On Wednesday 8 November, the European Commission put forward a proposal to amend the 2009 Gas Directive so as to clarify the regulatory framework for gas pipelines entering the EU from third countries, and thus to oversee Russia's controversial Nord Stream-2 project.
The goal of this amendment to Directive 2009/73/EC on the common rules for the EU's internal gas market (resulting from the third package on the liberalisation of energy markets) is to show clearly that the core principles of EU energy legislation (third-party access, tariff regulation, ownership unbundling and transparency) will apply to all gas pipelines to and from third countries up to the border of the EU's jurisdiction.
This will ensure that all major pipelines entering EU territory comply with EU rules, are operated under the same degree of transparency, are accessible to other operators and are operated efficiently, the European Commission states.
Furthermore, the Commission proposes to allow member states to be able to grant existing cross-border pipelines certain derogations from the application of the Gas Directive on a case-by-case basis, as long as such derogations are not detrimental to competition or security of supply.
"Ensuring that all major pipelines wholly or partly located in EU territory are operated efficiently under a regime of transparent regulatory oversight will diminish conflicts of interests between infrastructure operators and gas suppliers, and guarantee non-discriminatory tariff setting", the Commission states.
Once adopted by the European Parliament and EU Council, this amendment to the Gas Directive will also help strengthen competition between gas suppliers and consolidate the EU's security of supply, the Commission adds.
With this amendment to the Gas Directive, the Commission wants to bypass the stalled discussions at the Council on the Commission's request for a mandate, proposed on 9 June, to negotiate with Russia on a legal framework for using the Nord Stream-2 gas pipeline so as to ensure that its offshore section and its coastal part operate in compliance with the core principles of international law and EU energy and competition legislation (see EUROPE 11805).
"Our position is that a project as big as Nord Stream-2 cannot exist in a legal vacuum or on the basis of Russian law. We therefore asked the Council for a mandate to negotiate with Russia in order to see how EU law could be applied to this project. But, at the Council, the legal service thought the third energy package did not give 100% certainty as to the coverage of this type of infrastructure", European Commission Vice-President responsible for Energy Union Maroš Šefčovič told press.
"With the amendment (to the Gas Directive) that we propose, we bring clarity and legal certainty on the application of EU law to all gas pipelines in the EU, especially those from third countries. I hope the legal service will be satisfied and that this will make our request for a mandate more meaningful", Šefčovič went on.
"We hope a fast track procedure will be followed at the European Parliament and at the Council (to adopt the amendment to the Gas Directive). I am sure this will enable the situation at the Council to be clarified and that we will obtain its support for the mandate", he said. (Original version in French by Emmanuel Hagry)