Nord Stream 2 Says EU Gas Directive Discriminatory as German Watchdog Refuses Derogation

BERLIN (Sputnik) - The rejection of Nord Stream 2 request to have the pipeline stretch in Germany exempted from the EU Gas Directive shows the discriminatory nature of the regulations, the company said Friday.

Nord Stream 2 AG does not rule out appealing Germany's Federal Network Agency (BNA)'s decision in German courts.

The situation with the Gas Directive will not prevent the pipeline from being fully laid down, the company said.

Germany's Federal Network Agency (BNA) has rejected the derogation request and said that the pipeline would be "subject to German regulatory requirements and European rules on unbundling, network access and cost regulation" since it was not physically completed by 23 May 2019.

According to the press release, the BNA's decision on the Nord Stream 2 AG can be appealed within one month.

The Nord Stream 2 is a joint venture between Russia's Gazprom and five European companies. The 745-mile-long twin pipeline will carry up to 1.942 trillion cubic feet of gas per year from Russia to Germany through the territorial waters or exclusive economic zones of Denmark, Finland, Germany, Russia and Sweden.

A number of Western states, including the United States have long been opposing the project while Washington is trying to promote its liquefied natural gas to the European market. In December last year, the US included sanctions against companies involved in the project in the 2020 defence budget. Russia has vowed to complete the pipeline, albeit with a delay.