Report: Six pipeline firms back N Stream-2, oppose special terms

MOSCOW, Jun 27 (PRIME) -- Six E.U. gas pipeline system operators have supported Russian pipeline Nord Stream-2 and expressed their concern over preparations to negotiate a special legal framework for the project in a letter to European Commission President Jean-Claude Juncker, Bloomberg reported Tuesday, citing a copy of the letter.

Gas Connect Austria, Fluxys Germany, ONTRAS, NET4Gas, Gascade and Gasunie Germany said that the approach to the project differs from those of equivalent pipeline initiatives, including in the Mediterranean Sea increasing legal uncertainty for supporters of future pipeline projects.

On Monday, E.U. energy ministers approved the idea of the European Commission to establish a special legal framework for Nord Stream-2. A source with knowledge of the situation told PRIME that E.U. states will continue to discuss whether to give the European Commission a mandate to start negotiations on Nord Stream-2 in September after a summer break.

Nord Stream-2 envisages construction of two lines of a natural gas pipeline with an annual capacity of up to 55 billion cubic meters, running from the Russian shore to Germany under the Baltic Sea. Russian gas giant Gazprom is implementing the project together with Engie, OMV, Royal Dutch Shell, Uniper and Wintershall.

The E.U. internal market rules are not applicable for Nord Stream-2 because the pipeline runs under the sea. According to earlier statements by the European Commission, it wants to ensure functional transparency of the pipeline, non-discriminative tariffs, access of third parties to the pipeline capacity and division of the sale and transportation activities.

Operator of the project Nord Stream-2 AG said earlier that creation of a special legal framework can undermine private investment in the E.U. because it arises from a biased approach to the project.

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