Germany's NEL Gas Pipeline Hits Roadblock

Construction on Germany’s Nordeuropäische Erdgasleitung (North European Gas Pipeline or NEL) natural gas pipeline has been halted as a result of court action.

Residents from Luneburg in Lower Saxony filed objections with the courts saying the pipeline would run 30-50 meters away from houses, through a school and sports grounds.

A Lower Saxony court halted construction of the pipeline which is to connect to the Nord Stream project, ordering partners WINGAS, E.ON Ruhrgas and Gasunie to develop an alternative route.

Helmut Roloff, an E.ON.Ruhrgas, spokesman for said that the problem was localized and would not affect the development of other sections of the pipeline.

The 440km NEL will carry Russian gas from Nord Stream passing through the German states of Mecklenburg-Western Pomerania towards Reden in Lower Saxony.

Lawsuits have also been filed by two German cities, Winsen and Stelle and citizens over security concerns, according to a press release dated April 18 on the website of Lower Saxony's Higher Administrative Court.

In July, Fluxys, the operator of the natural gas transmission and storage infrastructure in Belgium, entered into a term sheet to acquire a 19% stake in NEL from WINGAS.