Summary:
Over the last decade, the European Union (EU) has started to liberalize national gas markets and a regulatory reform has followed in Member States. This new regulatory framework implied important changes in the structure and operating environment of the gas industries mainly due to the unbundling of activities, the incorporation of competition, and the application of Third Party Access (TPA) policies in essential facilities where the competition is not feasible (transmission networks, distribution networks, and, in some cases, liquefied natural gas (LNG) terminals and storage facilities).
This research is focused on the LNG terminal and the two different approaches that investments in new LNG terminals may follow: i) a regulated approach with a central planning of the needs and regulation of new capacities, ii) a market-oriented approach (exemptions), where each company remains fully responsible for their decisions.
The main objective of this research is to analyze and discuss the current regulation of LNG terminals in the EU, the advantages and drawbacks of choosing a regulated or non-regulated regime and the consequences for the coexistence of both regimes. In addition, some policy recommendations about why authorities should encourage NRA to implement regulated or non-regulated regimes for LNG Terminals will be provided.
Keywords: EU gas markets; LNG Terminals; Third Party Access; Natural Gas Regulation.
Registration date: 20/06/2016
IIT-16-094A
