This judgment concerns the legality of Directive (EU) 2019/692 which amended Directive 2009/73/EC regarding common rules for the internal natural gas market. The key issue was the extension of EU gas market rules to pipelines between EU Member States and third countries, particularly affecting the Nord Stream 2 pipeline between Russia and Germany.The judgment analyzes several key aspects of the directive:
- The extension of EU gas market rules (unbundling, third-party access, tariff regulation) to pipelines connecting EU states with third countries
- The introduction of a derogation possibility for pipelines completed before May 23, 2019
- The specific impact on Nord Stream 2, which could not benefit from the derogation as it was not completed by the deadline
The Court rejected all claims by Nord Stream 2 AG challenging the directive, finding that:
- The different treatment of completed vs uncompleted pipelines was justified and proportionate
- The directive pursued legitimate objectives of completing the internal gas market and ensuring security of supply
- The legislative process was proper despite lack of specific impact assessment
- There was no misuse of powers even though Nord Stream 2 was particularly affected
The judgment has major implications for regulation of gas imports into the EU, particularly from Russia, by requiring key infrastructure to comply with EU market rules regarding ownership unbundling, third-party access and transparent tariffs.