NORD STREAM 2 FILLING

PLATTS - 17 Dec 2021 - The operator of the Nord Stream 2 gas pipeline from Russia to Germany said Dec. 17 it had started the process of filling the second string of the link with gas.

The entire 55 Bcm/year Nord Stream 2 pipeline was completed in September, but commercial operations are yet to begin as the operator waits for regulatory clearance.

In the meantime, the operator Nord Stream 2 AG continues the necessary technical preparations for the pipeline ahead of its launch.

"As of Dec. 17, the gas-in procedure for the second string of the Nord Stream 2 pipeline has started," it said in a statement. "Like the first string, the second string will be gradually filled with gas to build the required inventory and pressure," it said.

"Pre-commissioning activities on the second string were completed successfully to assure the pipeline integrity. Nord Stream 2 will inform about further technical steps in due time," it said.

The process of filling the first 27.5 Bcm/year capacity string with gas began on Oct. 4 and was completed two weeks later on Oct. 18.

It was filled with some 177 million cu m of so-called "technical" gas, reaching a pressure of 103 bar in the pipeline. "This pressure is sufficient to start gas transportation in future," the operator said at the time.

Russia has repeatedly said that the early launch of Nord Stream 2 would help ease the current high gas prices in Europe, which have hit new record highs this month on winter supply concerns.

According to S&P Global Platts price assessments, the TTF day-ahead contract was priced at an all-time high of Eur141.65/MWh ($46.95/MMBtu) Dec. 16, a 775% year-on-year increase.

Certification process

While the technical preparations for the launch of Nord Stream 2 continue, it seems unlikely the pipeline will be able to begin commercial flows any time soon.

The head of the German energy regulator, the Bundesnetzagentur, said Dec. 16 there would be no final decision on the certification of the operator of the pipeline in the first half of 2022.

Speaking at a press conference, Bundesnetzagentur President Jochen Homann said the certification process remained suspended pending the submission of documentation from Switzerland-based Nord Stream 2 AG on the transfer of assets to a new German company.

"The moment we receive the documents, the review period for the certification begins again," Homann said.

"Then the whole file goes to the European Commission, which also has plenty of time to deal with it. This means that there will be no decisions in the first half of the year," he said.

The German regulator had four months from Sept. 8 to issue a draft decision on certification, but the process was suspended on Nov. 16 after a little more than two months had passed.

The four-month process will resume once the regulator is satisfied that the actions around the German subsidiary are completed.

Homann said it was "difficult" to know when it would receive the updated documentation from Nord Stream 2 AG, which has declined to comment on the process.

The European Commission also has up to four months to issue a decision, after which time it is returned to the Bundesnetzagentur, which has a further two months to publish its final opinion.

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