BRUSSELS/COPENHAGEN—The European Union (EU) reached a provisional deal Feb. 13 on new rules governing import gas pipelines, casting doubt over the operating structure of Russia’s planned Nord Stream 2.
The Russian pipeline already faces uncertainty after Denmark’s potential ban on its planned route through its territorial waters and sanction threats by the United States.
The draft law calls for all import pipelines to meet EU rules by not being directly owned by gas suppliers, applying non-discriminatory tariffs and transparent reporting and opening at least 10% of capacity to third parties.
EU Commissioner Arias Canete, who is responsible for energy, said that the EU was closing a loophole as its dependency on natural gas imports increases.
Exceptions were only possible under “strict procedures,” the European Commission said, adding it would play a decisive role.
“The new rules ensure that EU law will be applied to pipelines bringing gas to Europe and that everyone interested in selling gas to Europe must respect European energy law,” Canete said in a statement.
The deal reached by representatives of the European Commission and parliament and the 28 member states should lead to a new law in the coming months. EU countries would then have nine months to transpose it into national law.
The draft law could slow but not stop the project, led by Russian state energy firm Gazprom in partnership with five Western firms—Germany’s Uniper and BASF’s Wintershall unit, Anglo-Dutch firm Shell, Austria’s OMV and France’s Engie.
“We will continue observing the process and we will study the new legislation once it has been made available,” Nord Stream 2 said in a statement.
“We refrain from speculation about potential impacts of draft legislation that has not yet been formally approved.”
Nord Stream 2 has divided the EU as Eastern European, Nordic and Baltic Sea countries see the 760-mile pipeline, which is already under construction, as increasing EU reliance on Moscow, while those in northern Europe, especially Germany, prioritize the economic benefits.
Nord Stream 2 says the project will “make a positive contribution to the Energy Union goals by securing an additional route of gas supply.”
Denmark faces a foreign policy quandary as it has to decide whether the pipeline can go through its territorial waters after it passed new legislation on pipelines allowing it to ban Nord Stream 2 on foreign policy and security grounds.
Moscow’s military posturing in and around the Baltic Sea has rattled nerves in the Nordic states and Denmark’s Foreign Minister Anders Samuelsen, who has urged a common European stance, cautioned that a Danish decision on the route would still be based on a broader assessment in relation to its defense, security and foreign policy interests.
Major operators in the Permian Basin are optimizing spacing strategies in pursuit of increasing well productivity, Enverus analysts say.
March 2020: Phantom Field-Wolfcamp Discovery By EOG: 8.318 Mbbl Of Oil, 14.702 MMcf Of Gas Per Day
Russia came in as China's largest crude oil supplier in December, cementing the top spot for all of 2018 for a third year in a row ahead of rival Saudi Arabia, customs data showed on Jan. 25.