Uniper says European Union decision on Nord Stream 2 won't affect pipeline construction

10 February, 2019, 22:01 | Author: Wade Massey
  • German Chancellor Angela Merkel and French President Emmanuel Macron attend a signing of a new agreement on bilateral cooperation and integration known as Treaty of Aachen in Aachen Germany

But Russian state owned energy giant Gazprom will have to follow European Union regulations and will no longer be the sole operator of the pipeline, which bypasses Ukraine to supply Germany with gas.

It is trying to look beyond Russian gas - to imports of U.S. liquified natural gas (LNG) and new pipelines, such as a planned Norway-Poland pipeline via Denmark, that would supply Sweden and other neighbouring states.

According to the French representation of the compromise provides for a two-stage procedure: The first responsibility for Pipelines with third countries such as Russian Federation spent in the EU country where the line for the first time on the European network hits, BelTA learned from the environment of the President of France, Emmanuel Macron.

France, a pivotal player in the EU gas talks, had said earlier it would support European Union oversight of new offshore energy pipelines.

Floating excavators prepare an underwater trench for the North Stream 2 pipeline close to Lubmin, Germany, May 15, 2018.

However, an attempt to implement new regulations mid-way through the Nord Stream 2 project are nearly certain to run into legal challenges from Russian Federation, said Katja Yafimava, a senior research fellow at Britain's Oxford Institute for Energy Studies.

Critics are also anxious that the pipeline could deliver a major blow to Ukraine's economy since along with its TurkStream project - another pipeline that runs from Russia to Turkey - Russia would be able to completely bypass Ukraine pipelines, leaving Kyev without gas transit fees. Previously, the EU States had agreed on a compromise, after the above Changes to the EU Gas Directive, stricter requirements for the project decided. "The French-German compromise was adopted pretty much unanimously", one diplomat told AFP.

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Peskov accused Washington of "underhanded competition" by trying to encourage Europeans "to buy more expensive American gas".

On the other hand, the United States, which is itself a major gas producer, was also fuelling concerns that the project would increase Europe's dependence on Russian gas.

German officials were keen Friday to downplay suggestions of a Franco-German rift, arguing that Paris and Berlin have a strong relationship that allows them to resolve differences.

Besides France, opposition has been expressed by Poland and the Baltic countries, who've raised concerns over the alleged danger of Europe becoming dependent on Russian Federation and the subsequent diminished transit role of Ukraine. The pipeline project will be on the line until the legislation passes.

Construction has already begun, involving companies such as Germany's Wintershall and Uniper, Dutch-British Shell, France's Engie and Austria's OMV.

Western firms invested in the project have so far each financed 600 million euros ($681.00 million) until year's end in what they say is a sign of faith that it will be continued, sources familiar with the matter said.

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