Gas: Italy shifts to Algeria for gas procurement

Eager to divest itself von Russian dependance on natural gas, Italy has switched in a precipitous move to Algeria as a supplier just days after the russian invasion into Ukraine. Italy and especially its energy giant ENI have deep and decade-old ties to Algeria. Even major investements by ENI and acquisitions of BP shares on oil fields are under discussion, Le Monde: 

Algeria is showing a diplomatic upturn with Italy which takes on a particular meaning as Europe is prospecting for alternatives to Russian gas, war in Ukraine obliges. The recent ballets of visits by Italian officials to Algiers, where the red carpet is rolled out at the energy giant Ente Nazionale Idrocarburi (ENI) – already historically well treated – testify to a most cordial atmosphere. Italy had become, in recent years, increasingly dependent on Russian energy supplies (40% of its gas imports, or about 30 billion cubic meters [m3]). It is now more than ever eyeing Algerian gas, while it is imperative for it to diversify its purchases abroad, particularly in the Mediterranean.

The overall economic relationship between the two countries has certainly always been healthy. Italy is Algeria's third supplier (behind China and France) and its first customer (ahead of France and Spain). It is also the first foreign investor, a status due to the weight that ENI represents on Algerian soil. History is a big part of it. The tutelary figure of the historic leader of the company, Enrico Mattei (1906-1962), a Christian Democrat politician who was a great promoter of independent Algeria (who died in 1962 after a mysterious plane crash), has always acted bridge between the two countries.

“ENI is a company considered to be a friend of Algeria, a friend of the Algerian revolution at the time, notes Akram Kharief, Algerian security expert and founder of the Menadefense site. It is very difficult to compete with her. In recent weeks, the glorification in the Algerian press of this memory has reached unprecedented levels. "The esteem for Italy is felt among the people of the people", could we read, on March 30, in an editorial of the official daily El Moudjahid.

The staging, in Algiers, of friendship with Italy does not date from the war in Ukraine. The distinguished welcome reserved in the Algerian capital for the Italian President of the Republic, Sergio Mattarella, during a visit in November 2021, had already sent a first message in the midst of the crisis between Algiers and Paris. The recent Algerian-Spanish turbulence on the Western Sahara issue – following concessions made by Madrid to Rabat – has added to the ambient Italophilia in Algeria. The remarks of the boss of the Algerian public company Sonatrach, Toufik Hakkar, on April 1, evoking the possibility of "recalculating" the price of gas sold to the Spaniards, announce a probable changeover in the long term of part of the supplies from Spain to Italy.

This is fitting, at a time of Rome's strategic shift vis-à-vis Russian gas dictated by urgency. As usual, Italian diplomacy negotiated it in a few hours, with a mixture of agility and pragmatism. Monday, February 28, barely four days after the start of the Russian offensive in Ukraine, the Italian Foreign Minister, Luigi Di Maio, was in Algiers, accompanied in particular by the managing director of the energy giant ENI, Claudio Descalzi, to to assess the possibility of increasing gas imports. In energy matters, Italian diplomacy and ENI are used to moving forward together.

Exploitation of new deposits

In the Algerian case, the calculation is simple. Algeria is the country's second largest supplier (21 billion m³), ​​and the Transmed gas pipeline transporting gas to Sicily – also called the Enrico Mattei gas pipeline – is not operating at full capacity (its capacity is 30 billion m³ per year) . What hope, in the short and medium term, additional deliveries.

The Italian minister's trip to Algiers was only the start of a tour centered on energy issues, which took the head of Italian diplomacy, in March, to Africa, the Arabo-Persian Gulf and Azerbaijan. But Algeria is considered, within Italian diplomacy, with particular attention.

So Claudio Descalzi was back in Algeria on April 3 to meet once again the CEO of the Algerian public energy giant, Sonatrach, ENI's historic partner, to discuss the increases in deliveries in the short term and, at a further afield, the exploitation of new deposits. In particular, it is a question of “accelerating” the implementation of joint projects in the region of Berkine Sud, on the border with Tunisia. According to the Algerian press, ENI is also negotiating the acquisition of assets from British Petroleum (BP) in two major gas projects in In Saleh (Centre) and In Amenas (East). According to unconfirmed information, Sonatrach is also discussing the acquisition of ENI assets in Russia.

Be that as it may, the prospect for Algeria to deliver significant quantities of gas to Italy is long term. In the immediate term, its production and transport potential is limited. "Algeria's ability to offset Russian gas for Europeans is questionable," says Olivier Appert, energy and climate center adviser at the French Institute for International Relations (IFRI). Faced with the aging of its infrastructure and the flight of its domestic consumption, Algeria has in fact suffered from a continuous decline in its gas exports, which have fallen from 64 billion m3 in 2005 to 41 billion in 2020. substantial investments to reverse the curve. ENI and the Italians are in the running.

Gas: Spain positions itself as gas hub; wants to revitalize MidCat pipeline

 In view of the war in Ukraine and the sudden turnaround in gas procurement Spain positions itself as gas hub. Indeed it has a direct gas pipeline to Algeria (Medgaz) and has also the biggest LNG stocking capacity in Europe. Spanish government suggest the reconsideration of the MidCat pipeline (planned from Portugal, through Spain and the Pyrenees to France) that was abandoned in 2019 to compensate the unwelcomed gas from Russia, Le Monde:

While Europe seeks to reduce its dependence on Russian gas, Spain intends to position itself as a strategic "hub" to diversify the continent's supply sources. "We can be an alternative to Russian gas," insisted the Ministry of Foreign Affairs, from the beginning of February, even before the invasion in Ukraine. The idea has since caught on. “With its great energy capacity and its great experience in renewable energies, Spain can and will play an important role in supplying Europe, finally confirmed the President of the European Commission, Ursula von der Leyen, on a visit to Madrid. , March 5. And, for this, we must work in the interconnections between the Iberian Peninsula and the rest of the European Union [EU]. »

Nord Stream 2: ukrainian CEO of Naftogaz wary of russian intentions

 After the change of government in Germany, ukrainian officials await if there is a new approach concerning the Nord Stream 2 pipeline. However for Naftogaz-CEO Yuri Vitrenko there is no change to expect from Russia. An interview with german newspaper BILD:

The traffic light-coalition is arguing about a contaminated legacy from Merkel and Groko days: the Nord Stream 2 gas pipeline.

▶ ︎ The Greens want to prevent it, see it as a political project by the Kremlin to blackmail Eastern Europe and especially Ukraine.

▶ ︎ The SPD is traditionally in favor of the project in which its ex-boss Gerhard Schröder is the boss.

Apart from Germany and Austria, nobody in the EU is in favor of the Gazprom pipeline. And Ukraine in particular, which has hitherto been the main transit country for Kremlin gas, warns.

BILD spoke to Yuriy Vitrenko (45), the head of the Ukrainian state gas company Naftogaz.

Nord Stream 2: Biden administration piles pressure on new german government

 The US government is losing patience with german officials who - to date - do not want to commit to a dropping of the contentious pipeline in case of a russian aggression against Ukraine. From the US viewpoint it remains to be if newly appointed foreign secretary Annalena Baerbock gets her way and if new german chancellor Olaf Scholz can preserve his independence towards the general position of his social-democratic party who supports this project, writes WELT:

Seldom has a Chancellor found himself caught between two superpowers so quickly. Not only congratulations for Olaf Scholz (SPD) came from Washington and Moscow, but also tangible pressure. The US wants to deter Russia from invading Ukraine - and, parallel to Scholz's inauguration, made it clear that they consider the federal government to be part of the problem.

"We have had intensive discussions with both the outgoing and the new German government about the issue of Nord Stream 2 in connection with a possible invasion," said US President Joe Biden's national security advisor, Jake Sullivan. "If Vladimir Putin wants gas to flow through this pipeline, he may not want to take the risk of invading Ukraine."

The message: If Putin attacks Ukraine, Berlin must stop the German-Russian pipeline. The US is fed up with Germany's geostrategic ghost ride. Putin had tightened Russia's course against Europe over two decades - but the German chancellors stuck to the billion-dollar pipeline project.

OPAL: Germany loses appeal; possible repercussions on Nord Stream 2

 As well known, Germany has lodged an appeal against the EUGC decision concerning the quantity of gas passed through the OPAL pipeline. The ECJ rejected this appeal

Handelsblatt writes:

In the dispute over the expansion of Russian gas supplies, Germany suffered a defeat before the European Court of Justice (ECJ). In a judgment published on Thursday, the ECJ rejected Germany's appeal against a decision by the EU court. Specifically, it is about larger delivery volumes through the Opal pipeline, an extension of the first Nord Stream pipeline in the Baltic Sea, which has been in operation since 2011 and through which Russian gas is transported to Europe (Case C-848/19).

Poland had filed a lawsuit against the larger delivery quantities before the General Court of the European Union (EU-G), arguing that they endangered the country's security of supply and violated the principle of energy solidarity. The court upheld the action, whereupon Germany appealed to the ECJ, which has now been rejected.

In September 2019, Poland had a decision by the EU Commission stopped at first instance, which allowed the Russian Gazprom group to make greater use of the Opal pipeline (case T-883/16). Gazprom was originally only allowed to use half the line capacity in order not to put other suppliers at a disadvantage. With a resolution from 2016, the EU Commission allowed Gazprom to significantly increase delivery volumes at the request of the Federal Network Agency. The ECJ has now confirmed that this decision was rightly declared null and void by the EU-G.

A previously published opinion by the Court of Justice stated that Germany "essentially asserts that energy solidarity is merely a political term and not a legal criterion". Accordingly, no direct rights and obligations could be derived from it.

The supreme court of the EU is now contradicting this. Since the principle of solidarity underlies all the objectives of the Union's energy policy, it cannot be assumed that it does not produce any binding legal effects. The principle includes rights and obligations for EU countries.

Nord Stream 2: possible legal obstacles after completion

 In a very interesting paper Prof. Alan Riley explains that the contentious pipeline "Nord Stream 2" might not be operational even after constructional completion. The project may face legal counteraction.

Quote:

"However, even if a deal is not possible and Nord Stream 2 is technically completed despite the threat of US sanctions, it is far from clear that the pipeline can enter into operation any time soon. There is the prospect of a significant EU law battle at least over the application of the liberalization provisions of the Gas Directive 2009"

You can read the rest of the piece via the below link:

https://huri.harvard.edu/files/huri/files/riley_-_nord_stream_2.pdf?m=1618864282

Gazprom: many fires to fight

As the future of sanction-impacted pipeline Nord Stream 2 lies in the dark, Gazpromy faces problems on china-bound pipelines and struggles with low gas prices and liabilities, writes german newspaper WELT:

Just a few years ago, nobody at the Russian gas giant Gazprom suspected that a ship laying pipelines could become a symbol of the risk and instability of entrepreneurial success. “Fortuna” - the term used by the ancient Romans for the changeable fate - is the name of the Russian barge that is supposed to complete the controversial Baltic Sea gas pipeline Nord Stream 2.

It remains to be seen whether he will ultimately be able to build the 100 or more kilometers of pipeline that are still missing. On December 28, the ship completed the 2.6-kilometer section in German waters. In the middle of January the plan is to continue in Danish waters.

But the US, which had been hindering the work with threatened sanctions for the whole of last year, has prepared further sanctions so that Gazprom's European allies can stop the project. Europe would become too dependent on Russian gas, they say in Washington. The US also wants to sell its own gas in Europe.

Nord Stream 2: did german Federal Agency secretely grant permit for resumption of construction works?

 German newspaper BILD has learned from german association Deutsche Umwelthilfe (Environmental Action Germany) that the Bundesamt für Seeschiffahrt und Hydrographie (Federal Agency for maritime navigation and hydrography) has granted a permit to resume the halted construction of the contentious pipeline prior to concluding about objections made by the non-profit environmental association. Environmental Action Germany suspects foul play and claims that the Federal Agency is unter pressure by the german government that wants the pipeline completed by all means before sanctions of the incoming Biden administration become effective:

How far will German authorities go to comply with the wishes of Moscow and Berlin to realize the Putin pipeline Nord Stream 2 as quickly as possible?

So far, German authorities have always denied that they have been influenced in the approval process for the Russian prestige project by political actors and lobbyists of the Gazprom subsidiary Nord Stream 2 AG. The approval process is being conducted in accordance with "law and order" and is "open-ended," according to the assurances.

Nord Stream 2: pipe-laying ship "Akademik Cherskiy" resumes construction work

The russian pipe-laying ship "Akademik Cherskiy", that replaces the vessel of shipping company "Allseas" that withdrew of fear for sanctions, has left the port of Kaliningrad to resume the last stretch of the pipeline. Meanwhile US lawmakers lace a package of sanction measures, writes german newspaper BILD:

Dramatic year-end spurt around the Putin Nordstream 2 pipeline!

In the geopolitically risky billion dollar game around the Baltic Sea pipeline Nordstream 2, the events in Moscow, Berlin and Washington, D.C.
Until new sanctions come into force on January 1st and a new US president is sworn in a few weeks later, all three countries want to create facts that are as robust as possible. According to BILD information, the federal government is once again playing with the wrong cards, and soon-to-be President Joe Biden could tip the scales.

On Thursday evening (December 3), Russia’s state-owned company Gazprom ordered the pipe-laying ship “Akademik Tscherski” to leave Kaliningrad Bay. The ship is currently heading for Germany's exclusive economic zone off the coast of Mecklenburg-Western Pomerania. The controversial pipe that was originally supposed to have been transporting Russian gas to Germany since the beginning of the year is to be continued there on Saturday.
But according to the responsible Federal Maritime and Hydrographic Agency (BSH), the ship only has permission to lay a few of the 160 kilometers that are still missing - and only for three weeks. A BSH spokeswoman on Friday (December 4) to BILD: "The construction work in December (two 2.6 kilometers) with ships positioned at anchor is covered by the 2018 approval and the approval of the BSH from October 2020."

Nord Stream 2: local prime minister creates foundation to bypass US-sanctions

 Staunch supporter of the infamous pipeline Nord Stream 2, prime minister of the land Mecklenburg-Vorpommern Manuela Schwesig, does her utmost to complete the pipeline while avoiding US-sanctions on german companies involved in the project. A foundation was created that acts as a target of the sanctions and leaves the companies involved unharmed, writes german newspaper BILD.

Can a German cheat foundation save Russia's prestige project “Nord Stream 2” at the last second?

According to BILD information, the State Chancellery of Mecklenburg-Western Pomerania, headed by Prime Minister Manuela Schwesig (46, SPD), is working quickly on a tool to circumvent existing US sanctions against the Gazprom project “Nord Stream 2” that will be added from January.

For this purpose, a “Stiftung Klimaschutz MV” is to be established in the next few days. A ruse, because, according to BILD information, the alleged climate foundation should shortly afterwards identify the almost finished Russian pipe as the "most important component for environmental protection in Mecklenburg-Western Pomerania" and then do everything in its power to contribute to the completion of the project.

Mediterranean: when exploration of gas fields hurtles with hegemonic ambitions

 The projected EastMed pipeline which is scheduled for construction start in 2023 is jeopardised by expansionist aspirations of Turkey. Israel has ordered four stealth capable corvettes at a german shipyard. The first one has just been delivered. Some observers draw parallels to arm races in the wake of WW1 writes german newspaper WELT:

Israel's security is German reasons of state - Angela Merkel's confession to the Knesset is probably the most frequently quoted sentence by a German head of government in Israel. Now Germany's responsibility for the Jewish state is to become visible: On November 11, the Kiel-built warship “INS Magen” (Hebrew for protective shield) will be handed over to the Israeli Navy.

It is the first of four Sa’ar 6-class corvettes that the Israeli government has ordered from ThyssenKrupp. According to the Ministry of Defense, the federal government is financing around a third of the project with 115 million euros.

Nord Stream 2: Gazprom's options after denial of exemptions by BNetzA

An interesting analysis of the options left to Gazprom after it is clear that the Nord Stream 2 pipeline will have to comply with the EU-gas-directive:

"Germany’s regulatory office Bundesnetzagentur announced it decided not to award derogation to Nord Stream 2, a gas pipeline connecting Germany and Russia, from the amended EU Gas Directive. According to the law, gas pipelines from outside of the EU that were not completed before 23 May 2019 need to have an independent operator, independently set tariffs and provide access to third parties. Gazprom, which owns the operator of the NS2 project, tried to argue that investment decisions about the pipeline had been made before 23 May last year, which meant the project had been somehow completed from the point of view of financing. Germany decided the gas pipeline had not been finished, which, by the way, was in line with common sense because a gas pipeline that does not connect point A to B cannot transmit gas, and Nord Stream’s Danish section is still under construction and is waiting for a permit from the Danish Energy Agency. The wait may be long, as the Agency had already delayed the project in the past when it took its time to make a previous decision. However, Russia may question the BnetzA ruling in court, similarly to what Poland’s PGNiG wanted to do if the decision had been in favor of Nord Stream 2. The court case may take place while the gas pipeline is allowed to operate, or not. This remains to be seen.

BnetzA’s decision means Nord Stream 2 AG will have to implement EU regulations with regard to the disputed pipeline. This is a hard nut to crack for Gazprom and a conflict between Russian and EU law. Russia granted Gazprom legal exclusivity over gas exports via gas pipelines, including Nord Stream 2, so it does not offer access to its pipelines to third parties. Additionally, Gazprom owns NS2 AG and is the pipe’s only gas provider, which means it would be responsible for setting tariffs. This goes against ownership unbundling required by the EU law.

Now Gazprom may either sell the pipeline, or hand over its operation to an “independent” company, that would guarantee fair transmission tariffs. Since Nord Stream 2 AG has a full share ownership it is not allowed to be the operator, but it remains to be seen whether this role could be played by a daughter company of the giant from Petersburg, which would hold a minority share. Perhaps the Russian-German company Gascade could become the pipe’s operator. Gascade is a joint venture of Gazprom and BASF that operates gas pipelines in east Germany, including OPAL, which is an onshore extension of Nord Stream, and EUGAL (in construction), an onshore leg of Nord Stream 2."

You can read the rest of the piece via the below link:

https://biznesalert.com/russia-eu-law-nord-stream-2-derogation-gas-directive/ 

German Federal Network Agency: no derogation from gas directive for Nord Stream 2

https://www.bundesnetzagentur.de/EN/Service-Funktionen/RulingChambers/Chamber7/BK7-20-0004EN/BK7-20-0004EN.html?nn=269738The Federal Network Agency of Germany (Bundesnetzagentur) has decided in a decree yet to be published that it won't grant any derogation from the EU-Gas-directive to the controversial Nord Stream 2 pipeline:

"The Bundesnetzagentur has today rejected the application of Nord Stream 2 AG for derogation from regulation for the section of the Nord Stream 2 pipeline located in German territory.

Pipeline not completed

The section of a gas interconnector involving a third country located in German territory can be granted a derogation from regulatory requirements upon application and under certain conditions. For this, it is necessary that the gas interconnector was completed before 23 May 2019.

Since the Nord Stream 2 pipeline had not been fully laid by 23 May 2019, the Bundesnetzagentur has rejected the application for derogation made by Nord Stream 2 AG. When it is put into operation, therefore, Nord Stream 2 will be subject to German regulatory requirements and European rules on unbundling, network access and cost regulation.

The responsible ruling chamber of the Bundesnetzagentur understands the term "completion" in a constructional/technical sense. The applicant, by contrast, believes it to mean completion in an economically functional sense and refers to the investment decision, which was made well before 23 May 2019.

Nord Stream 2 AG can appeal and have today's decision examined before a court.

Responses to the proceedings

All European Union Member States had the opportunity to examine Nord Stream 2 AG's application, with its annexes, and to submit a response. Responses to the consultation were taken into account in the decision, as was the joint statement submitted by PGNiG S.A. and PGNiG Supply & Trading GmbH, which were summoned to the proceedings upon application in a decision of 18 March 2020.

Neither any of the Member States nor the parties summoned shared the viewpoint of Nord Stream 2 AG as regards the term "completion".

Background

Since the amendment of the Gas Directive 2009/73/EC, the European regulatory provisions have also applied to interconnectors between a Member State and a third country. The new European provisions were transposed in the German Energy Industry Act (EnWG), which entered into force on 12 December 2019.

Subject to the conditions of the amended section 28b EnWG, the section of a gas interconnector with third country involvement located in German territory is to be granted a derogation from regulatory requirements provided it was completed by the relevant date and the other conditions under subsection 1 of the provision have been met.

A version of the decision from which confidential information has been removed will be published shortly at www.bundesnetzagentur.de/BK7-20-004 under the file number BK7-20-004.."

More information to come on the site of the Bundesnetzagentur.

https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/EN/2020/20200515_NordStream2.html;jsessionid=D3E9ED2D32B0B4F2C4D2206AFCD3B401?nn=265794

EastMed pipeline on the starting block

Greek newspaper Ekathimerini writes:

"A deal for an undersea pipeline to carry gas from new offshore deposits in the southeastern Mediterranean to continental Europe signed by Greece, Cyprus and Israel earlier in the year was ratified by a wide majority in a parliamentary committee on Monday evening.

Signed in Athens by the leaders of Greece, Cyprus, and Israel in January 2020, the EastMed pipeline accord passed the first stage ahead of ratification with the votes of ruling New Democracy, main opposition SYRIZA and Movement for Change (KINAL)."

You can read the rest of the piece via the below link:

https://www.ekathimerini.com/252574/article/ekathimerini/news/eastmed-pipeline-deal-sails-through-parliamentary-committee

TurkStream: Turkeys role as gas transit hub

With the TurkStream pipeline under construction Turkey is about to gain a pivotal role in the gas import of the EU.

TurkStream's pathway begins in russian Anapa on the Black Sea coast to the thrace part of Turkey and then moving through Bulgaria, Serbia, Hungary to the Baumgarten gas hub in Austria.

This pipeline will yet again raise the import of natural gas from russian sources  - under circumvention of countries like Ukraine -  while it increases the dependency of Turkey from russian imports as well.

German newspaper "Welt" writes:

"Half of the total capacity of the pipeline, 15.75 million cubic meters per year, is destined for transit to Europe. 

In the medium term, the pipeline is to bring Russian gas to Austria via Bulgaria, Serbia and Hungary, to the largest European natural gas hub in Baumgarten on the Slovakian border. The new pipeline from the Turkish territory through Bulgaria and Serbia has already been completed. 

Contrary to the EU goal of diversifying gas imports and increasing energy security - for example by promoting liquefied petroleum gas imports and the requirements for decoupling production and pipeline ownership - the countries of Southeast Europe are even further expanding their dependence on Russia with TurkStream. 

Putin lures the countries with transit fees and flatters their regional ambitions. For example, in the case of Bulgaria, which wants to establish itself as an important natural gas hub for the Balkans, but has so far only imported Russian gas. 

At the same time, TurkStream is a competition project for the EU-partially financed Southern Gas Corridor, which is to bring ten billion cubic meters of gas annually to the EU via the Transanatolian Pipeline (TANAP) from Azerbaijani offshore fields in the Caspian Sea. 

While Bulgaria's dream of the "Balkan Gas Hub" can still fail due to EU regulations, Turkey has established itself with TurkStream as an energy hub - this has long been Erdogan's plan. 

"Turkey is striving to become an energy hub where buyers and sellers meet and where prices are set," said the Turkish energy minister Fatih Dönmez in November 2018. 

For this, Erdogan even appears to be ready to increase its own energy dependency on Russia. Turkey has virtually no gas reserves of its own and is dependent on imports. Therefore, just like Europe, the country had tried in the past to diversify its own energy supply and to make itself less dependent on Russia."

EastMed: a pipeline from Israel to Italy

On Thursday January 2nd 2020, Greece, Cyprus and Israel signed an agreement to build the EastMed pipeline to transport natural gas from the Leviathan field via Cyprus and Crete to mainland Greece and on to Italy. Cypriot gas fields are also to be connected.

The construction of the more than 1,800 km long tube is being supported by the EU, which gave the project the privileged status of "Project of Common Interest".

However this project means a turning away from the Eastern Mediterranean Gas Forum (EMGF) that involved Egypt, Israel, Jordan, Cyprus, Italy and members of the Palestinian National Authority. 

Also turkish president Erdogang wants to have his say since Turkey stakes out claims on part in Cyprus.

You can read the rest of the piece via the below link:

https://www.welt.de/wirtschaft/article204725766/EastMed-Das-ist-Europas-neue-Problem-Pipeline.html?wtrid=onsite.onsitesearch

How to react on the impending completion of Nord Stream 2

The Atlantic Council has asked four energy experts about their opinion on what are the sensible reactions to the imminent completion of natural gas pipeline Nord Stream 2 after the last obstacle has been cleared.

Olga Khakova, associate director for European energy security at the Atlantic Council’s Global Energy Center has a useful approach:

"This is a critical moment for the European Commission to flex its enforcement muscles and ensure that Nord Stream 2 fully complies with the amended gas directive, which expands European Union rules to cover offshore pipelines from third-party countries entering the union. The EU law (the Third Energy Package) entails pipeline and gas ownership unbundling, third-party access to the pipeline, and transparent, nondiscriminatory price tariffs.  If the Commission fully implements the rules, Gazprom would have to make substantial changes to comply with the amendment, which will lead to further project delays. Having to operate under transparent and competitive EU market rules weakens Gazprom’s ability to use energy as a geopolitical lever."

You can read the rest of the piece via the below link:

https://atlanticcouncil.org/blogs/ukrainealert/is-nord-stream-2-a-done-deal/