Gazprom Forms New Subsidiary to Own a Portion of Nord Stream 2 Pipeline
Posted on 01/27/2022
The Russian state-owned company Gazprom has created a new subsidiary to own a portion of Nord Stream 2 pipeline, and that way comply with German regulation. Gazprom named the unit Gas for Europe GmbH. The gas transmission company Gas for Europe is to become the owner and operator of the German part of the Nord Stream 2 Pipeline. This includes the approximately 54-kilometre section of the pipeline in German territorial waters and the landfall facility in Lubmin, in the German federal state of Mecklenburg-Vorpommern. Gas for Europe is a subsidiary of Nord Stream 2 (Zug, Switzerland). The 54-kilometre section of the twin pipeline system was built during the second half of 2018.
In November 2021 the Bundesnetzagentur (German Federal Network Agency) stated that a subsidiary would need to be established as a precondition for moving forward with the procedure to certify an independent transmission operator. The company was founded to ensure compliance with the German Energy Industry Act (EnWG), which translates the EU Gas Directive into German law.
Pipeline Politics
In light of the accelerated phaseout of nuclear and coal-fired electricity, natural gas complements renewable energy sources. Nord Stream 2 was built to double the amount of gas flowing from Russia straight to Germany. This route bypasses the traditional transit route through Ukraine through a pipeline along the bed of the Baltic Sea.
Keywords: Gazprom National Oil Company.
