EC investigating Nord Stream 2 project

The European Commission is analyzing the legal basis of the Nord Stream 2 project, but has not yet determined if the underwater part of the pipeline will be subject to the terms of the third EU energy package, vice-head of Energy Affairs Maroš Šefčofič said. The so-called third energy package, was created to help break up monopolistic actions in the delivery of raw energy materials on the EU market.  It calls for the separation of energy supply and generation from transmission networks, as well as the use of independent regulators to ensure that fair competitiveness is observed on the markets. If the underwater segment of the pipeline is deemed to be within the jurisdiction of the energy package, it could have undesired consequences for Gazprom, as it would mean they would have to guarantee access to the pipeline to other suppliers, and see its own usage share drop to as little as 50 percent. The Nord Stream 2 project, if ultimately approved and completed, will mean that 80 percent of Russian gas will be imported to Western Europe beneath the Baltic, bypassing Poland and Ukraine.