German Part of Nord Stream 2 Pipeline's Subsidiary Established

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German Part of Nord Stream 2 Pipeline's Subsidiary Established

Mon, 01/31/2022 - 09:47
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Nord Stream land-based facility at Lubmin (© Shutterstock/Maren Winter)
Nord Stream land-based facility at Lubmin (© Shutterstock/Maren Winter)

Nord Stream 2 AG on Wednesday, January 26, announced funding a German subsidiary gas company. The new company will own and operate the 54-kilometer section of Germany's side of the Nord Stream 2 pipeline and the land-based facility at Lubmin.

According to the press release details, the new company will operate as an independent transmission operator in line with the German Energy Industry Act (EnWG).

Back in 2021, the German Federal Network Agency, also known as Bundesnetzagentur, issued a statement outlining that the founding of a subsidiary was necessary before Nord Stream 2 was certified according to the provisions of the German Energy Industry Act. The gas for the Europe GmbH has its headquarters in Schwerin.

Despite the anticipations of the world's largest gas pipeline becoming operational in late 2021, the entire process has continuously faced a delayed certification due to the lengthy bureaucratic course.

Despite the delayed operations, the pipeline has also become a tool for bargaining in the intervention between Ukraine and Russia in the current geopolitical stalemate.

Amid the highest tensions between Russia and the west, the United States and Germany have unanimously hinted at a possible halt of the ongoing certification process should Russia invade their neighbor Ukraine.

When it becomes operational, the Gazprom-owned twin gas pipelines will deliver up to 55 billion cubic meters of gas to Europe each year, meeting the continent's high demand in the energy market.

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