Naftogaz Ukrainy files suit to deny Gazprom wider access to OPAL

MOSCOW, Mar 29 (PRIME) -- Ukraine’s energy holding Naftogaz Ukrainy has filed a suit to the General Court of the E.U. Court of Justice to void an October 2016 decision of the European Commission allowing Russian gas giant Gazprom to expand its access to the OPAL natural gas pipeline, the company said in a statement on Wednesday.

Naftogaz Ukrainy believes that the commission had no power to make such a decision. The decision contradicts a 2009/73 gas directive, weakens competition, and creates risks for the safety of gas supplies to Ukraine and other East European countries as well as for efficient operation of the E.U. and the Energy Union internal gas markets by strengthening Gazprom’s position, the company said.

The company also said that the decision was made without consultations with Ukraine, which violates article 724 of the agreement on association between Ukraine and the E.U., and E.U. obligations under the Energy Charter and the Energy Union agreement.

Under the third energy package, Gazprom has access to half of the OPAL capacities, or 12.8 billion cubic meters. The European Commission decided in October 2016 that Gazprom will retain its right to use half of the pipeline’s capacity and will be given admission to auctions for another 40%. On December 19, Poland’s PGNiG challenged the decision saying it is a threat to the safety of gas supplies to the E.U.

In December, the European Court of Justice suspended the commission’s decision and requested the commission and PGNiG provide additional data on the possible impact from Gazprom’s access to OPAL.

End