UPDATE: Nord Stream 2 AG wants EU Court to cancel discrimination vs pipe

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MOSCOW, Jul 26 (PRIME) -- Nord Stream 2 AG, the project company that builds the Nord Stream-2 natural gas pipeline, has filed a suit to the E.U. General Court asking it to cancel discriminatory measures against the project, the company said in a statement on Friday.

“Nord Stream 2 AG brought an action for annulment before the General Court. Nord Stream 2 requests that directive…amending the E.U. Gas Directive be annulled because of an infringement of the E.U. law principles of equal treatment and proportionality,” the company said.

“We as a prudent investor are committed to protecting our investments. But the amendment to the Gas Directive is not only harmful to Nord Stream 2. Such obvious discrimination against an individual commercial investment also undermines the ability of the EU’s internal market to attract investments for making the energy transition a reality,” the company said quoting CEO Matthias Warnig.

A spokesperson for the European Commission told PRIME that the authority thinks these amendments correspond to the international commitments of the E.U.

“The E.U. now has strict rules that are applied to all pipelines used to import gas to the European market. The commission thinks that the Directive…is fully compliant with international commitments of the E.U.,” the spokesperson said.

Nord Stream 2 AG also said it may protect its rights under international law by filing a separate motion to an arbitration court against the E.U.

“Furthermore, Nord Stream 2 reserves the option to defend its rights under international law by proceeding separately with arbitration against the E.U. pursuant to the investment protection guarantees of the Energy Charter Treaty,” the company said.

Amendments to the E.U. Gas Directive came in force in May, making pipelines running from third countries to the E.U. follow new rules, including a so-called unbundling rule that separates production and transportation of gas. The European Commission said then that the amendments were not created specifically against the Nord Stream-2 pipe, the contracts on which were signed before introduction of the amendments.

Nord Stream 2 AG launched a three-month consultation period with the commission in April in order to reach an amicable deal on the matter, but the sides failed to reach an agreement, the company said.

The Nord Stream-2 project 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. Gazprom is implementing the project together with Germany’s E.ON and BASF, Royal Dutch Shell, OMV, and France’s Engie. The length of the pipeline’s route exceeds 1,200 kilometers.

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