Oman Daily Observer

EU rules could slow Russia’s Nord Stream 2

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The European Union reached a provisiona­l deal on new rules governing import gas pipelines, casting doubt over the operating structure of Russia’s planned Nord Stream 2. The Russian pipeline already faces uncertaint­y after Denmark’s potential ban on its planned route through its territoria­l waters and sanction threats by the United States. The draft law calls for all import pipelines to meet EU rules by not being directly owned by gas suppliers, applying nondiscrim­inatory tariffs and transparen­t reporting and opening at least 10 per cent of capacity to third parties.

EU Commission­er Arias Canete, who is responsibl­e for energy, said that the EU was closing a loophole as its dependency on natural gas imports increases. Exceptions were only possible under “strict procedures”, the EU said, adding it would play a decisive role.

“The new rules ensure that EU law will be applied to pipelines bringing gas to Europe and that everyone interested in selling gas to Europe must respect European energy law,” Canete said.

The deal reached by representa­tives of the European Commission and parliament and the 28 member states should lead to a new law in the coming months. EU countries would then have nine months to transpose it into national law.

The draft law could slow but not stop the project, led by Russian state energy firm Gazprom in partnershi­p with five Western firms Germany’s Uniper and BASF’S Wintershal­l unit, Anglo-dutch firm Shell, Austria’s OMV and France’s Engie.

“We will continue observing the process and we will study the new legislatio­n once it has been made available,” Nord Stream 2 said. “We refrain from speculatio­n about potential impacts of draft legislatio­n that has not yet been formally approved.”

Nord Stream 2 has divided the EU as Eastern European, Nordic and Baltic Sea countries see the 1,225 km pipeline, which is already under constructi­on, as increasing EU reliance on Moscow, while those in northern Europe, especially Germany, prioritise the economic benefits. Nord Stream 2 says the project will “make a positive contributi­on to the Energy Union goals by securing an additional route of gas supply”.

Denmark faces a foreign policy quandary as it has to decide whether the pipeline can go through its territoria­l waters after it passed new legislatio­n on pipelines allowing it to ban Nord Stream 2 on foreign policy and security grounds.

Moscow’s military posturing in and around the Baltic Sea has rattled nerves in the Nordic states and Denmark’s Foreign Minister Anders Samuelsen, who has been urging a common European stance, cautioned that a Danish decision on the route would still be based on a broader assessment in relation to its defence, security and foreign policy interests.

 ?? — AFP ?? A man standing on the pipe-laying ship Audacia looks on as tubes are laid for the North Stream 2 gas pipeline off the coast of the Baltic Sea island Ruegen, Germany.
— AFP A man standing on the pipe-laying ship Audacia looks on as tubes are laid for the North Stream 2 gas pipeline off the coast of the Baltic Sea island Ruegen, Germany.

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