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Derogations in relation to natural gas transmission lines to and from third countries

1. In respect of natural gas transmission lines between a Member State and a third country completed before 23 May 2019, the Member State where the first connection point of such a transmission line with a Member State’s network is located may decide to derogate from Articles 31, 60, 71 and 72, Article 78(7) and (9) and Article 79(1) for the sections of such natural gas transmission line located in its territory and territorial sea, for objective reasons such as to enable the recovery of the investment made or for reasons of security of supply, provided that the derogation is not detrimental to competition on or the effective functioning of the internal market for natural gas, or to security of supply in the Union. The derogation shall be limited in time up to 20 years based on objective justification, renewable if justified and may be subject to conditions which contribute to the achievement of the conditions in the first subparagraph. Such derogations shall not apply to transmission lines between a Member State and a third country which has the obligation to transpose this Directive and which effectively implements this Directive in its legal order under an agreement concluded with the Union.

2. Where the transmission line concerned is located in the territory of more than one Member State, the Member State in the territory of which the first connection point with the Member States’ network is located shall decide whether to grant a derogation for that transmission line after consulting all the Member States concerned. Upon request by the Member States concerned, the Commission may decide to act as an observer in the consultation between the Member State in the territory of which the first connection point is located and the third country concerning the consistent application of this Directive in the territory and territorial sea of the Member State where the first interconnection point is located, including the granting of derogations for such transmission lines.

3. Decisions pursuant to paragraphs 1 and 2 shall be adopted by 24 May 2020. Member States shall notify any such decisions to the Commission and shall publish them.

4. By 5 August 2026, the Commission shall submit a report to the European Parliament and to the Council on derogations granted under this Article. The report shall, in particular, assess the impact of such derogations on the effective functioning of the internal market for natural gas as well as on security of energy supply and the essential security interests of the Union and the Member States.