Nord Stream 2 registers German subsidiary

The operator of the Russian Nord Stream 2 gas pipeline has registered a subsidiary for the German part of the pipeline to meet German regulatory requirements, it said, though certification for the project still remains suspended by Berlin.

Nord Stream 2 said the subsidiary, Gas for Europe GmbH, will be headquartered in the Germany city of Schwerin. It will own and operate the 54-kilometre section of the Nord Stream 2 Pipeline located in German territorial waters and the landfall facility in Lubmin as an independent transmission operator, the company said, to comply with German regulations.

The pipeline was built in September, but has remained idle since then in expectation of certification by Germany and the European Union.

Germany's Federal Network Agency - which regulates the country's electricity, gas, telecommunications, post and railway sectors - in November suspended a process to certify the pipeline, saying the operator should register a legal entity in Germany.

The regulator said on Wednesday the certification procedure will remain suspended until the transfer of the main assets and human resources to the subsidiary has been completed and the Federal Network Agency will be in a position to check the unit's documents for completeness.

"We currently cannot predict when the procedure will be resumed," it said in a statement.