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Gazprom cannot supply gas via OPAL pipeline above capacity set by court, says regulator

Gazprom won’t be able to take part in the auction for OPAL pipeline capacities on September 16, according to the regulator

BERLIN, September 13. /TASS/. According to the verdict of the European Court of Justice, Russian Gazprom is banned from supplying gas via OPAL pipeline exceeding the capacity prescribed by the court’s decision. This is according to a statement issued by Germany’s Federal Network Agency.

"Since the verdict was brought Gazprom has been forbidden to supply gas using the transit capacities which are affected by that decision. According to the Federal Network Agency, Gazprom has alternative routes and shipping terminals for further fulfillment of its obligations to supply gas to the European Union," the regulator said.

"If the company violates the conditions defined by the verdict, the Federal Network Agency reserves the right to impose fines," the document stresses.

Moreover, Gazprom will not be able to take part in the auction for OPAL pipeline capacities on September 16, according to a statement issued by Germany’s Federal Network Agency.

In its statement the German regulator demanded that the verdict of the European Court of Justice on OPAL pipeline should be immediately implemented. That means that the company-operator OPAL Gastransport GmbH should be prohibited from participating in additional auctions for gas pipeline capacities.

"The Federal Network Agency considers OPAL Gastransport to be banned from holding additional auctions for [granting] transit capacities since the court decision was taken. This in particular applies to the auction for October, which was supposed to be held on September 16," the document says.

Litigation

For several years, Russia could use only 50% of the pipeline’s capacity, as prescribed in the EU’s Third Energy Package. Gazprom asked for permission to use OPAL’s 100% capacity, as the Russian holding company is the only gas supplier to the Nord Stream pipeline, which receives gas via OPAL. In autumn of 2016, the EC allowed Gazprom to participate in auctions for the right to use another 40% of Opal's transit capacities.

However, at the end of 2016, Poland appealed against this decision, claiming that it contradicts the principle of diversification of supplies. Poland also believes that the decision poses a threat of disruption or termination of supplies, since gas flows through the territory of Ukraine. In the summer of 2017, the Dusseldorf Higher Regional Court decided to remove interim measures on Gazprom’s use of Opal’s facilities imposed by the lawsuit. Poland finds that now the decision of the European Court of Justice will not allow Gazprom to abandon gas transit through the territory of Ukraine.

On September 10, on considering Poland’s lawsuit, the EU Court of Justice overturned the European Commission’s decision of 2016, according to which Gazprom could fully use the capacities of the OPAL gas pipeline. The Russian company reserves the right to use 50% of OPAL’s capacity, but it will no longer be able to participate in auctions for the remaining 40%.