In anticipation of the enactment of the National Defense Authorization Act (NDAA), Allseas has suspended its Nord Stream 2 pipelay activities. Allseas will proceed, consistent with the legislation’s wind down provision and expect guidance comprising of the necessary regulatory, technical and environmental clarifications from the relevant US authority.

The U.S. has little leverage to prevent the Nord Stream 2 gas pipeline project between Russia and Germany from being completed, two administration officials said, acknowledging the failure of a years-long effort to head off what officials believe is a threat to European security.

The 764-mile Nord Stream 2 will deliver Russian gas to Germany under the Baltic Sea and is expected to double the capacity of the gas corridor to 110 Bcm/year.

"I can confirm the Pioneering Spirit is currently installing the pipeline in Danish waters," the Allseas spokesman said.

The potential delay in Nord Stream 2 construction also undermines Russia's position in negotiating a new transit deal with Ukraine's Naftogaz. Ukraine transited some 87 Bcm of Russian gas to Europe in 2018 -- or some 44% of total Russian exports -- but those volumes are set to slump once the planned Nord Stream 2 and TurkStream gas pipelines come online.

"The law implements a European compromise, in which we, together with France and the Commission and other member states played a major role," Altmaier said.

The timeline for work to lay the section of pipeline in Danish waters will be key to when Nord Stream 2 is able to begin flowing gas, with wider implications for the European gas market -- including whether Russia's Gazprom agrees a new transit deal with Ukraine's Naftogaz.

Poland's antitrust authority, the Office of Competition and Consumer Protection (UOKiK), said Friday it had imposed a fine on France's Engie of Zloty 172 million ($44.5 million) for its failure to provide the watchdog with documents regarding its agreements with Gazprom aboutfinancing the Nord Stream 2 gas pipeline.

Poland sees Nord Stream 2, which would double Russia’s gas export capacity via the Baltic Sea, as a threat to Europe’s energy security and argues it will strengthen Gazprom’s already dominant position on the market.

A U.S. Senate committee passed a bill in July to place sanctions on companies and individuals involved in building the Nord Stream-2 gas pipeline from Russia to Germany.