Regulatory exemption for German LNG project

Regulatory exemption for German LNG project

The German regulator, Bundesnetzagentur (BNetzA), has exempted German LNG Terminal GmbH as operator of the planned LNG terminal in Brunsb├╝ttel, Germany from network access and revenue regulation for a period of 25 years.

In its decision the regulator cites a report by Frontier on behalf of German LNG Terminal GmbH.

The decision was conditional on

  • the exemption not having a negative impact on competition; and
  • the project improving supply security and competition in Germany and the European Union.

The regulator states that the analyses by Frontier support that these conditions are met. In particular, the LNG plant will help improve security of supply by diversifying gas supply both in terms of new gas sources and new transport routes. In addition, BNetzA says that the additional capacity of the LNG plant in Brunsb├╝ttel will increase the capacity of gas supply into Germany and strengthen the resilience of gas supply.

Conditions were imposed on the allocation of LNG terminal capacity and on measures to guarantee an effective congestion management and use-it-or-lose-it rules.

Frontier regularly advises on regulatory exemptions and competition projects related to LNG, gas pipelines and other energy assets.