EU plans rule change to snag Russian pipeline

France's Total opens office in Washington to boost relations


FE Team | Published: November 06, 2017 00:44:55


EU plans rule change to snag Russian pipeline

BRUSSELS, Nov 5 (Reuters): The European Commission (EC) is proposing to extend EU internal energy market rules to cover offshore gas pipelines, an EU document shows, its latest attempt to regulate Russia's planned Nord Stream 2 pipeline to Germany.

The EU executive sees Russia's plan to double the gas it could pump under the Baltic Sea to Germany, bypassing traditional routes via Ukraine, as undercutting EU efforts to reduce dependence on Moscow and its support for Kiev.

The move dovetails with the Commission's proposal for a mandate from member states to negotiate with Russia over objections to the pipeline.

Even with the changes, EU regulators say they may need to seek talks with Russia as it cannot impose its law on the stretch of the pipeline that is outside its territory.

"This proposal does not solve all the problems … and some of those need to be negotiated," an EU official said.

Under the proposed changes to the gas directive, seen by Reuters, all import pipelines would have to comply with EU rules requiring pipelines not be owned directly by gas suppliers, non-discriminatory tariffs, transparent operations and at least 10 per cent of capacity be made available to third parties.

Another report from London adds: Total has opened an office in Washington in a bid to strengthen relations with the US administration as the French oil and gas company prepares to invest billions in Iran.

Chief Executive Officer Patrick Pouyanne confirmed Total opened a government relations office, telling Reuters "we should have done a long time ago."

In July, Total became the first Western energy firm to sign a deal with Iran since the easing of international sanctions in 2015, agreeing to develop Phase 11 of the South Pars offshore gas field with a total investment of $5 billion.

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