POLAND ALLOWED, Participation In The NS2 Certification!


Poland Allowed
Fortuna Laying NS2

Recently Russia’s state-owned energy giant Gazprom announced the completion of the Nord Stream 2 pipeline construction, as such, adrift from flow installation onto certification that could take Europe and the German energy regulatory agency four months. However, Kyiv and Warsaw have remained opposed to the subject project which sees it as a tool of economic and security weapons. Howbeit, Poland allowed participation ironically meant more than reassurance over her fears of insecurity.

Since these two countries share similar concerns over the controversial flow installation, it’s evident as one would argue that their individual interest is proven paramount and this is based on the fact that both are core beneficiaries of Russian gas transit fees which could take a different dimension once NS2 becomes operational.

According to reports regarding the latest development, which has it that Poland’s state-owned oil and gas company Polskie Gornictwo Naftowe I Gazownictwo (PGNiG) has been allowed to participate in the certification proceedings for the multi-billion dollar pipeline project designed to deliver 55 billion cubic meters (Bcm) of Russian gas once it gets approved and operational.

The subject project which will transport liquefied natural gas from Russia to Germany through the Baltic Sea consists of two pipelines that stretch nearly 1,230km while bypassing Ukraine and Poland.

Prior to the latest development, German energy regulator BNetzA confirmed earlier that Nord Stream 2 AG has submitted all necessary documents needed for the project certification.

“Nord Stream 2 AG has applied for certification as an independent transmission operator under sections 10 to 10e of the Energy Industry Act and has now submitted all necessary documents”, BNetzA stated on its website.

As the pipeline holding company owned by Gazprom International Projects undertakes necessary pre-commissioning activities, it’s clear that the integration of Poland by the German Federal Network Agency (Bundesnetzagentur) is rather significant owing to the fact that Poland and Ukraine have opposed the project, which the aforementioned fears that the project will threaten the security of European countries, while Ukraine expects to lose $3bn annually from its gas transit fees.

Should the pipeline become weaponized! Berlin has promised to impose sanctions on Russia if Moscow threatens the energy security of its neighbors. While the U.S claims it will undermine Ukraine’s role in transiting energy, as well as make Europe dependent on Russian gas.

Regarding the latest development, PGNiG stated: “The German Federal Network Agency (Bundesnetzagentur, BNetzA) has granted Polskie Gornictwo Naftowe I Gazownictwo SA and its German subsidiary – PGNiG Supply & Trading GmbH participation in the certification proceedings for Nord Stream 2”.

Meanwhile, it was noted that Poland had previously stated that the Nord Stream 2 firm does not meet the formal and substantive requirements for certification in the preferential model of Independent Transmission Operator (ITO), Tass reported. Adding that “a positive decision of the BNetzA would put at risk the security of supply of the EU and member states”.

The PGNiG president of the management board ‘Pawel Majewski’ stated that “In the certification proceedings, we will also seek to ensure that the owner of Nord Stream 2 cannot avoid the application of ownership unbundling requirements, third-party access, and transparent tariffs, which take into account the costs of the entire pipeline”.

Although, there’re concerns over Europe’s energy crunch, which has resulted in International Energy Agency (IEA) call on Russia to supply more gas to the continent. And more significantly, the watchdog added: “The IEA believes that Russia could do more to increase gas availability to Europe and ensure storage is filled to adequate levels in preparation for the coming winter heating season”.

This comes following concerns in Europe over Moscow’s decision not to increase gas exports to Europe despite a spike in gas price.

  • What should we expect with Poland allowed participation?