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1 Nov, 2021 15:03

Nord Stream operator appeals German court ruling forcing split of its gas production and pipeline operations

Nord Stream operator appeals German court ruling forcing split of its gas production and pipeline operations

The operator of Nord Stream 2 has appealed the decision of the Dusseldorf court to keep the pipeline under the EU’s new gas directive, which requires gas producers to be separate firms from those that control transportation.

In May 2020, German energy regulator, the Federal Network Agency, refused to exempt Nord Stream 2 from the requirements of the updated EU gas directive. The regulator stated that since the pipeline had not been completed by May 23, 2019, it falls under the amendments that have come into force since that time.

However, the new rule did not exist when the construction of the multi-billion-dollar project began, and some see it as an attempt to halt the pipeline in response to the criticism from the US and some Eastern European countries. The completion of the pipeline was also delayed due to US sanctions, which targeted European firms working on the project.

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Nord Stream 2 AG launched legal action to appeal this decision, which is still underway. The company also submitted an application to the Federal Network Agency of Germany to register itself as an independent operator of the new pipeline.

The court in Dusseldorf rejected a recent complaint by Nord Stream 2 AG against the regulator's decision on August 25 this year. Russia’s state energy giant Gazprom says the ruling will be appealed to Germany’s Supreme Court.

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