The
European Commission took steps on November 8 to extend European Union gas rules
to import pipelines, a move that the EC says is not aimed at preventing the
construction of any new gas pipelines such as Nord Stream-2.
To improve
the functioning of the EU internal energy market and enhance solidarity between
Member States, the Commission on November 8 proposed to amend the EU Gas
Directive of the Third Energy Package.
The Legal
Services of the Commission and of the Council have recently concluded that the
Gas Directive does not set out a comprehensive framework for gas pipelines to
and from third countries, the Commission said on November 8, adding that this
lack of a regulatory framework on the EU’ territory is detrimental to the
functioning of the internal energy market and the security of supply in the
Union.
The aim of
the amendment is to complete the existing Gas Directive and clarify 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, the Commission said, adding that this will ensure that all major
pipelines entering the EU territory comply with EU rules, are operated under
the same degree of transparency, are accessible to other operators and are
operated efficiently. Once the European Parliament and Council adopt the
amendment these changes will constitute a significant step towards the
completion of the Energy Union, the Commission said, adding that this
clarification will also contribute to meeting the goals of the EU gas market,
which include increasing competition between gas suppliers and providing a
boost to energy security in the EU.
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 said.
In addition
the Commission said the EC proposes to allow Member States to be able to grant
existing cross-border pipelines certain derogations from the application of the
Directive on a case-by-case basis, as long as such derogations are not
detrimental for competition or security of supply.
Impact
on Nord Stream-2
Regarding
the Nord Stream-2 pipeline from Russia to Germany, the Commission said on
November 8 that the proposal concerns all gas pipelines to and from third
countries and is not aimed at preventing the construction of any new gas
pipelines.
“The recent
legal and public debate concerning Nord Stream 2 only underscores the value of
providing legal clarity on this issue across the EU. The Gas Directive sets out
a clear regulatory framework for the operation of gas pipelines inside and on
the borders of the EU. These rules will apply to Nord Stream 2 the same way as
to all other projects. Project promoters should welcome the legal certainty
this proposal would create,” the Commission said.
Regarding
the impact of the proposal on the negotiation mandate on Nord Stream 2
requested earlier this year, the Commission noted that this proposal is
complementary to the Nord Stream 2 mandate. “Given that Union law cannot be
directly applied in third countries an agreement with Russia remains the best
instrument to establish a clear, coherent and stable regulatory framework for
the operation of Nord Stream 2. The Commission considers this modification of
the Gas Directive a priority since it will create legal clarity for all
third-country projects, by filling a legal gap. Nevertheless, the Commission
remains available to engage in negotiations on the operating conditions of Nord
Stream 2. The Commission will therefore not withdraw its proposal for a
negotiation mandate and awaits the Council’s decision on its earlier
recommendation to authorise negotiations with Russia,” the Commission noted.
Nord
Stream-2 said the corporation takes note of the Commission’s intention to
expand the scope of the Gas Directive to pipelines outside the EU’s internal
market and will analyse the content of this amendment as well as its impact on
the existing regulatory framework.
Sebastian
Sass
, an advisor to
Nord Stream 2 – EU Representative, told New Europe on November 8 that it
appears that the Commission will not provide a proper impact assessment which
would normally be expected according to the European Commission’s own Better
Regulation principles. “This legislative proposal seems to be a far-reaching
change to the scope of application of the EU’s energy laws, which would have
merited a thorough consultation of stakeholders,” Sass said.
He argued
that the European Commission’s proposal “would first create legal uncertainty
by causing the conflict of laws that the Commission has always claimed to be
worried about. It seems the Commission intends to continue pursuing its request
for a negotiation mandate in order to resolve that very conflict of laws that
would not exist without the new legislation. Such an approach is the
opposite of ‘legal clarity’”.
https://www.neweurope.eu/article/commission-takes-steps-extend-eu-gas-rules-import-pipelines/