Poland Claims NS2 Regulatory Victory

Polish state oil and gas company PGNiG claimed another victory over Gazprom May 15 as the German energy market regulator – Bundesnetzagentur – denied the 55bn m³/yr Nord Stream 2 gas pipeline exemptions from European Union energy law.

That means that the line has to offer third-party access rules and set transparent tariffs, and operate independently of Gazprom in its capacity of gas supplier, although the application of EU law to offshore pipelines was not a given until last May, long after the final investment decision was taken.

 As a state owned company, PGNiG's "actions in the proceedings before the German regulator had the support of the Polish government administration from the beginning," it said.

“Poles' energy security is one of the government's priorities. We strongly oppose all monopolistic practices of foreign companies and attempts to divide European customers into better and worse. Today's decision of the German regulator, which rejected the Nord Stream 2 request for privileged treatment, is proof of the effectiveness of our energy policy,” said the deputy prime minister Jacek Sasin.

 PGNiG CEO Jerzy Kwiecinski said the decision "confirms the strength of our arguments against excluding NS 2 from the application of regulations of the Third Energy Package of the European Union. From the beginning, we believed NS 2 cannot be privileged. Like the Polish government, we are still of the opinion that the Nord Stream 2 project carries negative consequences for security of supply and competition on the gas market in central and eastern Europe."

PGNiG and its German subsidiary PGNiG Supply & Trading will "analyse the content of the decision and its justification in detail. The companies will monitor the further course of the case, including possible appeals initiated by Nord Stream 2."

Poland's first victory was some years ago, when its anti-trust agency prevented the five west European companies forming a joint venture with Gazprom. That led to French Engie, German Uniper and Wintershall, Austrian OMV and Anglo-Dutch major Shell to contribute financially only. Nord Stream 1 however is a joint venture.