OPAL pipeline decision postponed until end of October 2014

The European Commission has postponed the decision on the OPAL pipeline, which links Russia and Europe via Nord Stream bypassing transit countries, until 31 October, according to the Russian Energy Ministry.

The delay was provoked by the upcoming trilateral gas talks between Russia, the European Union and Ukraine, the date of which has not been determined yet.

By delaying the decision, the European Commission is trying to give Kiev better positions in the negotiations with Gazprom, taking into account the latter’s interest in preserving a viable transit route via Ukraine.

The European Commission was expected to decide by September 15 whether Gazprom could fill up the whole of the OPAL pipeline, which is the final distribution link of the Nord Stream pipeline.

Under the Third Energy Package, some of OPAL’s capacities should be reserved for gas from independent suppliers. In practice, this will limit Gazprom’s gas supplies to Europe by Nord Stream, which appears to be the most reliable route amid the ongoing conflict in Ukraine.

OPAL pipeline

OPAL (Ostsee Pipeline Anbindungs-Leitung) is a natural gas pipeline in Germany that runs alongside the German eastern border. The OPAL pipeline is one of two projected pipelines to connect the Nord Stream pipeline to the existing pipeline grid in Middle and Western Europe, the other one being the NEL pipeline.

The OPAL pipeline transports Russian gas through Germany to the Czech-German border, bypassing Ukraine. Russia is currently allowed to use only 50% of the pipeline because of EU rules that aim to prevent firms that already dominate supply from also controlling distribution networks.

Edited from various sources by Elizabeth Corner

Sources: ITAR TASS, Wall Street Journal

Read the article online at: https://www.worldpipelines.com/business-news/16092014/opal-pipeline-decision-postponed-until-end-of-october-2014/