NORD STREAM 2 UNLAWFUL DISCRIMINATION

PLATTS - 28 Jul 2020 - Nord Stream 2 filed an appeal to the EU Court of Justice against the EU General Court's dismissal in May of the pipeline company's attempt to annul European law on pipelines from non-EU countries, a spokesman for the company said July 28.

In July 2019, the Gazprom-owned company, which is building a 55 Bcm/year natural gas pipeline from Russia to Germany, brought an action before the EU General Court, requesting the amended EU Gas Directive be annulled due to infringement of European rules on equal treatment and proportionality.

On May 20, the court dismissed the lawsuit as inadmissible on procedural grounds.

"Nord Stream 2 does not share the procedural arguments of the court and maintains that the amendment of the Gas Directive constitutes an unlawful discrimination," a spokesman for Nord Stream 2 told S&P Global Platts.

Nord Stream 2 had hoped to bring the pipeline online by the end of 2019, but first permitting issues in Denmark and now US sanctions have delayed completion of the project.

The pipeline is seen as crucial to Russian plans to scale down use of the Ukrainian transit corridor from 2021 for supply of its gas to Europe.

"We want the General Court to review the content of our complaint," the spokesman said.

The next step would see the EU filing a rejoinder to Nord Stream 2's appeal, he said. A decision on the admissibility of the action by the EU Court of Justice would then be expected within the next 12 months.

On July 20, the developer said investments needed to complete the pipeline could be blocked if the US imposed sanctions on companies involved in the project.

Five European energy companies — France's Engie, Austria's OMV, Anglo-Dutch Shell, and Germany's Uniper and Wintershall Dea — have co-financed the project, each committing to pay Eur950 million ($1.114 billion).

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