Page 7 - FSUOGM Week 42 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Naftogaz wants say in Nord

Stream 2 certification

UKRAINE UKRAINIAN energy company Naftogaz has look at the essence of this legislation, it should
filed a request with German regulator Bun- be applied to the entire pipeline starting from its
Naftogaz says the desNetzAgentur (BNetzA) for permission to entry point on the border of the Russian Federa-
pipeline will violate EU participate in the certification of the Nord Stream tion,” Vitrenko said.
liberalisation rules. 2 pipeline, Naftogaz Executive Board Chairman He stressed the need for the German regula-
Yuriy Vitrenko announced on October 17 in a tor to assess the negative impact of Nord Stream
press release. 2 on competition, not only in Germany but also
“As a national company which defends in the wider European energy market.
national interests and leads the fight for Ukraine’s The transit deal is important to Ukraine,
energy security, Naftogaz submitted a request to which earns some $2bn a year in transit fees
German regulator BNetzA to participate in cer- from the Russian business of sending gas to its
tification proceedings on Nord Stream 2. Our European customers. However, that income
position is that Nord Stream 2 cannot be certified has already fallen from $3bn a year after the
because it does not fully comply with European Turkish Stream pipeline came online in Jan-
legislation,” he said. uary, bypassing Ukraine to the south. Deals
Nord Stream 2 was completed in September with Serbia and Hungary have diverted gas that
and Russia’s gas giant Gazprom announced on used to run through Ukraine that now runs
October 18 that the pipeline has been loaded through Turkish Stream. Vitrenko added that
with technical gas and is ready to go into the involvement of Naftogaz in the certification
operation. of Nord Stream 2 will result in greater trans-
Gas prices have soared as a result of “V” parency and will make it possible to consider
shaped market that went from a gas glut in 2020 arguments from all sides.
to being unable to meet soaring demand in 2021, “Why does this matter? Because the certifi-
as bne IntelliNews reported. Ukraine also claims cation process by BNetzA can determine that
that Gazprom is withholding gas from transit via the Nord Stream 2 pipeline operator does not
Ukraine in order to drive up prices and put pres- comply with European legislation, and therefore
sure on the EU to accelerate the certification of this pipeline cannot operate commercially. The
Nord Stream 2, which is only scheduled to hap- intervention by Naftogaz, if accepted, would
pen in January. oblige BNetzA to formally consider Naftogaz’s
Gazprom also announced this week that it has position and arguments. It will also mean that
booked no gas transit via Ukraine in November the German regulator is truly independent and
and will have to pay for capacity it has booked free from undue influence from certain political
but will not use under the terms of its new transit forces in Germany who openly sympathize with
deal signed in December 2019. Putin's project,” emphasized the Naftogaz CEO.
Vitrenko emphasized that Naftogaz is one Vitrenko noted that BNetzA began the certifi-
of the largest participants in the European gas cation process on September 8, following accept-
market. It buys large gas volumes and is directly ance of an application by the operator Nord
interested in ensuring a high level of competition Stream 2 AG. Under German law, BNetzA must
and full compliance with EU legislation. decide within four months whether the pipeline
“We aim to demonstrate to the German reg- should be certified and, in case of certification,
ulator that certification of Nord Stream 2 oper- which rules should apply.
ator would significantly harm competition on Vitrenko added that the Ukrainian side has
the German market, as well as on the markets already submitted a position document to the
of Slovakia, Hungary, the Czech Republic, and EU during the recent Ukraine-EU summit in
Austria,” he noted. Kyiv, which stated the need to involve Ukraine
The chairman of the Naftogaz executive as a stakeholder in the European Commission's
board added that there are currently a num- assessment of the Nord Stream 2 certification
ber of apparent inconsistencies relating to EU process. Naftogaz is closely coordinating with
requirements. the Ukrainian government to maximize the
“European energy law requires that the oper- involvement of all possible instruments to pro-
ator of a gas pipeline shall not be controlled by tect the interests of Ukraine.
the same company responsible for production BNetzA has already granted the Polish state
(in this case Gazprom, or to be more accurate, energy company Polskie Górnictwo Naftowe
Vladimir Putin, who stands behind Gazprom),” i Gazownictwo SA and its German subsidiary
Naftogaz pointed out in its statement. PGNiG Supply & Trading GmbH the right to
“European law also requires non-discrimi- participate in the certification proceedings for
natory third party access to the pipeline. If you Nord Stream 2.™

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