OPAL Exemption Process Halted

The European Commission has suspended the procedure on examining an exemption for the OPAL gas pipeline from the Third Energy Package.

According to a report by TASS, Gazprom did not approve the proposal to extend the deadline on conditions of the agreement with Germany’s Federal Network Agency. 

Energy Minister Alexander Novak said that Gazprom will reapply to the European Commission for using 100% of the capacities of the  gas pipeline.

“The entire procedure will be undertaken with the new composition of the European Commission,” Novak said.

The initial decision that Gazprom can use 50% of the pipeline’s capacities remains in force, including additional conditions which the European Commission demanded upon the procedure in 2009.

The European Union had delayed to January on a decision on whether to grant OPAL an exemption from the Third Energy Package as requested by Gazprom.

The OPAL gas pipeline has an annual capacity of 36 billion cubic meters and runs along Germany’s eastern border, linking the Nord Stream pipeline to the Czech Republic thus bypassing Ukraine.

At present, Gazprom is permitted to only use of 50% of the existing capacity as under the rules of the Third Energy Package, Gazprom is required to reserve up to 50% of the OPAL gas pipeline’s capacities for gas transportation by independent gas suppliers.