Chapter News

New studies on upgrading the gas market in the context of the European Green Deal

June 05, 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.

To support the reflections on the possible need to enhance the EU regulatory framework for gas markets in the context of the European Green Deal and the trajectory towards the decarbonisation of gas, two studies have been published, commissioned by the Directorate-General for Energy of the European Commission.

It is important to note that the studies reflect only the views of the authors. They have neither been adopted nor in any way approved by the Commission and should not be relied upon as a statement of the Commission’s views. The results of the studies do not bind the Commission in any way. Any possible implementation of options and/or recommendations identified will be assessed in the context of the policy objectives established in the Green Deal Strategy and subject to an impact assessment.

The study was conducted by a consortium of consultants led by Trinomics in collaboration with REKK and Equidity. The study identifies barriers and gaps that may need to be addressed in order to ensure optimal use of existing LNG terminals in the EU. This finding is especially relevant due to the significant increase of LNG imports to the EU in the recent years. The study suggests recommendations that would allow the better use of existing LNG terminal capacities, improve their link with the gas market, and facilitate the response to market demand.

The study was conducted by a consortium of consultants led by Schönherr attorneys at law, identifying existing administrative and regulatory requirements to enter and trade on the EU wholesale gas markets.. Based on the overview of current barriers to entry and trade on wholesale gas markets, possible legislative options at EU-level to mitigate them are analysed, including mutual recognition, minimum requirements, an EU pass porting system, and the abolishment of licensing requirements.

Compliments of the European Commission.