Nord Stream’s Contribution to European Security of Supply Confirmed
German Federal Network Agency grants derogation from regulation to Nord Stream Pipeline
May 20, 2020 | Zug, Switzerland | On 20 May 2020, the Federal Network Agency granted to the Nord Stream Pipeline a derogation from the application of the primary provisions of the EU Gas Directive. Nord Stream AG submitted a corresponding application on 19 December 2019 after the changes to the EU Gas Directive were implemented into German law by the amended Energy Industry Act of the Federal Republic of Germany (EnWG). With these changes, the regulations of the Third Energy Package are applied to the sections of the offshore gas pipelines in the territories of an EU member state, where the first interconnection point with the gas pipeline network is located.
In line with the application, the derogation from the particular regulation applies to the pipeline section located on German territory (including German territorial waters) and is initially valid for 20 years, retroactively from the amended EnWG’s entry into force on 12 December 2019.
“We are pleased with this positive decision by the German Federal Network Agency. We particularly welcome the fact that the Federal Network Agency has highlighted the Nord Stream Pipeline’s contribution to security of supply and confirmed the absence of detrimental effects on competition on the European internal gas market,” said Alexey Zaytsev, Managing Director of Nord Stream AG, adding: “For more than eight years now, the Nord Stream Pipeline has stood for safe, reliable and efficient transport of natural gas. Especially in view of the declining domestic production of natural gas, it will thus continue to fulfil an important role in securing Europe’s energy supply and support the EU’s CO2 reduction targets”.
To this date, the Nord Stream Pipeline has transported over 345 billion cubic metres of natural gas since the commissioning of the first line in November 2011. The twin pipelines extend from Vyborg in Russia through the Baltic Sea to Lubmin near Greifswald. With a length of 1,224 kilometres, they form the shortest connection between the large gas reserves in northern Russia and the European market.
