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Nord Stream 2 appeals EU court dismissal of discrimination argument

July 29/2020

MOSCOW (MRC) -- Nord Stream 2 filed an appeal to the EU Court of Justice against the EU General Court's dismissal in May of the pipeline company's attempt to annul European law on pipelines from non-EU countries, reported S&P Global with reference to a spokesman for the company's statement July 28.

In July 2019, the Gazprom-owned company, which is building a 55 Bcm/year natural gas pipeline from Russia to Germany, brought an action before the EU General Court, requesting the amended EU Gas Directive be annulled due to infringement of European rules on equal treatment and proportionality.

On May 20, the court dismissed the lawsuit as inadmissible on procedural grounds.

"Nord Stream 2 does not share the procedural arguments of the court and maintains that the amendment of the Gas Directive constitutes an unlawful discrimination," a spokesman for Nord Stream 2 told S&P Global Platts.

Nord Stream 2 had hoped to bring the pipeline online by the end of 2019, but first permitting issues in Denmark and now US sanctions have delayed completion of the project.

The pipeline is seen as crucial to Russian plans to scale down use of the Ukrainian transit corridor from 2021 for supply of its gas to Europe.

"We want the General Court to review the content of our complaint," the spokesman said.

The next step would see the EU filing a rejoinder to Nord Stream 2's appeal, he said. A decision on the admissibility of the action by the EU Court of Justice would then be expected within the next 12 months.

On July 20, the developer said investments needed to complete the pipeline could be blocked if the US imposed sanctions on companies involved in the project.

Five European energy companies - France's Engie, Austria's OMV, Anglo-Dutch Shell, and Germany's Uniper and Wintershall Dea - have co-financed the project, each committing to pay Eur950 million (USD1.114 billion).

As MRC reported earlier, Denmark approved a request from the developer of the Nord Stream 2 gas pipeline from Russia to Germany for permission to lay the line in Danish waters using ships with anchors on July 6, 2020.

We remind that Gazprom neftekhim Salavat shut down its dioctyl phthalate (DOP) production for a scheduled maintenance. Market participants and a plant"s representative said Gazprom neftekhim Salavat took off-stream its DOP production for a long scheduled turnaround. The outage began on 12 May and lasted for about 30 day.

According to MRC's DataScope report, imports of suspension polyvinyl chloride (SPVC) into Russia totalled 13,800 tonnes in the first half of 2020, up by 5% year on year, whereas exports grew by 7% year on year.


mrcplast.com
Author:Margaret Volkova
Tags:Europe, PVC, PE, DOP, SPVC, extrusion coating, gas processing, petrochemistry, large-diameter pipes, Gazprom, OMV, Shell, Denmark, Russia, Ukraine.
Category:General News
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