UPDATE 2: Investors in Nord Stream-2 to appeal decision of Poland

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MOSCOW, Jul 22 (PRIME) -- The six companies which plan to construct the Nord Stream-2 natural gas pipeline will respond to objections of the Polish antimonopoly watchdog, which believes that the project could limit competition, Russian gas giant Gazprom, OMV, Shell, Engie, Wintershall and Uniper, a 100% unit of Germany’s E.ON, said in a joint statement.

Earlier on Friday, Poland’s Office of Competition and Consumer Protection (UOKiK) said that it is against establishing a joint venture with Gazprom to implement the Nord Stream-2 project.

“UOKiK is against establishing a joint venture with participation of six companies in order to build Nord Stream-2,” the watchdog said.

“Gazprom is the dominant supplier of natural gas to Poland, and the deal could increase the company’s market power towards our consumers further.”

The Nord Stream-2 project envisages construction of two lines of a gas pipeline with an annual capacity of up to 55 billion cubic meters, running from the Russian shore to Germany under the Baltic Sea. Gazprom will hold 50% in the project, while E.ON, BASF, Royal Dutch Shell, and OMV will own 10% each, and Engie will get a 9% stake.

The companies may appeal the authority’s decision within 14 days, and this term may be extended by another 14 days, UOKiK said.

In March, some media reported that prime ministers of the Czech Republic, Estonia, Hungary, Latvia, Poland, Slovakia, Romania and Lithuania sent a letter to European Commission’s President Jean-Claude Juncker, in which they opposed Nord Stream-2 saying the project bears the risk of geopolitical destabilization. German Chancellor Angela Merkel said in June the Nord Stream-2 pipeline is an economic project.

Nord Stream 2, the operator of the gas pipeline project, believes that the European Commission is unlikely to block the project.

Nord Stream 2’s manager for communications Jens Muller said in early July that Latvia, Lithuania, Estonia and Poland cannot block the project just because they do not want its implementation, and a final decision on Nord Stream-2 will be made by Russia, Germany, Sweden, Denmark and Finland.

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