Poland Blocks Nord Stream 2 Partners' Plans

The six European energy companies planning to form the Nord Stream 2 AG joint venture have withdrawn their application to do so, following a challenge from the Polish competition authority, they said in a statement August 12.

They said: "Today, Engie, Gazprom, OMV, Shell, Uniper, and Wintershall (the applicants) submitted their joint response to the Statement of Objections of the Polish competition authority in the merger control proceedings regarding the planned creation of a joint venture among the applicants. Following that, the applicants have decided to jointly withdraw their merger control notification from the Polish competition authority."

That leaves just Gazprom as the sole shareholder paying the bills, and relying on the financial support of its partners through other means than a joint venture registered in Switzerland.

One prospective shareholder told NGE that it had not so far made any contribution to the project, although much of the line pipe and other goods and services have either been delivered or are under binding contract with third party suppliers. That is probably true of the other four as well.

The first Nord Stream line, which is operated by a joint venture but with different shareholders (Credit: Nord Stream AG)

The statement continued: "All the applicants believe that the project is crucial for the European energy system and each of them will therefore individually contemplate alternative ways to contribute to it. The applicants’ decision to withdraw the notification will not affect the continuation by Nord Stream 2 AG of the construction of the Nord Stream 2 pipelines as planned, including its scheduling."

Details on what objections the authority found have not so far been published, although each of the companies has activities in the industrial country involving energy supply in one form or another. The withdrawal of the application means there is no plan yet to mount a legal challenge to the authority's decision.

William Powell