No Progress on OPAL Pipeline Talks

Discussions between Gazprom and the European Commission on the Opal gas pipeline have failed to yield an agreement.

The Russian gas major is seeking a new round of negotiations.

"Gazprom is initiating new talks with the newly elected line-up of the European Commission when it is ready," commented Gazprom spokesman Sergei Kupriyanov

The European Union had delayed to the end of this month a decision on on whether to grant OPAL an exemption from the Third Energy Package.

Russian Energy Minister Alexander Novak suggest last week that a further delay was likely to the exemption which Moscow has sought since 2013.

“I believe this is not the last delay,” Novak commented “It seems to be (EU’s) principal decision not to consider this issue yet, although all the necessary agreements with the German regulator were reached in late 2013.”

The OPAL gas pipeline has an annual capacity of 36 billion cubic meters and runs along Germany’s eastern border, linking the Nord Stream pipeline to the Czech Republic thus bypassing Ukraine.

At present, Gazprom is permitted to only use of 50% of the existing capacity as under the rules of the Third Energy Package, Gazprom is required to reserve up to 50% of the OPAL gas pipeline’s capacities for gas transportation by independent gas suppliers.