Germany's energy regulator suspends certification of Nord Stream 2 project

Germany's energy regulator Bundesnetzagentur has suspended the cerfication process of Russia's Nord Stream 2 pipeline project.

According to the regulator, ''A certification for the operation of Nord Stream 2 will only be considered once the operator is organised in a legal shape compliant with German law.''

To obtain an operating license, the pipelinenow requires a Swiss-based consortium to fulfill further prerequisites.

The decision of the temporary halt in approval process is a major setback for the $12 billion project.

In response, it issued a statement saying, ''Our company undertakes this step to ensure compliance with applicable rules and regulations. We are not in the position to comment on the details of the procedure, its possible duration and impacts on the timing of the start of the pipeline operations.''

The pipeline, that will be laid under the Baltic Sea, has experienced several delays after being embroiled in mutiple disputes.

It has become a geopolitical hot potato as German chancellor Angela Merkel had warned Russian President Vladimir Project of dropping the project due to its conflict with Ukraine.

However, the project will double the gas supply from Russia and Germany. It will also help in the transition towards nuclear energy.

Critics have condemned the pipeline as it deprives Ukraine of a transit fees and bypasses Ukraine's gas infrastructure.

The dispute comes as Europe, which receives a third of its gas from Russia, is battling surging energy prices just as the continent heads into the colder winter season.