Despite Opening German Subsidiary, Nord Stream 2 Certification Still on Hold
- January 28, 2022
- Posted by: Quatro Strategies
- Category: Politics
Nord Stream 2 pipeline operator said it completed part of the German regulatory requirements by opening a subsidiary in Germany. Despite the announcement, the certification process is still kept on pause. Nord Stream 2 said the subsidiary will be located in the German city of Schwerin and will own and operate the 54km part of the pipeline located in German territorial waters.
Nord Stream 2, dubbed the Europe’s most divisive energy project, is built to double the Russian gas directly delivered to Germany, bypassing the traditional transit route Ukraine.
It has received criticism from the United States and Ukraine, as well as within the European Union itself. Critics argue that the pipeline will increase Europe’s dependence on Russian energy.
The pipeline is completed in September and is ready to go, but hasn’t been able to because of the paused certification process from Bundesnetzagentur, Germany’s Federal Network Agency. The regulator suspended the certification process in November, requiring the operator to open a legal entity in Germany.
Despite meeting part of the requirements, the regulator said the certification of the project will remain paused until main assets and human resources are transferred to the subsidiary so that it will be able to check the unit’s documents for completeness.
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