 2, TAP Respond to EC's Pipelines Plan

Two principal pipeline projects that would be impacted by a proposed extension of EU gas rules to import pipelines originating outside the European Union have responded to the European Commission's announcement earlier November 8.

A spokesman for the Gazprom-owned Nord Stream 2 (NS2) pipeline project, that envisages an extra 55bn m3/yr of Russian gas import capacity into northeast Germany with initial flows by late 2019, said: "We take note of the European Commission's intention to expand the scope of the Gas Directive to pipelines outside the EU's internal market. We will analyse the content of this amendment as well as its impact on the existing regulatory framework."

"It appears that the European Commission will not provide a proper impact assessment which would normally be expected according to the European Commission's own Better Regulation principles," the NS2 spokesman added: "This legislative proposal seems to be a far-reaching change to the scope of application of the EU's energy laws, which would have merited a thorough consultation of stakeholders. A rushed process without the proper reflections may end up harming much needed investments in energy infrastructure, unnecessarily injecting uncertainty into what is a well- functioning regulatory framework. We will follow the upcoming discussions in the European Parliament and in the Council closely and stand ready to provide our expertise whenever requested. The EU's energy security depends on the availability of easily accessible, substantial and diverse import capacities, which in turn rely on a stable and predictable regulatory framework. Any changes to this successful framework need to be considered carefully."

Routing of NS2 and its possible impact from draft Danish and EC legislation were discussed also at the European Autumn Gas Conference in Milan November 8 by several panellists.

Separately, a spokeswoman for the Trans-Adriatic Pipeline (TAP) project that will cross Greece, Albania and the Adriatic before landfall in southeast Italy told NGW: "TAP is currently evaluating the European Commission's proposals. No further comment."

TAP, intially planned as a 10bn m³/yr project, is backed by the European Commission, as it is the last chain in a series of three pipe projects that will bring Caspian gas (from the BP-led Azeri Shah Deniz 2 venture) to Europe for the first time starting 2020. In contrast, the EC has long argued that NS2 will not lead to increased diversity of gas supplies in the EU, whereas the most powerful EU member state Germany takes the opposite position.

NGW also contacted the Norwegian state-run gas export pipeline system operator Gassco and the petroleum ministry in Oslo to see if they had a statement about the EC announcement, but to date has not received a response. The Gassco-run system, managed on behalf of the public-privately owned Gassled consortium, operates 8,300 km of gas export pipes originating in Norway, plus half a dozen beach terminals in Germany, Britain, France and Belgium. The EC said its proposals will not allow for derogations to be issued for existing pipelines originating from third countries. That means pipes entering from North Africa (subsea from Algeria, and via Morocco, carrying Algerian gas) could also be subject to new rules, if approved by the EU Council and Parliament. 

Mark Smedley