Germany Pushed Back Decision on Nord Stream 2 to July
On 16th December, the German regulator reviewing the certification of Nord Stream 2 gas pipeline will not make any decision before July 2022, announced the President of the regulatory board. The latest announcement is another setback for the Russia-led project and it could send European gas prices higher.
On 16th December, the German regulator reviewing the certification of Nord Stream 2 gas pipeline will not make any decision before July 2022, announced the President of the regulatory board. The latest announcement is another setback for the Russia-led project and it could send European gas prices higher.
The latest announcement has come after Germany suspended the the process of certification of the Nord Stream 2 gas pipeline in the last month.
Bundesnetzagentur, the Federal Network Agency of Germany announced the suspension of the procedure to certify the Nord Stream 2 AG as an independent transmission operator until an operator of the pipeline in Germany is incorporated under German law. The procedure was suspended after the German regulatory agency asked the Swiss-based pipeline operator, owned by Russian natural gas giant – Gazprom PJSC, to set up a German subsidiary to comply with the European regulations.
The president of Bundesnetzagentur, Jochen Homann said, “A decision won’t be made in the first half of 2022.” Mr. Homann also said that the agency is still waiting for the pipeline project operator Nord Stream 2 AG to submit documents.
The construction of the pipeline has been completed; however, the pipeline is still awaiting full regulatory clearance from Germany and a review by the European Union over its compliance with EU energy regulations.
It is also been reported that the inconsistent Russian gas supply to Europe in recent weeks is been used by Moscow as leverage to get approval for the Nord Stream 2 pipeline.
Earlier this week, the natural gas prices surged to near-record levels in Europe after Gemany hinted no signs of approving the Nord Stream 2 pipeline before the operators meet requirements under German law.
Europe’s energy crisis is set to get further worse with France’s EDF Group announcing on Thursday that it has closed two nuclear power plants. France gets more than 70% of its electricity from nuclear power plants and currently has 4 nuclear power plants closed, accounting for almost 13% of its current power availability. France is also a major electricity exporter its neighboring countries including the UK.
