The BNetzA Nord Stream 2 certification procedure

It goes without saying that the Russian gas flows and Nord Stream 2 have kept me busy in November. BNetzA’s suspension of the certification process was even in prime-time news broadcasts. I explain the latest developments and backgrounds in the topic of the month.

In November, of even greater importance for me were two documents: the coalition treaty of the so-called traffic light coalition and the leaked drafts of the amendment of the Gas Directive and the direct Regulation of Access to the Gas Transmission Networks. Regarding the coalition treaty, I was surprised by how “gas-friendly” the treaty is. Nothing discussed during the negotiations, such as a concrete end date for phasing out natural gas or the ban of natural gas boilers in new or completely renovated buildings, made it into the final version of the treaty. This was mainly the work of the SPD (the Social Democrats). I wondered whether the treaty is really that good for the gas industry. You will find my thoughts in this edition. It will be interesting to see how the new “super minister” for Energy and Climate, Robert Harbeck (Green Party) will handle gas – especially in the heating market – and hydrogen. 

The EU documents are hard to read, but the regulatory approach is very clear. The EU Commission wants a strong separation of natural gas and hydrogen networks. In this edition, I describe what this means for the regulatory rules.

What remains is to wish you a Happy New Year in these strange times. Stay healthy and in a positive mood. The next edition will be published at the beginning of January 2023.

Dr. Heiko Lohmann
Freelancer

E-Mail +49 30 8824005

TOPIC OF THE MONTH: The BNetzA Nord Stream 2 certification procedure

After the experiences of the last months with Russian gas flows, capacity bookings and all the discussions around the completion and certification of Nord Stream 2, nothing should come as a surprise anymore. But November was again a remarkable month regarding these topics and the impact on prices. But do not be afraid – the author of this publication will not provide an analysis of similar length to that in the last edition. It is more of a follow-up focusing on Russian gas flows, storage facilities used by Gazprom, and Nord Stream 2. The certification procedure is a good starting point.

Suspension of the certification procedure 

On November 16, BNetzA announced the suspension of the certification procedure. It stated that a certification of Nord Stream 2, a stock cooperation under Swiss law, could not comply with the German energy law. Only a company with a German legal form is eligible to be certified as an Independent System Operator. This is stipulated somewhat indirectly in the German Energy Act. I will not bother you, dear readers with the legal details. Nord Stream 2 allegedly accepted this assessment only after some lengthy discussions with the regulator and agreed in November to establish a legal entity as an affiliate in Germany. The new company will become the owner of the Nord Stream 2 part in German territorial waters and will become the operator of this section. Therefore, the company must be endowed with the necessary personnel, capabilities and means. It should be possible to buy services from other network operators. The TSOs OPAL Gastransport and NEL Gastransport are, for example, very lean organisations and rely on services bought from Gascade. But service purchases may become challenging if the US sanctions are tightened, as discussed in Congress (ener|gate Gasmarkt 11/21).