Germany Grants Nord Stream Pipeline Derogation From EU Gas Directive Rules

The development comes after the European Court of Justice rejected the claim of Nord Stream AG against European regulations regarding gas pipelines from third countries.

The German Federal Network Agency (Bundesnetzagentur) has made the Nord Stream gas pipeline exempt from the EU gas directive in Germany for 20 years, the pipeline operator said Wednesday.

"In line with the application, the derogation from the particular regulation applies to the pipeline section located on German territory (including German territorial waters) and is initially valid for 20 years, retroactively from the amended EnWG’s entry into force on 12 December 2019," Nord Stream AG said in a press release.

The development comes as the European Court of Justice rejected the claims of Nord Stream AG and Nord Stream 2 AG against EU regulations, according to which some rules applicable in the domestic market apply to pipelines from countries outside the union. 

The court ruled that the lawsuit of Nord Stream AG and Nord Stream 2 AG against the EU Gas Directive was not subject to consideration. 

The operator of the Nord Stream 2 gas pipeline construction company asked the European Court in July 2019 to annul measures that discriminated against the project. In its lawsuit, Nord Stream 2 requested the court “repeal Directive 2019/692 amending the EU Gas Directive due to a violation of the principles of the EU law on equal treatment.”