Nord Stream 2 gas link operator wins further stay of bankruptcy: court

A Swiss court has granted the operator of the Nord Stream 2 gas pipeline from Russia to Germany a stay of bankruptcy until early January, as calls from within Germany for the link to be opened continue.

On May 11, Switzerland-based Nord Stream 2 AG was awarded a provisional stay of bankruptcy until Sept. 10, according to a notice in the Swiss Official Gazette of Commerce.

In a new notice dated Sept. 8, a court in Zug awarded a four-month extension of the stay of bankruptcy from Sept. 10 until Jan. 10, 2023.

Nord Stream 2 never started commercial operations despite construction work on the two-string 55 Bcm/year pipeline being completed in September 2021.

There have been calls from within Germany in recent weeks to allow Nord Stream 2 to begin operations after flows through the first Nord Stream system were curtailed and then halted altogether, with gas prices having surged to new records as a result.

Platts assessed the Dutch TTF month-ahead price at an all-time high of Eur319.98/MWh on Aug. 26, according to data from S&P Global Commodity Insights. It was last assessed on Sept. 9 at Eur205.70/MWh.

Russian President Vladimir Putin has repeatedly said Nord Stream 2 could begin operations quickly to supply gas to Europe, while stressing that western sanctions were preventing the first Nord Stream system from resuming operations.

Officials within Germany have also said Nord Stream 2 could offer a solution to the deadlock over gas supplies.

Nord Stream 2 AG could not be reached for comment Sept. 12, with its website no longer operational and emails addressed to its press office undeliverable.

Certification suspension

Germany on Feb. 22 suspended the certification process of the operator and US President Joe Biden followed up by imposing sanctions against operator Nord Stream 2 AG on Feb. 23, a day before Russia launched its invasion of Ukraine.

In a response to a written parliamentary question on Sept. 4, the German government reiterated its stance on Nord Stream 2.

Asked what measures the federal government could take to make Nord Stream 2 operational and how long that would take, the government responded: "The usability of Nord Stream 2 requires it to have a certified network operator."

It said the certification proceedings had been suspended by the regulator because the necessary documents had not been transferred from Nord Stream 2 AG to a German subsidiary.

"In addition, the required security of supply assessment by the economy ministry was withdrawn on Feb. 22, 2022. Therefore the conditions for certification are not met," it said.

Russia's Deputy Prime Minister Alexander Novak said in July the decision to suspend Nord Stream 2 was politically motivated.

"Such decisions are made contrary to common sense, economic feasibility, as well as the interests of the economy and citizens of Europe, who are deprived of the opportunity to receive sufficient volumes of gas at an affordable price," Novak said at the time.