MNI: German MEPs See More Nord Stream Scrutiny As Prices Spike

The German energy regulator's pending certification of the Nord Stream 2 pipeline could come under additional scrutiny with the formation of a new government coalition, German members of the European Parliament told MNI, amid speculation that Russian giant Gazprom is taking advantage of soaring gas prices to pressure for the project to go ahead.

A government in Berlin bringing in both the Liberal FDP party and the Greens could be more insistent in ensuring that regulator Bundesnetzagentur enforces European rules such as the requirement for Gazprom to allow equal access to the pipeline to different gas suppliers, said Christian Democrat-EPP MEP Michael Gahler.

"The Liberal FDP does not want to increase Germany's dependence on Russian gas … while the Greens also use the additional argument that gas is only a transitional means to a green future," he noted, adding that Gazprom had yet to unbundle access to the pipeline. "It will take some time."

The European Parliament will not compromise on Nord Stream 2's compliance with the EU legal framework, he added, speaking after MEPs recently wrote to the Commission to demand an investigation into possible manipulation of the gas price by Gazprom. Contrary to the practice of recent years, Gazprom has not taken steps to pre-fill storage tanks in Germany ahead of the winter, Gahler said.

The Commission stated Wednesday that while Russia had so far fulfilled long-term contracts to Europe, it has made no move to provide extra supplies despite the rise in prices.

LEGAL CHALLENGE

A spokeswoman for Nord Stream 2 declined to comment on the accusation of manipulation, but pointed to comments from the Minister for Economic Affairs of Saxony-Anhalt, Sven Schulze, who called for the immediate approval of the project in order to reduce gas prices.

Green MEP Reinhard Butikoefer agreed that the next German government might take a different attitude to Nord Stream 2 than that of outgoing Chancellor Angela Merkel. Nonetheless, he added, the European Commission would probably try to avoid "another fistfight" with Germany over the project following U.S. President Joe Biden's break with Donald Trump's strong opposition.

Butikoefer takes issue with the idea that Nord Stream 2 is needed to tackle the recent gas price surge.

"At present the Russians are not even using a third of the capacity of the existing Ukraine pipeline, so if they wanted to supply more gas, they could easily do it," he said, describing the struggle between the German authorities and Gazprom as a "multi-dimensional chess game."

"I get the impression, like everyone else, that the Russians want us on our knees," he said.

Even if the pipeline does get the green light from the regulators, it could face an additional hurdle in the form of a legal challenge from a third country, Butikoefer said.

Poland scored a legal victory this summer when the European Court of Justice confirmed limits on Gazprom's access to the OPAL pipeline, which links Nord Stream 1 to consumers in Central and Eastern Europe, he noted.

"I know there are deliberations here and there that such a court case might be initiated once the German regulator has drawn its conclusions – that is still an ongoing arm-wrestling contest and the probability that Nord Stream might end up a sunk investment is not zero," Butikoefer said.