Den Norske Veritas - Germanischer Lloyd Opts Out of Nord Stream 2
Den Norske Veritas - Germanischer Lloyd (DNV GL), the acclaimed international accredited registrar and classification society headquartered in Norway and frequent and valuable participant in the annual Berlin Pipeline Technology Conference, has announced that it has had to stop working on Nord Stream 2 under the threat of US sanctions.
“The US State Department has published a new clarification regarding the Protecting Europe’s Energy Security Act (PEESA). According to the new guidelines, DNV GL’s further work on monitoring vessels and equipment engaged in the Nord Stream 2 project is seen as subject to sanctions,” the Norwegian-German company said, stressing that it has stopped providing the services that may become subject to PEESA.
DNV GL had been responsible for monitoring and certifying the testing and preparation works for equipment that is used by vessels during the construction of the underwater pipeline. The company was also expected to grant a fire security certificate after the project is complete.
The Danish government requires DNV GL to certify compliance from Nord Stream 2 before the nation will make use of it, according to Mitch Jennings, an analyst at the Moscow-based British firm Sova Capital.
In an interview with Bloomberg, Jennings said: “According to my understanding, if the pipeline certification is restricted, the launch of the pipeline may become very difficult.
"The new sanctions might require Nord Stream 2 AG to find a certification agency that is willing to be subject to sanctions,” according to Jennings.
The new pipeline, which was designed to boost supplies of cheaper Russian natural gas to Germany and other European states by 55 billion cubic meters per year, is currently nearing completion in the Baltic Sea with a little more than 100 km to construct.