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Image header Agence Europe
Europe Daily Bulletin No. 12776
SECTORAL POLICIES / Energy

EU rules revising Gas Directive must apply to Nord Stream 2, says German court

On Wednesday 25 August, the Higher Regional Court of Düsseldorf (Germany) rejected the complaint filed by Nord Stream 2 AG against the German network regulator (BNA) after the latter refused to grant it an exemption from EU competition rules. 

Nord Stream 2 AG - the company established for the planning, construction and subsequent operation of the Nord Stream 2 gas pipeline from Russia to Germany via the Baltic Sea - sought an exemption from the EU Directive (2019/692) amending the EU rules on the natural gas market for the part of Nord Stream 2 that runs through German territory and has not yet been completely laid.

Under EU rules governing the natural gas market, each Member State must ensure that gas transmission networks are unbundled from production and supply.

However, Directive 2019/692 provides for the possibility of application for a derogation from this rule for pipelines between a Member State and a third country completed before 23 May 2019 (see EUROPE 12193/16).

In the case of Nord Stream 2, however, the German court ruled in favour of the German network regulator because the pipeline was not fully completed by this deadline. This decision is in line with orders of the EU General Court issued on 20 May 2020 (see EUROPE 12491/23).

Nord Stream 2 AG now has the possibility to appeal the decision of the Düsseldorf court to the German Supreme Court. (Original version in French by Damien Genicot)

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