Study on Gas market upgrading and modernisation – Regulatory framework for LNG terminalsUploaded: 3 of June, 2020

Well-functioning and liquid gas markets are a prerequisite for ensuring affordable energy for consumers, competitiveness of industries, and security of supply. They also play a role in achieving the environmental ambitions of the European Green Deal, which foresees the decarbonisation of the gas sector via a forward-looking design for a competitive decarbonised gas market. This study identifies and elaborates exiting barriers and gaps that could be addressed in order to ensure optimal use of existing LNG terminals in the EU. Such analysis is especially relevant due to the significant increase of LNG imports to the EU in the recent years. Additionally, the study provides recommendations aiming at addressing and mitigating identified barriers including both potential legislative and non-legislative measures.

Our team was part of the consortium lead by Trinomics looking for these answers. The study includes in-depth interviews and a questionnaire pinpointing the most pressing regulatory obstacles identified by market participants, regulators and terminal operators. Possible measures to alleviate these obstacles were listed, and their positive effects quantified applying REKK's EGMM (European Gas Market Model).

REKK has participated in the modelling of possible regulatory measures to allow for better access of European traders to LNG supplies. Our findings indicated that although some barriers do exist, the current European regulatory framework is sound and allows the market to absorb any surplus from the global markets.

The study is available on the Commission's website.