Ukraine Seeks Role in Opal Hearing

Naftogaz Ukrainy said December 7 that, as a party adversely affected by the European Commission's Gazprom-Opal decision, it insists on the right to argue against it formally, as well as to access the text of the decision which remains unpublished.

On October 28, the EC said that Gazprom would be able to freely use up to 80% of the capacity of the 36bn m³/yr Opal line, up from the present 50%, as decided by the German network regulator BNetzA. This increase takes effect January 1 and enables Gazprom to send more gas to Europe through Nord Stream and less through Ukraine.

According to German legislation and the EU's international obligations, Naftogaz said, the interests of concerned parties must be taken into account by the EU institutions and authorities of member states when relevant decisions are made.

Naftogaz argues that the settlement agreement "restricts and distorts competition in Ukraine and other countries of central and eastern Europe. It enables Gazprom to considerably strengthen and abuse its already dominant position in the markets of Germany, Poland, Ukraine, Slovakia and other countries of the region. The agreement does not comply with the Energy Community Treaty as it impairs gas flows between the Energy Community Contracting Parties and the EU member states." Ukraine is one such contracting party.

Nord Stream at Greifswald, starting point of Opal

(Credit: Nord Stream)

Naftogaz believes that Gazprom’s wider access to Opal capacity is likely to mean no more gas flows from Poland and less from Europe generally; higher prices; and more costs optimising Ukraine's pipeline and storage operations.

On December 5, Polish state-owned PGNiG said it had taken legal action to reverse the decision of the EC and BNetzA. The EC may decide not to publish decisions that contain confidential information.

William Powell