Nord Stream 2 loses case to have EU pipeline rules waived

Nord Stream 2 loses case to have EU pipeline rules waived

Nord Stream 2 AG, the controversial gas pipeline project owned by Gazprom, lost a German court fight to sidestep European Union rules separating production from transportation, a decision that may delay the start of the operations.

The Dusseldorf Higher Regional Court on Wednesday dismissed a bid by Gazprom to overturn the German Network Agency’s decision to impose the EU measures, a spokesman for the tribunal said by phone.

While the ruling means that Nord Stream 2 could be fined if it fails to comply with the EU regulation once gas flows, it doesn’t have an impact on the construction of the project, which was licensed under a different set of rules and is expected to be concluded this month. Technically, the EU measures also don’t bar starting the flow of gas, but Gazprom would need to restructure Nord Stream 2, a step that could cost time.