• Natural Gas News

    Opal Line Use 'Back to Half': Regulator

Summary

Gazprom has had to reduce its use of the Opal pipeline to the 50% limit allowed earlier, according to the German regulator Bundesnetzagentur.

by: William Powell

Posted in:

Natural Gas & LNG News, Europe, Corporate, Litigation, Import/Export, Political, Regulation, Infrastructure, Pipelines, OPAL, Germany, Poland, Russia

Opal Line Use 'Back to Half': Regulator

Gazprom has had to reduce its use of the Opal pipeline back to the 50% limit set around seven years ago by the European Commission (EC), according to the German regulator Bundesnetzagentur. A spokesman told NGW January 5 that a court in Dusseldorf was to decide the matter on an urgent basis but that there was no statutory deadline even in urgent cases: it depends on when the court receives all the information it needs, he said.

Gazprom had reportedly used more than even the maximum 80% it was allowed to use in December, following a decision by the EC in October, although the Russian giant did not auction any capacity for that month, NGW understands. The EC decision is now being challenged in the European Court of Justice (ECJ), following a claim by Polish state-run gas supplier PGNiG that it contravened a number of important European Union principles.

However Gazprom did launch an auction December 19 for January 2017 and nearly all the capacity was sold. This was before the suspension order by the European court. So, while the case is being decided, there will be no new auctions nor will as much gas flow as planned.

PGNiG CEO, Piotr Wozniak

(Credit: PGNiG)

Gazprom's use of Opal is distinct from its proposals to settle the anti-trust case which the European Commission is deciding. The EC told NGW that it has received proposed commitments from Gazprom and said that it will assess if they address, “in a forward looking manner, the EC's competition concerns in line with EU antitrust rules. To be effective, the commitments would have to ensure the free flow of gas in central and eastern Europe at competitive prices."

It will not publish the commitments themselves, it said.

 

William Powell