Nord Stream II Will Restrict Competition: Polish Watchdog

The Nord Stream II natural gas pipeline project could lead to significant restrictions in competition, according to Polish anti-monopoly watchdog UOKIK on Friday.

UOKIK said the six parties which formed a joint venture for the Nord Stream II - from Russia, E.ON from Germany, Engie from Ranse, OMV from Austria, Shell and Wintershall from Netherlands, will design the pipeline.

The six companies asked for clearance for the joint venture from UOKIK in 2015.

The planned pipeline is an offshore twin pipeline system, which will run from the Russian Baltic coast to Germany.

UOKIK noted that market studies are needed as part of the analysis on the implications of the project on Poland's and Europe's energy market.

As a result, the authority asked natural gas firms operating in Poland for their appraisal of the planned project.

"The office found that the project might lead to restrictions in competition. At the moment Gazprom has a dominant position with respect to transmission of gas to Poland, and the planned transaction could further strengthen the company’s negotiating position with users in Poland," UOKIK said.

"While a statement of reasons to the objection is provided, it does not determine the decision that is eventually issued in the case," the watchdog said.

Russia's Gazprom owns 51 percent of the shares in the $10 billion project that plans to deliver gas with a capacity of 55 billion cubic meters beneath the Baltic Sea through a 1,200 kilometer-route to Germany. The project plans to bring gas to France, the U.K., the Netherlands and Denmark.

Gazprom already sends gas to Germany via the Nord Stream I pipeline which was launched in 2011, and the Nord Stream II project plans to have similar capacity potentially doubling it to 110 billion cubic meters in total.

(Anadolu Agency)

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