How to Implement the Gas Package in Relation to LNG Issues

Introduction

The CEER Report on How to Implement the Gas Package in Relation to LNG Issues seeks to analyse the different possibilities for the implementation of the gas decarbonization package in relation to LNG and hydrogen terminal issues.

Context and Purpose

In CEER’s earlier reports, it was pointed out that LNG is playing a crucial role in ensuring supply security and enhancing market competition in the European energy sector. It was expected to assume a more prominent and significant role in Europe, with the EU shifting from being a balancing market to a reliable consumer. This expectation has now evolved from a mere prediction to a clear reality.

The objective of this report is to identify relevant provisions and assess the impact of the gas decarbonisation package on the LNG sector and the emerging role of hydrogen terminals.

The LNG report analyses new provisions in the Gas Directive and Regulation affecting LNG and hydrogen terminals as well as operators, focusing on additional or modified aspects compared to previous regulations. For LNG, the emphasis is on new elements introduced by the gas decarbonisation package, while existing regulations have been avoided.

Key Findings

Overall, the gas decarbonisation package extends existing LNG terminal regulations to include hydrogen terminals while also introducing new rules for LNG terminals. Notably, it enhances transparency and optimises the use of free capacity at LNG terminals while allowing more flexible gas trade. Hydrogen terminals are now regulated for the first time, covering third-party access to these infrastructures, hydrogen transmission network connections, unbundling requirements, designation of operators, and other conditions. Importantly, hydrogen terminals include not only those dealing with liquid hydrogen but also ammonia, which may become relevant once hydrogen networks start to develop.

Recommendations

This LNG report is not an interpretative note from regulatory authorities. Instead, it aims to assist stakeholders impacted by the implementation of the gas decarbonization package concerning LNG and hydrogen terminal matters.