Polish Oil and Gas Company (PGNiG) and its German subsidiary PGNiG Supply & Trading have been allowed to join a procedure in which Nord Stream 2 is seeking a derogation from the European Union’s Third Energy Package requirements.

The decision to include the Polish and German companies of the PGNiG Group in the derogation procedure was taken by the German energy market regulatory authority Bundesnetzagentur in response to the companies’ requests of February 19th 2020.

Nord Stream 2 AG, the company behind the Nord Stream 2 project, wants to use the pipeline to deliver gas from Russia to Germany without having to apply third-party access and unbundling rules or transparent market tariffs. To that end, on January 10th, 2020 Nord Stream 2 AG filed a derogation request with Bundesnetzagentur, although the latest amendment to the Gas Directive has made a derogation from EU law available solely to pipelines completed before the amendment’s entry into force (May 23, 2019).

“Polish Oil and Gas Company and the Polish government have consistently pointed to the adverse implications of Nord Stream 2 for the security of supply and competition in the gas market in Central and Eastern Europe. Including us in the procedure will help us to defend the interests of the PGNiG Group and gas consumers in the course of the derogation procedure. Nord Stream 2 must not be given preferential treatment,” commented Jerzy Kwieciński, President of the PGNiG Management Board.

In accordance with applicable law, the decision on whether to grant the derogation will be made by the German regulatory authority Bundesnetzagentur, with the proceedings to be mandatorily concluded by May 24, 2020.

About PGNiG

Polish Oil and Gas Company (PGNiG) deals with exploration and production of natural gas and crude oil and – through its branches and key companies from the Capital Group – with import, storage, sales, distribution of gaseous and liquid fuels, production of heat and electricity as well as geophysical and drilling services. Its subsidiaries and branches carry out exploration and production activities in Norway and Pakistan, gas sales in Germany and LNG trading through an office in London.

About Nord Stream 2

Nord Stream 2 is a planned pipeline through the Baltic Sea, which will transport natural gas over some 1,230 km from the world’s largest gas reserves in Russia via the most efficient route to consumers in Europe. Nord Stream 2 will largely follow the route and technical concept of the successful Nord Stream Pipeline. The new pipeline will have the capacity to transport 55 billion cubic metres of gas per year, enough to supply 26 million European households. This secure supply of natural gas with its low CO2 emissions will also contribute to Europe’s objective to have a more climate-friendly energy mix with gas substituting for coal in power generation and providing back-up for intermittent renewable sources of energy such as wind and solar power.